Business
Shell raises its dividend as profits increase
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By Ron Bousso and Shadia Nasralla
LONDON (Reuters) – Royal Dutch Shell’s profits leapt to $3.23 billion in the first three months of the year and the energy company raised its dividend as planned but warned that the outlook remained uncertain due to the coronavirus pandemic.
Shell’s adjusted earnings were above an average analyst forecast of $3.125 billion and also ahead of earnings of $2.9 billion last year, boosted by assets sales as well as higher oil and liquefied natural gas (LNG) prices, it said on Thursday.
Sales of oil and gas assets in countries including Nigeria, Canada and Egypt added $1.4 billion to first-quarter profits.
Shell’s London-listed shares were up 1.2% at 0736 GMT, outperforming a 1% gain for the broader European energy index.
“The quarter proves without doubt that Shell’s earnings power is intact,” Bernstein analyst Oswald Clint said in a note.
Shell said its fuel sales fell 13% in the first quarter due to further lockdown measures and the impact of a Texas storm in February, saying there was still “significant uncertainty” over the outlook for demand in the second quarter.
Graphic: Shell’s earnings, https://graphics.reuters.com/SHELL-RESULTS/yzdpxbzadpx/chart_eikon.jpg
The Anglo-Dutch company raised its dividend by 4% as planned, the second increase since its slashed its payout by two-thirds at the start of last year due to the coronavirus pandemic.
Shell’s cash flow from operations, a key performance metric, rose to $8.3 billion from $6.3 billion, helping to reduce its debt to $71.3 billion.
Shell wants to get its net debt below $65 billion before starting to repurchase shares, part of its strategy to shift to low-carbon energy in the coming decades.
Norway’s Equinor also raised its dividend and posted a rise in first-quarter profits on Thursday.
Shell’s oil and gas trading operations, the world’s largest, did not boost revenue significantly in the quarter, unlike rival BP which reported “exceptional” revenue on Tuesday from its natural gas trading business.
Shell said its LNG trading was significantly below average in the quarter as a result of credit provisions following the storm in Texas, which triggered a massive state power failure and left millions of people without light, heat and water.
Shell’s fuel sales fell in the first quarter to 4.16 million barrels per day (bpd) but were expected to rise to an average of 4.5 million bpd in the second quarter.
Oil and gas production at Shell’s upstream operations fell 9% from a year ago to 2.46 million barrels of oil equivalent per day (boed) due to maintenance and disposals.
Output was forecast to decline again to 2.25 million boed in the second quarter due to lower seasonal gas demand and further asset sales.
Graphic: Shell’s oil and gas production, https://graphics.reuters.com/SHELL-RESULTS/nmovaagdnva/chart.png
(Reporting by Ron Bousso; Editing by David Clarke)
Business
Gas prices expected to rise 14 cents on Thursday
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Drivers are bracing for a double-digit spike at the gas pumps on Thursday, as the price is expected to rise 14 cents at midnight.
Roger McKnight, chief petroleum analyst withEn-Pro International Inc., tells CityNews the price at gas pumps is set to rise to 178.9 cents/litre at local stations. The price as of Wednesday is 164.9 cents/litre.
The last time gas prices were this high was back in August 2022.
McKnight says the spike is due to price increases for wholesale gas and only applies to gasoline. He adds the price for diesel will increase by 0.4 cents.
Earlier this month, the price rose to its highest levels in six months following the implementation of the federal carbon price, also referred to as the carbon tax.
That saw the carbon tax on gasoline go up by 3.3 cents per litre, while diesel increased by 4.1 cents per litre.
Business
Rupture on TC Energy's NGTL gas pipeline sparks wildfire in Alberta – The Globe and Mail
A section of TC Energy’s TRP-T NGTL gas pipeline system in Alberta ruptured and caught fire on Tuesday, sparking a wildfire in a remote area, the company said.
“An initial ignition of natural gas at the rupture site is now extinguished. We are working to support Alberta Wildfire in their response to contain a secondary fire,” the company said in a statement on its website.
TC said there were no injuries and it was working closely with first responders in the region.
How fire broke out at the TC gas pipeline near Edson, Alberta
The fire broke out about 40 km (25 miles) northwest of Edson, Alberta, in Yellowhead County. Canadian broadcaster Global News said there was a plume of flames and smoke visible from many kilometres away.
The Canada Energy Regulator (CER) said initial investigations indicated a rupture in a gas pipeline caused the fire, which was under control.
TC Energy said it has isolated and shut down the affected section of the NGTL system, and the remainder of the system is operating normally with no commercial impact.
The CER said it is sending inspectors to the area to monitor and oversee the company’s response and determine the impact of the incident.
NGTL is TC Energy’s natural gas gathering and transportation system that transports gas produced in Western Canadian Sedimentary Basin (WCSB) to markets in Canada and United States.
Business
Gas prices in GTA expected to rise 14 cents on Thursday – CityNews Toronto
Drivers in the GTA are bracing for a double-digit spike at the gas pumps on Thursday, as the price is expected to rise 14 cents at midnight.
Roger McKnight, chief petroleum analyst with En-Pro International Inc., tells CityNews the price at gas pumps is set to rise to 178.9 cents/litre at local stations. The price as of Wednesday is 164.9 cents/litre.
The last time gas prices were this high was back in August 2022.
McKnight says the spike is due to price increases for wholesale gas and only applies to gasoline. He adds the price for diesel will increase by 0.4 cents.
Earlier this month, the price rose to its highest levels in six months following the implementation of the federal carbon price, also referred to as the carbon tax.
That saw the carbon tax on gasoline go up by 3.3 cents per litre, while diesel increased by 4.1 cents per litre.
With files from John Marchesan of CityNews
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