03 February 2011 10:42 [Source: ICIS news]
LONDON (ICIS)--Shell’s chemicals current cost of supplies (CCS) earnings surged 77% to $493m (€355m) during the fourth quarter of 2010, from $279m in the same three-month period in 2009, the Netherlands-headquartered oil and gas major said on Thursday.
The company said its chemicals CCS earnings compared with the fourth quarter of 2009 reflected improved realised chemicals margins, higher chemicals sales volumes, higher income from equity-accounted investments and lower operating expenses.
Chemicals sales volumes increased by 10% year on year in the fourth quarter to 5,297,000 tonnes, from 4,835,000 tonnes during the same period in 2009.
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Chemicals manufacturing plant availability was unchanged from the fourth quarter of 2009, at 95%, it added.
For the full year, chemicals CCS earnings surged to $1.51bn from $316m in 2009.
Chemicals sales volumes increased by 13% compared to the full year 2009, from 18,311,000 tonnes to 20,653,000 tonnes.
Chemicals manufacturing plant availability increased to 94%, from 92% in the full year 2009.
At group level, Shell’s fourth-quarter 2010 CCS earnings were $5.7bn, up from $1.2bn in the same quarter 12 months before. Full-year 2010 CCS earnings were $18.6bn, 90% higher than in 2009.
Revenues were at $100.7bn during the fourth quarter, up from $81.1bn during the same three months a year earlier. For the full year, revenues came in at $368.1bn, up from $278.2bn in 2009.
“Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals, and Shell’s production growth and cost performance,” said CEO Peter Voser.
“Fourth-quarter and full-year 2010 earnings were supported by higher oil prices and chemicals margins. However, our earnings were impacted by weak refining margins, pressure on certain regional natural gas prices, and volatility in Downstream marketing margins as a result of rising oil prices,” he added.
($1 = €0.72)
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