Europe’s largest oil and gas company, Royal Dutch Shell Plc, on Thursday announced major investments in a number of projects including a deep-water project in Nigeria.
According to BBC, the company also announced that it recorded a $7.95 billion profit in the three months ended March 31, up 3.6 per cent from $7.68 billion a year earlier, despite “production troubles in Nigeria.”
Shell reported it recorded the results on the back of growth projects, and improvement in downstream profitability.
Shell however warned that the oil and gas industry continued to witness “significant” energy price volatility due to economic and political crisis. The crisis, he said, has impacted it negatively as its revenue stepped down to $112.8 billion in the January-March period from $119.92 billion in the previous year.
Shell said total oil and gas production grew to 3.559 million barrels of oil equivalent per day in the first quarter, from 3.552 million in the same period in 2012.
It also said it would increase its first quarter 2013 dividend to $0.45 per ordinary share, up 5 per cent from last year.
“Shell has emulated its rivals in beating expectations for the quarter, although investors are well aware that this is only part of a long game strategy,” commented Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.
According to Hunter, “The volatility of the oil price is a factor which Shell is trying to mitigate over a period of time.Even so, the company remains committed to selective acquisitions, non-core asset sales where appropriate and an extensive project plan which currently numbers 30 in an effort to underpin future production across several energy sources.”
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