Shell, BP beat fore­cast in­come, oil ma­jors adapt to low prices

The Star (Kenya) - - News Business -

REUTERS/ Royal Dutch Shell and BP yes­ter­day joined peers in re­port­ing higher than ex­pected earn­ings by mak­ing fur­ther deep cuts in spend­ing to cope with an oil price down­turn now in its third year. The com­pa­nies said they are well on the way to adapt­ing to the more than halv­ing in prices. But con­tin­ued un­cer­tainty will test their abil­ity to in­vest for fu­ture growth and re­tain rel­a­tively large div­i­dends. Shell’s stock rose by more than three per cent as it an­nounced higher quar­terly earn­ings than arch-ri­val US Exxon Mo­bil. The An­glo-Dutch ma­jor, which ac­quired ri­val BG for $54 bil­lion (44.17 bil­lion pound) ear­lier this year, had been un­der pres­sure to cut costs.

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