Shell to unveil profit boost from soaring crude prices
Brent crude has hit $71 a barrel for the first time in more than three years, boosted by supply curbs from oil cartel Opec, a record run of declines in US crude inventories and a weaker US dollar.
This has helped oil majors such as Shell and BP emerge from an extended slump which saw Brent fall as low as 27.26 in January 2016.
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Hide AdShell reported a 47% jump in adjusted earnings to $4.1 billion (£3.9bn) in the third quarter, thanks to the oil price rally.
And analysts are expecting more cheer as they predict Thursday’s annual results will show Shell’s adjusted earnings shooting up to $15.7bn (£11bn) from $7.2bn (£5bn) a year earlier.
Fund management experts at Hargreaves Lansdown recently praised Shell’s tactics since the oil price rout in 2014, including an aggressive cost-cutting drive and a $30bn (£21bn) divestment initiative.
They said: “This has left the group much more strongly cash-generative and reinforced Shell’s dividend-paying capabilities.