Bankers love to speak about their buying and selling operations, oil firms much less so. But these little-discussed companies rode to the rescue of Royal Dutch Shell and Whole within the second quarter.
Buying and selling in oil, fuel and different petroleum merchandise helped the European built-in oil majors report better-than-expected numbers Thursday. Web income have been hit laborious by low costs and large noncash write-downs of petroleum belongings, however these have been properly flagged.
Anglo-Dutch Shell generated $2.6 billion in money circulate from operations, reconfirmed its recently-lowered dividend of $0.16 and wrote off $16.Eight billion of belongings in Australian fuel, European refineries and higher-cost unconventional wells. The shares fell barely in early buying and selling. French vitality large Whole reported $3.5 billion in money circulate from operations, confirmed its €0.66 ($0.78) quarterly dividend, and wrote down $8.1 billion, principally of “stranded” Canadian oil sands belongings. Its share value rose barely, doubtless on reduction the dividend was maintained.
These are respectable outcomes for a really robust quarter. Oil prices plumbed new depths in an ideal storm: International provide elevated as Russia and Saudi Arabia began a value battle in March, after which demand plummeted as Covid-related lockdowns unfold past Asia.