Shell reports earnings of $18.6 billion in 2010

LONDON: Royal Dutch Shell company on Thursday informed that it registered $18.6 billion in earnings during 2010, almost double in comparison with 2009.

"Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals, and Shell’s production growth and cost performance," said Peter Voser, Shell Chief Executive Officer.

In the fourth quarter of 2010, Shell reported earnings of $4.1 billion compared to $2.8 billion in the fourth quarter 2009. Basic CCS earnings per share increased to $0.93 from $0.19 in Q4.

"Fourth quarter and full year 2010 earnings were supported by higher oil prices and chemicals margins. However, our earnings were impacted by weak refining margins, pressure on certain regional natural gas prices, and volatility in downstream marketing margins as a result of rising oil prices," added Voser.

For the full year 2010, the oil giant recorded earnings, on a current cost of supplies (CCS) basis, of $18.6 billion. The amount is almost the double of the $9.8 billion earned in 2009. Basic CCS earnings per share increased by 90 percent from the 2009 data.

In 2010 Shell made good progress on implementing strategy, improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders.

Shell is focusing on continuing improvement, reducing costs, enhancing Shell’s operating performance, and rebalancing the portfolio for profitable growth. In the last two years, Shell brought the total underlying cost reduction to $4 billion.

In order to continue financial growth, the oil giant expects that for 2011 asset sales proceeds could reach around $5 billion, including approximately $2 billion of proceeds from transactions announced in 2010.

"In 2010 we started up 6 key projects in Upstream and Downstream. In Qatar, in early 2011, we achieved first offshore gas production at the Qatargas 4 LNG facility. Major construction is complete, on schedule, at the Pearl Gas-to-Liquids (GTL) plant, and commissioning for start-up is underway as planned."

In 2010, Shell engaged in a joint business venture with Brazilian company Cosan. The project will be financed by a $1.6 billion investment. Shell also signed contracts to develop the Majnoon and West Qurna fields in Iraq.

(BNO NEWS )