Shell Sticking With Spending Discipline As 2018 Profits Soar

Royal Dutch Shell said to would stick to spending discipline this year after 2018 profits jumped by more than a third to $21.4 billion, their highest since 2014. The Anglo-Dutch oil company also reported a sharp rise in cash generation, in a further sign that cost savings since the 2014 oil market downturn are filtering into its operations.A strong performance in the fourth quarter was driven by higher oil and gas prices, year-on-year, as well as a stronger contribution from crude oil and liquefied natural gas (LNG) trading. “The cash flow is incredible,” said Rob West, analyst at Redburn. “It’s heavily flattered by downstream inventory liquidation, but it still squashes any lingering worries about debt and dividend coverage.” Investors were expected to turn their focus to the company’s growth as oil and gas reserves declined for a third year and production largely stagnated.Shell is developing a number of new projects around the world, including in the Gulf of Mexico and Brazil and Chief Executive Officer Ben van Beurden told reporters that Shell would look to increase its footprint in onshore U.S. shale production, particularly in the Permian Basin...

 

https://www.reuters.com/article/us-shell-results-idUSKCN1PP0OR?utm_campaign=trueAnthem:+Trending+Content&utm_content=5c53343804d3011f64b34a2c&utm_medium=trueAnthem&utm_source=twitter
 

 

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good for them

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