Full-year profits soar to four-year high

Andrey Rudakov | Bloomberg | Getty Images

Royal Dutch Shell products in Torzhok, Russia.

Oil giant Royal Dutch Shell reported better-than-expected full-year earnings on Thursday, as deep cost cuts introduced after the 2014 energy market downturn filtered through.

Full-year profits jumped 36 percent to $21.4 billion in 2018 — with cost savings helping the Anglo-Dutch company record its highest annual profits since 2014.

Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $5.7 billion. This compared to a company-provided analyst consensus of $5.28 billion for the final three months of 2018, according to Reuters.

“Shell delivered a very strong financial performance in 2018, with cash flow from operations of $49.6 billion, excluding working capital movements,” Royal Dutch Shell CEO Ben van Beurden, said in a statement published Thursday.

“We will continue with a strong delivery focus in 2019, with a disciplined approach to capital investment and growing both our cash flow and returns. Our strategy to deliver a world-class investment case is working,” he added.