Third quarter figures

BP takes price hit; Shell up on higher output

ShellOil giants BP and Shell unveiled third quarter figures with the former taking a further hit from the lower oil price and higher costs, while the latter benefited from increased output.

BP reported underlying profits of $933m for the third quarter – about half of the $1.8bn it earned in the same period last year.

This was driven by the slump in global oil prices, and one-off expenses. The firm said costs will be $7bn lower this year than in 2014.

Chief financial officer Brian Gilvary said: “We continue to make good progress in adapting to the challenging price and margin environment.”

Royal Dutch Shell said increased output had contributed to an 18% rise in its third quarter profits.

Current cost of supplies (CCS) earnings excluding identified items came in at $2.8bn (£2.28bn), up from $2.4bn for the same time last year.

Chief executive Ben van Beurden said: “Shell delivered better results this quarter, reflecting strong operational and cost performance. But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.

“The integration of Shell and BG is now essentially done and has been completed well ahead of plan. It’s been an important catalyst for the significant and lasting changes we are making to the company’s working practices, cost structure and portfolio.

“In parallel with the integration, we have been managing the company through the down-cycle by reducing costs and investment levels, while executing our asset sales plans and starting up new projects.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.