Royal Dutch Shell shares rose over 3 percent on Tuesday reporting better-than-expected results for the third quarter.
The company reported an 18 percent rise in third quarter profit on Tuesday, with underlying profits rising to $2.8 billion. Net income also rose to $2.8 billion, beating analysts’ expectations of $1.71 billion.
Shell chief executive Ben van Beurden said:
“Shell delivered better results this quarter, reflecting strong operational and cost performance,” he said. “But lower oil prices continue to be a significant challenge across the business and the outlook remains uncertain.”
Shell’s Integrated Gas division saw a slight increase in profits to $931 million, with its refining and trading division falling to $2.01 billion, from $2.6 billion a year ago.
The figures were a welcome improvement on their disappointing second quarter results, which had been affected by outgoings related to its acquisition of BG in February. Shell missed expectations by around 50 percent, sending shares plunging.
Shell (LON:RDSA) are currently trading up 3.41 percent at 2,108.00 (1007GMT).
BP profits fall 50 percent
However, much of the sector is still struggling with the low price of oil, as seen by BP reporting a near 50 percent fall in profits on Tuesday.
Underlying profits fell to $933 million, down from $1.8 billion a year earlier.
BP said in a statement that it was affected by a “weaker price and margin environment”, with chief financial officer Brian Gilvary commenting:
“We continue to make good progress in adapting to the challenging price and margin environment.
“We remain on track to rebalance organic cash flows next year at $50 to $55 a barrel, underpinned by continued strong operating reliability and momentum in resetting costs and capital spending.”
FTSE 100 up