It is hard to look past Royal Dutch Shell Plc (LON:RDSB) and its results, nonetheless, there were several compelling narratives in the oil and as sector.
Shell chief executive Ben van Beurden described a “strong financial performance” as the oil major reported fourth quarter and full year results for 2017.
Income attributable to investors rose by 147% (year-on-year) in the final three months of 2017, at US$3.8bn, though the figure was some way below the third quarter figure of US$4.08bn. For the full year, the income metric amounted to US$12.97bn which represents a 184% improvement from 2016.
CCS earnings (the oiler's preferred earnings metric) came in at US$3.08bn for the quarter, up 199% from the US$1.03bn for the 2016 comparative, meanwhile, the full year number was up 242% at US$12.08bn. The corresponding earnings per share figure stood at US$1.47 for 2017, up substantially from the 45 US cents reported for 2016.
Free cash flow was measured at US$6.6bn for the quarter, up from US$5.74bn in 2016, and the full year figure amounted to US$27.6bn. As expected, Shell has maintained its dividend at 47 US cents for the quarter, and US$1.88 per share for the full year.
BP Plc (LON:BP), which releases its financials next week, on Wednesday unveiled two new discoveries in the North Sea (both wells were drilled in summer 2017).
The Capercaillie well, in the Central North Sea, made a light oil and gas-condensate discovery which could be tied into existing infrastructure. In the West of Shetland area, the Achmelvich well discovered oil and it is now being evaluated.
“These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050,” said Mark Thomas, BP president for the North Sea.
West of Shetland neighbour and investor favourite Hurricane Energy Plc (LON:HUR) congratulated BP on its latest success in the region. Those following Hurricane will be hoping there’s a positive omen in the BP news – as the company is taking the same rig for a drill programme later this year.
Elsewhere, offshore Nigeria, AIM-quoted Lekoil Ltd (LON:LEK) told investors that an independent technical study of the OPL 325 asset, offshore Nigeria, has revealed the potential for some 5.7bn barrels of oil in place.
The study, by specialist Lumina Geophysical, identified a total of eleven prospects and leads in the area which straddles the western Niger delta. Lumina focused primarily on the Paleocene section within the block, and it generated new structural and stratigraphic maps based on 3D seismic data.
Lekoil intends to carry out a detailed ‘prospect/lead risking study’ which is expected to be followed by a farm-down process to bring in a new partner for the 62% owned asset.
“This independent report underlines our belief in the prospectivity of this asset that was part of our original Dahomey Basin study,” said Lekan Akinyanmi, Lekoil chief executive.
SDX Energy Inc (LON:SDX) told investors it has now spudded the KSS-2 development well at the Sebou permit in Morocco. It is the sixth well in a nine well campaign, and it is expected to take between 10 and 15 days to drill. If the well is a success, it is expected to be tested and connected to the field infrastructure for production.
Additionally, the company said that the ONZ-7 well will be completed today and production testing will start early next week, with results anticipated later this month.
Echo Energy Plc (LON:ECHO) told investors it is now “ready to initiate” a busy new work programme in Argentina. The company completed its Argentina acquisition earlier this month, and has already issued tenders for the planned seismic programme.
It intends to start drilling during the second quarter. It has reserved a slot in the rig schedule for what it described as a “ transformative” four well exploration well programme in the Fracción C area. To enable that programme to go ahead as planned, the well permitting process is presently underway.
Jersey Oil & Gas Plc (LON:JOG) has told investors that a follow on to the Verbier discovery well is planned for this summer.
The company said in a statement that the co-venturers ( led by project operator Statoil) have now approved a work programme and budget for 2018, and it includes an appraisal of the Verbier oil discovery. Negotiations are presently advanced for the contracting a drilling rig for the new Verbier programme, JOG said. The company added that the programme is planned to comprise one appraisal well, plus an option for a sidetrack well.