Shell swings to $390m chemicals profit in second quarter

29 July 2010 07:58  [Source: ICIS news]

LONDON (ICIS)--Shell's second-quarter chemicals earnings were $390m on a current cost of supply basis, compared with a loss of $18m in the same period of last year, on higher volumes, margins and operating rates, the oil giant said on Thursday.

Shell said its chemicals earnings, however, were partly offset by reduced equity investment income and higher operating costs. The second-quarter outcome compared with earnings in the first quarter of $313m.

“Chemicals sales volumes increased by 18% compared to the same quarter last year,” Shell said. “Chemicals manufacturing plant availability increased to 95%, some seven percentage points higher than in the second quarter 2009,” it added.

Second-quarter downstream earnings for the group were $1.47bn from a loss for the segment in the second quarter of 2009 of $275m.

Group earnings in the latest quarter were $4.53bn from $2.34bn in the second quarter of last year and $4.90bn in the first quarter of 2010.

Shell said it had made annualised savings of more than $3.5bn in its downstream businesses under its Transition 2009 restructuring programme, exceeding its target by around 15% and six months ahead of schedule. About 7,000 employees will leave the group as a result of the changes, some 18 months earlier than planned.

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By: Nigel Davis
+44 20 8652 3214

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