Royal Dutch-Shell’s Profit Rises 18.4%
Royal Dutch-Shell Group of Cos., the world’s biggest oil concern, said Wednesday that its net profit rose 18.4% in the first quarter from a year ago.
Royal Dutch-Shell said earnings from its marine, marketing and chemicals businesses improved but that exploration and production earnings were down due to the combination of lower crude oil prices, reduced natural gas sales and the strengthening of sterling against the dollar.
It said its net profit increased to 822 million pounds in the first three months of 1987 from 694 million pounds in the same period a year ago.
Using average rates of exchange over the respective quarters, that worked out to $1.48 billion from $1.07 billion in the first three months of 1987.
Special items affecting the latest quarterly earnings were a gain of 106 million pounds, or $200 million, from the sale of a Hong Kong property and estimated after-tax inventory losses of 78 million pounds, or $147 million.
Royal Dutch-Shell, which is based in the Hague, Netherlands, and in London, said sales fell 5.2% to 13.63 billion pounds, or $24.9 billion, from 14.37 billion pounds.