Growth of oil prices helps to gain LON:RDSA more profit than expected in the 3 Quarter. Royal Dutch Shell PLC, Europe’s largest oil company, Thursday reported third quarter net profit rose 6.5 percent from a year ago as increasing production and a rise in oil prices more than offset charges at its refining arm.
The company said net profit of $3.46 billion was up from $3.25 billion in the third quarter of 2009. Revenues rose to $90.7 billion from $75 billion.
“Our results have rebounded substantially from year-ago levels, with improved earnings and cash flow, underpinned by a 5 percent increase in oil and gas production,” said Chief Executive Peter Voser in a statement. “This is a better performance from Shell, achieved despite continued difficult industry conditions in refining and natural gas markets.”
Shell took a net charge of $1.41 billion for oil inventory that has fallen in value, mostly at its refining arm, compared to a net gain of $371 million in the third quarter a year ago.
Shell said that stripping out inventory effects, earnings would have risen 18 percent.
Shares rose 0.6 percent to euro22.785 in early trading in Amsterdam.
The company produced 3.06 million barrels of oil and equivalents per day, up 5 percent from a year ago, as the fifth of thirteen new production projects the company plans to open this year and next came on line.