Oil giant Royal Dutch Shell will deliver another profits record when it reports full-year results today.
Soaring oil prices mean analysts are expecting a profits figure in the region of $24.2bn (€18.6bn), which exceeds Shell’s previous best of €22.94bn (€17.6bn), set last year.
But the performance in the fourth quarter, when profits are likely to be marginally lower at around $5bn (€3.83bn), will carry the most interest for investors. Oil prices have eased by 30% since hitting $77 (€59) in August, meaning Shell’s production record will be brought into focus. It is likely that output fell marginally in the year, following attacks on its production facilities in Nigeria.
Like other companies, Shell is finding it tougher to replace reserves – a challenge made more difficult over the long term by the loss of some of its interests in the Sakhalin-2 gas project to Russian monopoly Gazprom.
In light of that move, it is expected that Shell will offer further guidance on its medium-to-long-term output prospects. Analysts believe that deal-making will play a key part in plans to bolster production performance.