Shell, BP Hit Record Profits on Soaring Oil Prices

  on

Royal Dutch Shell and BP Plc, the two largest public oil companies in Europe, reported record profits on Tuesday for the first three months of the year as oil prices reached new highs.

Shell and BP saw their net profit for the quarter rise 25 percent and 63 percent respectively.

Investors were pleased with the results, sending shares of Shell and BP up 5.3 percent and 6.0 percent in London respectively.

The firms saw their biggest gains in oil exploration and production as their refining businesses stayed mostly flat.

Shell, the larger of the two reporting today, said it earned $9.08 billion for the quarter from $7.28 billion a year earlier. Its revenue grew 56 percent to $114.3 billion.

Its average daily output of oil grew slightly to 3.52 million barrels per day, from 3.51 million a year ago.

Meanwhile, BP Plc said net profit grew 63 percent to $7.62 billion from $4.66 billion. Total revenue rose 43.8 percent to $62 billion.

Average daily gas and oil production in the quarter was 3.91 million barrels per day, unchanged from a year ago.

Shell shares gained 5.3 percent, or 102 pence to 2,043 pence. BP shares rose 5.6 percent, or 34.50 pence to 613 pence.

American depositary receipts of Shell were up $3.47, or 4.52 percent to close at $80.19. ADRs of BP rose $3.20, or 4.64 percent to close at $72.18.

Join the Discussion