Shell Boosts Profit By 33% Amid Asset Sale
Oil giant Shell has seen its share price surge after it reported a 33% increase in quarterly profit.
The Anglo-Dutch company, which is the biggest FTSE 100 firm, beat forecasts to earn £3.6bn in the three months to the end of June.
Shares were up almost 4% in mid-morning Thursday trades.
The profit rise comes after it increased production and was able to sell product at a higher price.
It now plans to sell off certain assets and be more selective about future projects, following a profit warning last January.
The company has already sold off around £5bn in assets and increased output of its deepwater Mars B project in the Gulf of Mexico.
"I am determined to get a tighter grip on business performance management in the company, and improve the balance between growth and returns," CEO Ben van Beurden said.
"Sharper accountability in the company means that we are targeting our growth investment more effectively, focusing on areas of the business where performance improvement is most needed."
The oil company also raised its quarterly dividend and said the value of its share buybacks and dividends for 2014 and 2015 would exceed $30bn (18bn).
The Shell share surge is good news for UK pension holders, as most major funds have holdings in the company.
Global oil companies including Shell have struggled to boost their production in recent years, due in part to declines at existing fields and delays with new projects.
Shell's results follow on from rival BP's results earlier this week, when it reported a profit for the quarter of $3.635bn (£2.14bn).
BP warned that sanctions against Russia could have an "adverse impact" on future earnings, as it owns 19.75% of Russia's largest oil company Rosneft, which account for almost 9% of its profits.