European oil giant Royal Dutch Shell Plc (RDS-A, RDSA.L, RDSB.L, RDS-B) Thursday reported a marginal rise in fourth-quarter profit, helped by a slight growth in revenues. Production improved 3 percent from the prior year and the company announced a 4.7 percent increase in first-quarter dividend.
Income attributable to shareholders advanced 3 percent to $6.67 billion from $6.5 billion in the prior year. Earnings per share increased to $1.06 from $1.04.
Pre-tax income grew 5 percent to $12.36 billion from $11.81 billion.
On a current cost of supplies or CCS basis, which excludes inventory gains or losses, earnings climbed to $7.3 billion from $6.5 billion.
The latest results included items that led to a net gain of $1.712 billion compared with a net gain of$1.613 billion last year. Adjusted CCS earnings increased to $5.6 billion from $4.8 billion.
Revenue increased to $118.05 billion from $115.58 billion last year. Total revenue and other income advanced to $122.61 billion from $119.13 billion.
Upstream earnings dropped 6 percent to $6.18 billion and dropped 14 percent on an adjusted basis. Total production rose 3 percent to 3.4 million barrels of oil equivalent per day. Liquids production was in line with last year, while natural gas production increased 7 percent.
Adjusted downstream earnings were $1.16 billion compared to a loss of $278 million last year. Oil products sales volumes grew 3 percent, mainly due to increased trading volumes. Chemicals sales volumes increased 4 percent, amid improved operating performance and demand.
CEO Peter Voser said, "With the first year of our 2012-2015 growth targets completed, Shell is ontrack for plans we set out in early 2012, despite headwinds last year...We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment."
Shell expects to announce a dividend of $0.45 per share for the first quarter of 2013, a 4.7 percent increase over the fourth quarter of 2012 and year-ago levels.
The company expects $33 billion of net capital investment for 2013. Shell said the increased spending from 2012-13 will be driven by higher investment in deep water and upstream engines. The capital investment program for 2013 includes an increase of around $1 billion for non-cash capitalized leases, predominantly in deep water growth projects.
Oil & gas production is expected to average 4 million boe/d in 2017-2018 compared to 3.3 million boe/d in 2012.
RDSA.L is currently trading at 2,274.50 pence, down 1.3 percent from the previous close.
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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.