Royal Dutch Shell on Thursday came up announcing better-than-expected full year earnings for a deep cost cutting strategy, adopted by the oil giant after 2014 energy market slump, filtered through its operations.
Anglo-Dutch company, with the help of cost saving plans, recorded its highest annual profits since 2014, when its full-year profits jumped by 36 percent and hit $21.4 billion mark in 2018.
Excluding identified items, net income attributable to shareholders on a current cost of supplies (CCS) basis came in at $5.7 billion, balanced to a company-provided analyst consensus of $5.28 billion for the last quarter of 2108, according to Reuters.
Financial performance delivered by the Shell in 2018 remained very strong with the help of cash flow of $49.6 billion from operations, excluding working capital activities, said Ben van Beurden, CEO of Royal Dutch Shell, in a statement published on Thursday.
The company’s strategy to become an investment of world-class level is working and in 2019, company will continue to be focused on delivering strong results by growing returns and cash flows and also by making disciplined capital investments, CEO added.
Shell came up performing robustly in the final three months of the year as oil and gas prices risen year-on-year and liquefied natural gas (LNG) trading also strongly contributed toward the boosted performance.
The company this year succeeded to rise its oil and gas production to 3.666 million barrels of oil equivalent per day, , though the rise was slightly up from that of last year largely because of the disposal effect s of which were offset by the new fields came online this year.
A working capital movement of $9 billion boosted the cash flow from operations in the fourth quarter, which rise to $22 billion whereas yearly figure for the same came to $53 billion.