Shell’s profit excluding one-time items and inventory changes rose to $7.3 billion, more than some analysts had forecast, from $6.3 billion in the first quarter of last year. The shares rose 3.2 percent in London on Thursday.
Peter Voser, the chief executive, said Shell was “making good progress against our targets” and that the portfolio of 26 projects Shell was developing would help it achieve its cash flow and production goals.
Asset sales are likely to generate about $4 billion this year, more than the $2 billion to $3 billion the company had estimated earlier. Shell sold $2.4 billion of assets during the first quarter alone, it said.
Shell started production at the Caesar/Tonga project in the Gulf of Mexico during the quarter and there was progress at the liquefied natural gas project in Australia. Together the two projects are expected to add about 40,000 barrels of oil equivalent per day at peak, Shell said. The flagship Pearl project in Qatar is on track to reach full capacity in the middle of this year, it said.
Shell benefited as an increase in the average oil price during the period helped offset a decline in natural gas prices. The company is seeking to expand its operations in East Africa’s natural gas market. It agreed Tuesday to buy Cove Energy, which is exploring large reserves of natural gas in Mozambique and Kenya, for about $1.8 billion after increasing an earlier bid.
Shell is the first among the European oil giants to report earnings. Total of France is due to report Friday and BP is to release earnings on May 1. Exxon Mobil is due to report its results later on Thursday.
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