Despite the recent overall drop in oil prices, Shell enjoyed a significant increase in profits during the third quarter.
A combination of reduced exploration overheads and more profitable oil production was credited for the rise in returns.
The company’s core profit, which omits one-off products it manufactures, rose to £3.6bn during the three month period up to the conclusion of September, a 31% increase on the previous year.
However, there was a decline of five percent in Shell profits compared with the second financial quarter, which has been attributed to the reduced overall price of oil and lower levels of production.
The chief executive of Shell, Ben van Beurden, stated that:
“The recent decline in oil prices is part of the volatility in our industry. It underlines the importance of our drive to get a tighter grip on performance management, keep a tight hold on costs and spending, and improve the balance between growth and returns.”
The overall figures show that the company remains in a healthy financial condition, and its lubricants like Shell Omala S2 G 320 and Shell Gadus S2 V100 3 are helping to keep it at the forefront of the oil industry.
Shell confirmed that a rise in the income generated from gas, new forms of production leading to improved margins, and a reduction in the costs of surveying had ensured an increase in profits from its production and upstream exploration arm.
Furthermore, the company’s share price also moved upwards, rising to £23.38, a one percent increase on its previous price.