Royal Dutch Shell (LON: RDSB) announced on Thursday that their profit had more than doubled over the course of 2017, with a 184 percent increase in income after benefiting from rising oil and gas prices.
Shareholders earnings increased in the fourth quarter of 2017 to $4.3 billion by 140 percent compared to $1.8 billion in the same period of 2016. Income rose from $12.98 billion in 2017 compared to $4.58 billion in 2016.
Despite the company taking a $2 billion tax charge with Trump’s new tax reforms, which are expected to benefit them in the long run, Shell enjoyed a boost due to a recovery in oil prices. By the end of 2017, world oil prices had an increase by 15 per cent trading at $60 per barrel.
“2017 was a year of strong financial performance for Shell. The strong financial delivery came from each of our businesses in a volatile oil price environment,”said CEO Ben van Beurden.
Cash flow from operations around $7.3 billion, or $8.4 billion excluding working capital movements.
Shell also reported a dividend of $0.47 per share compared to the fourth quarter in 2017. From now on, the dividend will be paid entirely in cash, following the company’s announcement to cancel the scrip dividend.
“We strengthened our financial framework during the year through an $8 billion reduction in our net debt, while our increased free cash flow generation gave us the confidence to cancel the scrip dividend programme in the fourth quarter, in line with what we said previously,” said Royal Dutch Shell’s CEO.
The figures announced by the oil giant showed stronger earnings than predicted by analysts, however, cash inflow was weaker than expected, reflected by the higher tax payments and shifts in the trading business.
“We enter 2018 with continued discipline and confidence, committed to the delivery of strong returns and cash,” said van Beurden.
Share prices were down 1.26 percent, trading at 2,464.46p, as of 11:00 (GMT).