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 on
track 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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