July 28, 2011, 3:06 a.m. EDT
By Alexis Flynn
LONDON -(MarketWatch)- Royal Dutch Shell PLC (RDSB.LN) Thursday posted a 56% rise in adjusted profit for the second quarter, buoyed by higher oil prices and the first contributions from its recently delivered flagship projects in Canada and Qatar.
“Our second quarter 2011 earnings were higher than year-ago levels, driven by increased energy prices and Shell’s operating performance,” said Chief Executive Peter Voser.
The Anglo-Dutch energy company said the clean current cost of supplies, a keenly-watched figure that strips out gains or losses from inventories and other non-operating items, was $6.55 billion in the three months ended June 30, compared with $4.20 billion in the second quarter of 2010. This was roughly in line with expectations of $6.54 billion in a Dow Jones Newswires poll of twelve analysts.
Total oil and gas production was 3.04 million barrels of oil equivalent per day, a decline of 2.1% on the year due to seasonally weak natural gas demand and the cumulative effect of some small production asset sales. Analysts were expecting production to decline 0.4%.
Net profit for the quarter almost doubled to $8.66 billion from $4.39 billion a year ago.
Group revenues were $121.26 billion, compared with $90.57 billion in the second quarter of 2010.
Diluted earnings per share were 1.39 cents compared with 72 cents the previous year.
Shell B shares closed at 2273 pence Wednesday.