LONDON: Royal Dutch Shell said on Thursday that net profit almost tripled to more than $4 billion in the third quarter, helped largely by recovering oil prices.
Profit after tax rocketed to $4.087 billion in the three months to September from $1.375 billion in the third quarter of 2016, the Anglo-Dutch energy giant said in a statement.
“Earnings benefited mainly from stronger refining and chemicals industry conditions, increased realized oil and gas prices and higher production from new fields, offsetting the impact of field declines and divestments,” the group said.
Revenues jumped around 23 percent to $75.83 billion in the quarter.
Shell is in the process of selling off assets worth $30 billion over two years up to 2018 — and has since offloaded more than two-thirds of that amount.
It is making investments of $25 billion this year, down on 2016 when Shell bought smaller British peer BG Group in a move to strengthen its position in the liquefied natural gas market.
Oil prices are meanwhile in recovery mode after tumbling in recent years, boosting energy companies around the world.
Shell said that stripping out changes to the value of its oil and gas inventories, profit soared 47 percent to a better-than-expected $4.1 billion in the quarter.
Shell shares were up 0.2 percent to 2,364 pence in morning trades on London’s benchmark FTSE 100 index, which was 0.1 percent higher overall.
“With Brent (North Sea crude oil) back at $60 … things are definitely looking up again for Shell” and others, said Neil Wilson, analyst at traders ETX Capital.
“Shell has also worked hard on disposals and cost cutting... Now leaner, it looks in good shape to capitalize on higher Brent prices.”
The benchmark oil contract was down 11 cents at $60.38 per barrel on Thursday.
Royal Dutch Shell third-quarter profit almost triples
Royal Dutch Shell third-quarter profit almost triples
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
