Softening oil and gas prices hampered Royal Dutch Shell's (RDSB) third-quarter performance. Adjusted net profits, on a current cost-of-supplies basis, fell by 6 per cent on the comparable period in 2011 to $6.56bn (£4.07bn), while operating cash flow of $9.48bn was down by nearly a fifth.
The results were somewhat flattered by a surprise lift in downstream refining margins, but the benefit is likely to be shortlived. And, for now at least, the Anglo-Dutch giant is struggling to boost output. Even after discounting the effects of the production shut-ins at its Nigerian facilities, third-quarter production ticked up by just 1 per cent. Nevertheless, by midway through this decade, the scale benefits of Shell's extensive capital expenditure program should become apparent.
