European oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B) on Thursday reported a small drop in first-quarter profit, even as revenues increased from last year amid higher oil prices. Stripping out inventory adjustments, profit grew from the year-ago period. The company also raised its asset sales target.
Income attributable to the company's shareholders decreased to $8.72 billion from $8.78 billion reported last year. Earnings per share fell to $1.40 from $1.42 a year ago. Income before taxation slipped 6 percent to $15.36 billion.
The company recorded net gains of $453 million and $198 million related to upstream and downstream earnings, respectively, and incurred a net charge of $271 million, mainly reflecting a tax provision. Earnings in the first quarter of 2011 included a net gain of $637 million.
On a CCS (current cost of supplies) basis, which excludes inventory gains or losses, quarterly earnings grew 11 percent to $7.66 billion. Excluding items, CCS earnings climbed 16 percent from last year.
Royal Dutch Shell CEO Peter Voser said, "Shell's first quarter 2012 earnings increased from year-ago levels, through a combination of improved operating performance, increased upstream volumes and strong oil prices."
Revenues climbed to $119.92 billion from $109.92 billion generated last year. Total revenue and other income rose to $123.77 billion from $114.84 billion.
Upstream earnings climbed 16 percent, as production edged up 1 percent to 3,552 thousand barrels of oil equivalent per day. Excluding the impact of divestments, exits and PSC price effects, production was 4 percent higher than last year.
Downstream CCS earnings grew 13 percent from last year. Oil products sales volumes slipped 3 percent from the prior year.
"Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events. In downstream and North American natural gas we see continued challenges for our industry," Voser added.
In addition, the board announced a quarterly dividend of $0.43 per ordinary share and $0.86 per American Depositary Share, an increase of 2.4 percent compared to the first quarter 2011 US dollar dividend.
Shell also said asset sales for 2012 are likely to be over $4 billion compared to the earlier guidance of $2 billion to $3 billion.
RDSA.L is currently trading at 2,170.50 pence, up 42.50 pence or 2 percent, on a volume of 146,723 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.