Major oil firms post gains

Shell, Statoil and Total announced strong Q2 results on Thursday, indicating a gradual industry uptick after years of sluggish activity.

Shell reported a 392% year-on-year increase in cashflow from operating activities during the quarter, while its income was reported at USD 1.55 billion, up 31% from the same period last year.

“Shell’s strong results this quarter show that we are reshaping the company following the integration of BG,” CEO Ben van Beurden said in a statement, adding that he would remain vigilant.

“The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control, namely capital efficiency, costs, new project delivery and divestments.”

Statoil posted USD 1.29 billion of adjusted earnings after tax, up from a loss of USD 28 million in Q2 2016, while Total said its quarterly adjusted net income had increased 14% year-on-year, settling at USD 2.5 billion.

Improved operational efficiency, better refining margins and oil prices 16% higher since last year have all contributed to the strong results, industry observers say.

“This demonstrates they have moved themselves to a new level of profitability at USD 50 oil,” Colin Smith, director of oil and gas research at investment bank Panmure Gordon, told Reuters.

Also on Thursday, Spain’s Repsol said its Q2 net income of EUR 367 million was up 79% compared to the same period in 2016.

Schlumberger, the world’s largest oilfield services provider, is among the few to report Q2 results in the red so far. The company posted a loss of USD 74 million last week. Major competitor Halliburton said on Monday that its quarterly adjusted income was USD 201 million.