Oil rise doubles Shell profit

HIGHER oil and gas prices sent profits at oil titan Shell soaring despite a £1.4bn hit from President Trump’s tax reforms.

Profits more than trebled in 2017 to £8.4bn, with Shell making £2.1bn in the latest quarter of 2017 compared to £725m during the same period a year earlier. Figures for 2017 included the £1.4bn Shell expects to lose due to the 14 percentage point cut in US corporation tax, which affects the value of deferred tax assets. However, it expects to benefit from the cuts long term.

Oil prices have risen from less than $30 two years ago to more than $60 a barrel.

Shell sold oil at an average $49 per barrel last year, 27pc higher than the $38.64 average price in 2016. Its gas prices also increased, by 17pc. Production for sale remained broadly flat at 3.6m barrels per day.

Shell has also been selling assets to pay for its takeover of BG Group in 2016, and has sold almost £21bn, helping it cancel a dividend programme late last year. However, yesterday investors worried that a £25bn share buyback could be delayed after it revealed lower than expected cash flow of £24bn.

Boss Ben van Beurden and finance chief Jessica Uhl declined to put a date on when the buyback would start.

Anglo-Dutch firm Shell is also planning to reduce its reliance on oil and gas as the world moves away from fossil fuels.

Last year it bought UK household supplier First Utility as it plans to get a foothold in the increasing electrification of power. Van Beurden confirmed plans to spend at least a billion dollars on new energies.