One of the world’s popular oil drillers, Royal Dutch Shell, has recorded a triple high Profit After Tax of almost $13 billion (10.5 billion Euros) in 2017, indicating a 119 per cent increase ($4.6 billion) in net profit for Q4 2017 compared to the same period 2016.
The oil giant announced that its high financial performance was boosted by its acquisition of BG Group in 2016 and rising prices of oil and gas recorded from Q2 of 2017.
The report revealed that earnings in the fourth quarter leapt 147 percent to $3.8 billion, more than double of the $1.8 billion net profit reported for the same period in 2016.
“Full-year earnings benefited mainly from higher realised oil, gas and liquefied natural gas (LNG) prices, improved refining performance and higher production from new fields, which offset the impact of field declines and divestments,” said the company’s chief executive, Ben Van Beurden.
He added that 2017 was a year of strong financial performance for the company as profit adjusted for exceptional items and the changing value of oil and gas inventories surged to $12.1 billion in the year under review, from $3.5 billion from the previous period.
Shell’s financial performance reflects its relentless focus on value, performance, and competitiveness which raked in $39 billion from its operations, excluding working capital movements from its upgraded portfolio.
The company’s 2017 annual net profit stood at $15.8 billion, which it attributed to the commitment of its shareholders on a CCS (Current Cost of Supplies) basis, excluding one-off items.
From a plummeting trend that brought about a free-fall in oil prices, Shell’s performance indicated a leapt in prices to about 15 percent to finish the year at around $60 per barrel, within the production benchmark of OPEC.
With the prices of Brent crude currently running over $71 per barrel recorded in January, 2018, the oil sector is in wait for a boom that might itch $120 a barrel recorded in 2014.
Article by: Tersoo Agber