Royal Dutch Shell has announced an increase in its Q1 profits, with those on a cost of supplies basis up 142% to $3.8bn on the same quarter last year.
Shell’s results follow a series of upbeat Q1 results from top oil producers like Total, ExxonMobil and BP.
Shell posted its worst financial result in a decade last year when oil prices dipped below $28 per barrel in the same quarter. The recent recovery in the oil price to the $50 range has since allowed Shell to recover much of its profitability.
Shell, like many other companies in the oiler sector, is also now benefiting from the cost-cutting efforts that became necessary following the oil price collapse. Investment was deferred and several jobs were lost, but the company now appears better able to weather lower oil prices.
This sentiment was echoed by Jessica Uhl, Shell’s chief financial officer, who said:
“We want to generate strong returns through these different price environments. That’s what we’re focusing on. Prices move – we can’t control prices – but what we can control is how we run this company.”
Shell, which produces hydraulic oils like Shell Tellus S2 M 32, said the rise in profits was mostly due to its gas and oil production, but its chemical business also played a role. The company has recently been adapting its business following the $54bn merger with BG Group. This includes selling $30bn worth of assets over three years, as seen in the recent sale of its North Sea oilfields to Chrysaor.