Daily Telegraph (UK): The week ahead: Soaring oil price to power BP and Shell: “Shell is planning to spend $15billion a year between now and 2006 on capital expenditure, with a significant share on exploration. But it said in its new strategy last month production growth is likely to be flat until 2009.” (ShellNews.net)
A guide to company results and meetings, and economic statistics (Filed: 25/10/2004)
BP and Shell are both expected to unveil record profits this week, as their balance sheets are lifted by the soaring price of oil. Analysts expect the oil and gas giants to make around $4.5billion (£2.5billion) in the third quarter.
Brent crude last week hit $51.40 a barrel, and its price averaged $41 in the three months to September. The high prices are expected to have pushed the underlying net earnings of Shell, whose figures arrive on Thursday, up by as much as 50pc to $4.6billion. Results from the exploration and production division should rise by a third though all areas will be hit by higher pension costs.
Shell is planning to spend $15billion a year between now and 2006 on capital expenditure, with a significant share on exploration. But it said in its new strategy last month production growth is likely to be flat until 2009.
BP has said it is on course to produce 4m barrels of oil and gas per day this year - 10pc higher than last year's figure, boosted by a strong contribution from its Russian joint venture TNK-BP. Tuesday's third-quarter results are expected to show an 11pc rise in year-on-year production, though output will be down 2pc from the second quarter.
BP's profits are expected to reach $4.4billion, following a £500m hit from environmental provisions.