Royal Dutch Shell strategy on track but earnings dip
Royal Dutch Shell has seen profits drop on the back of lower oil prices and weaker margins.
The North Sea operator posted statutory earnings of $5.3 billion (£4.1bn) for the first quarter, down 7 per cent on the same period last year.
Underlying earnings fell 2 per cent, surpassing expectations, as stronger trading and higher liquefied natural gas prices partially offset the drop in oil prices and refining profits. Shell hailed the performance as “strong”, despite also suffering a 9 per cent fall in cash flow from operating activities to $8.6bn.
Chief executive Ben van Beurden said: “Shell has made a strong start to 2019, with the first quarter financial performance demonstrating the strength of our strategy and the quality of our portfolio of assets.”
The Anglo-dutch firm also launched the next stage of its share buy-back programme, with the intention of buying $2.75bn of shares in the marketoverthenextthreemonths.