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Shell outshines BP in the third quarter, thanks to BG

The market took sharply diverging views of progress from London's two oil majors
November 1, 2016

On any given day, the share price movements of Royal Dutch Shell (RDSB) and BP (BP.) tend to move in tandem with expectations for the oil price. Tuesday 1 November, when both of London's oil majors announced third-quarter results, proved an exception.

IC TIP: Buy at 2,200p

Shell's shares rose 4 per cent on news that production in the three months to September had increased by a quarter to 3.6m barrels of oil equivalent a day, thanks to strong output from the assets acquired from BG. This resulted in a 120 per cent increase in net operating cash before tax, which together with lower impairment charges for the period meant underlying profit of $2.8bn (£2.3bn) for the period, smashing analyst expectations.

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