26 July 2012 08:32 [Source: ICIS news]
LONDON (ICIS)--Shell’s second-quarter cost of current supplies (CCS) earnings from its downstream operations fell by 28% year on year to $1.36bn, the Anglo-Dutch major said on Thursday.
Downstream earnings included a net gain of $64m (€52m) from identified items. Downstream earnings for the second quarter of 2011 included a net gain of $802m.
Taking out the net gain from identified items, the company’s downstream operations posted CCS earnings of $1.30bn in the second quarter, a rise of 20% year on year, Shell said.
“Downstream earnings excluding identified items compared with the second quarter 2011 benefited from higher realised refining margins and lower operating expenses, partly offset by lower contributions from trading and lower chemicals earnings,” Shell said. “Marketing margins were lower, mainly due to a reduced portfolio following divestments.”
The company that added chemicals sales volumes increased by 3% compared with the same quarter last year, mainly because of improved operational performance, partly offset by reductions in European capacity.
“Chemicals manufacturing plant availability was 89% compared with 87% in the second quarter 2011,” it added.
Group second-quarter 2012 CCS earnings, excluding identified items, was $5.72bn, compared with $6.55bn in the second quarter of 2011, a fall of 13%, while income attributable to shareholders in the quarter fell by 53% year on year to $4.06bn.
“We are moving forward in volatile times. Our profits have fallen with energy prices, but our growth strategy is delivering to the bottom line,” said Royal Dutch Shell CEO Peter Voser.
“Shell’s second-quarter 2012 earnings declined from year-ago levels, with weaker oil and North American gas prices offsetting the benefit of increased upstream volumes and improved refining margins,” he added.
“Looking further into the future, Shell is following a deliberate strategy to bring more choice into the company’s next tranche of investment decisions, generating a larger range of new investment choices and growth pathways. Capital efficiency is an important part of Shell’s approach, with on-going actions to sell non-core positions, to form strategic partnerships and to add new growth positions,” Voser said.
($1 = €0.82)
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