The Hague-based LNG giant Shell on Thursday reported a 245 percent jump in profit for the second quarter, driven by improved operational performance and industry conditions.
Shell’s second-quarter earnings on a current cost of supplies (CCS) basis and excluding exceptional items rose to $3.6 billion, compared to $1 billion during the corresponding quarter last year.
Cash flow from operating activities for the second quarter 2017 of $11.3 billion, compared with $2.3 billion in the second quarter 2016.
Commenting on the results, Shell’s CEO Ben van Beurden said the results in the quarter show that the company is being reshaped following the integration of BG.
“Cash generation has been resilient over four consecutive quarters, at an average oil price of just under $50 per barrel. This quarter, we generated robust earnings excluding identified items of $3.6 billion, while over the past 12 months cash flow from operations of $38 billion has covered our cash dividend and reduced gearing to 25 percent,” van Beurden said.
LNG sales rise
Shell said its LNG sales volumes of 16.08 million tonnes increased by 13 percent compared to the same quarter a year ago.
LNG sales volumes mainly reflected increased trading of third-party volumes and higher liquefaction volumes compared to the second quarter in 2016.
Shell’s second-quarter LNG liquefaction volumes rose 7 percent to 8.09 million tons.
Compared with the second quarter 2016, LNG liquefaction volumes mainly reflected the start-up of Gorgon in Australia and lower maintenance, partly offset by lower feedgas availability mainly at QGC in Australia.