27 October 2011 08:42 [Source: ICIS news]
SINGAPORE (ICIS)--Shell said on Thursday that its third-quarter earnings from its chemical business more than doubled to $674m (€485m), compared with $315m in the same period a year earlier, partly because of higher realised chemical margins.
Chemicals sales volumes fell by 9% year on year to 4.83m tonnes in the July-September quarter, while its chemicals manufacturing plant availability fell to 90% compared with 94% in the third quarter of 2010, as a result of increased maintenance activities, the company said in a statement.
Shell’s current cost of supplies (CCS) earnings from its downstream operations, meanwhile, rose by more than four-fold to $1.48bn in the third quarter, from $325m in the same period a year earlier, it said.
This includes a net charge of $338m from identified items, the company said.
Taking out the net charge from identified items, the company’s downstream operations posted CCS earnings of $1.82bn in the third quarter, up by 25% year on year, it said.
"Downstream earnings excluding identified items increased compared with the third quarter 2010. Earnings reflected higher Chemicals earnings while Oil Products earnings were in line with the same period a year ago,” Shell said.
Shell’s refinery processing intake fell by 13% to 2.85m barrels of oil equivalent/day compared with the third quarter of 2010, mainly as a result of divestments and a refinery closure, the company said.
The company’s overall net profit more than doubled to $6.98bn in the third quarter from $3.46bn in the corresponding period a year earlier, while its CCS earnings excluding identified items were up by 42% at $7bn, it said.
For the first nine months of 2011, Shell’s downstream CCS earnings surged by 79% year on year to $4.53bn, including a net charge from identified items of $19m, the company said.
Shell’s net profit for the first nine months of 2011 surged by 83% year on year to $24.4bn, while its CCS earnings excluding identified items rose by 42% to $19.8bn, including a net gain of $4.55bn from downstream operations, it added.
($1 = €0.72)
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