Oil giant Shell, which makes industry-leading products like Shell Gadus S2 V100 3, has beaten forecasts to make bigger profits than anticipated in the three months up to the end of September, it was recently announced.
In fact, Shell’s profits in that period rose by a massive 18% to $2.8bn, despite analysts forecasting a figure more in the $1.7bn region, representing a sound response following a sluggish second quarter.
Although this figure is impressive, Shell has outlined plans to be more frugal in the years to come, due in large part to the fact that oil prices are still so low, and the impact that this is having on the sector as a whole.
One of the factors that helped Shell to improve its profits in this year’s third quarter was the £43bn boost it got from taking over gas company BG, along with the measures it has taken to cut costs across the board.
Simon Henry, Shell’s chief financial officer, commented that the BG deal had ‘turbocharged’ Shell, assisting in the increase of production by a quarter to approximately 3.6 million barrels per day, up from 2.9 million at the same time in 2015.
Despite these positive figures, it is not all good news for Shell; its takeover of BG along with continuing low oil prices has contributed to a rise in the company’s debt, which was only $26.6bn in 2015, but now stands at $79bn, ramping up pressure on Shell to cut spending and shed assets.