Oil major Shell earns $7.28 billion in first quarter | WPN World People News

Energy giant Royal Dutch Shell Thursday said "strong" oil prices and rising output had helped the company to register a 16 per cent hike in its profits.

The earnings jumped to $7.28 billion in the first three months of 2012 - up 11 per cent on the $6.92 billion the firm made a year ago.

"Shell's first quarter 2012 earnings increased from year-ago levels through a combination of improved operating performance, increased upstream volumes and strong oil prices," Shell Chief Executive Peter Voser said.

The total revenue for the first quarter was $119.9 billion, up 9 per cent on a year earlier.

"We are implementing our strategy by improving near-term performance, delivering a new wave of production growth and maturing the next generation of growth options for shareholders," Voser said.

He added that asset sales this year were likely to total more than $4 billion compared with its earlier estimate of $2-$3 billion. But he didn't specify where or what assets would be sold.

Shell warned that oil prices would be volatile in the coming months. "Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events."

The surge in oil and gas giant's sales and profits comes days after Shell announced it would be buying Africa-focused Cove Energy for $1.8 billion in a bid to get access to East Africa's huge gas reserves.

Total oil and gas production for Shell was 3.552 million barrels of oil equivalent per day, an increase of about 1.4 per cent on the year.

Shell's shareholders also received a 2.4 per cent increase in their first-quarter dividend from last year, the company said.

Source: Europe News.Net