Helped by rising oil prices, the Royal Dutch Shell Plc has managed to nearly increase its profit by five folds, a statement issued by the company said on Thursday.
The company reported Q4, 2010 earnings at £3.5 billion ($5.7 billion) – on current cost of supplies (CCS) basis, a near five-fold jump from last years $1.2 billion – when its refining margins came under heavy pressure.
The net profit from continuing operations (excluding non-operating and one off items) was reported at $4.1 billion, less than Thomson Reuters average forecast of $4.85 billion. Rival Chevron reported a 73 percent hike in net income while Exxon Mobil Corp reported a better-than-expected rise of 53 percent in net profits on Monday.
Shell’s biggest rival in the UK market BP Plc had reported a 34 percent growth in Replacement Cost (RC) net profit. The quarterly result would have gone up marginally if the gain of $1.4 billion from assets sales were excluded.
Replacement Cost (RC) and Continuing Cost of Supplies (CCS) nullify the unrealized gains on inventory and hence are adjusted to be compared with US Net Income.
The Q4 US crude price in 2010 was averaged at $85 per barrel while it was recorded at $76 a barrel over the same period last year.