European oil giant Royal Dutch Shell Plc. (RDS-B, RDSB.L, RDSA.L,RDS-A) Thursday said third-quarter net profit declined from the prior year, amid lower production. But, adjusted earnings on a current cost of supplies basis, an important metric for energy companies, showed a significant increase, benefiting from improved Downstream and Upstream results.
Separately, the company announced the appointment of Charles Holliday as Chairman.
The company's earnings, on a current cost of supplies or CCS basis that strips out inventory changes, climbed 24 percent to $5.3 billion.
CCS earnings excluding identified items were $5.8 billion, while it totaled $4.5 billion for the third quarter 2013.
Income attributable to the company's shareholders slipped to $4.463 billion from $4.677 billion last year. Earnings per share dropped to $0.70 from $0.75.
The latest results reflected a net charge of $581 million, compared with a net charge of $209 million in the prior year.
Upstream earnings excluding items climbed 25 percent to $4.343 billion. The results were supported by new, high-margin production despite the effect of lower oil prices and volumes overall.
Downstream earnings excluding items more than doubled to $1.793 billion, on higher realised refining margins, reflecting the industry environment and improved operating performance.
Total revenue and other income decreased to $109.825 billion from $118.258 billion in the previous year.
Revenue declined to $107.851 billion from $116.513 billion in the prior year.
Oil and gas production decreased 5 percent to 2,790 thousand boe/d. Excluding the impact of divestments, Abu Dhabi license expiry, PSC price effects, and security impacts in Nigeria, production volumes were 2 percent higher from last year.
Oil products sales volumes slid 2 percent and Chemicals sales volumes decreased 4 percent from last year.
Shell's Chief Executive Officer Ben van Beurden said, "Our results today show that we are delivering on the three priorities I set out at the start of 2014 - better financial performance, enhanced capital efficiency and continued strong project delivery."
Further, Shell announced an interim dividend in respect of the third quarter of $0.47 per A ordinary share and B ordinary share, an increase of $ 0.02 on the equivalent US dollar dividend for the same quarter last year.
Shell also announced the appointment of Charles Holliday as Chairman with effect from the conclusion of the 2015 Annual General Meeting, subject to his re-appointment as a director of the company by shareholders at the AGM.
Holliday will succeed Jorma Ollila who will step down from the Board with effect from the conclusion of the 2015 AGM having served as Chairman for nine years.
Chad Holliday was appointed as a Non-executive Director of the company with effect from September 2010, and is currently Chairman of the Corporate and Social Responsibility Committee and Member of the Remuneration Committee.
He was Chief Executive Officer of DuPont from 1998 to 2009, and Chairman from 1999 to 2009.
The stock was down 0.1 percent in early trade at 2,233 pence.
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