Shell Oil Company Reports Steady Progress in Second Quarter 1995

Strategic Insights -

Shell Oil Company's second quarter of 1995 saw a net income of $385 million, representing an increase of $579 million over the 1994 period. Excluding special items, adjusted net income totaled $387 million, a 51% increase from the previous year. The company's president, Philip J. Carroll, expressed satisfaction with the steady progress toward a stronger financial performance.

The company's revenues increased by almost 25% in the second quarter, while production of domestic crude oil and natural gas increased by 9% and 13% respectively. Sales of light refined products were up 6%, and chemical products net income continued to reflect favorable economic conditions. However, the company faced unfavorable margins for refined products and depressed natural gas prices.

Key Takeaways:

  • Shell Oil Company's net income for the second quarter of 1995 was $385 million, an increase of $579 million over the 1994 period.
  • Excluding special items, adjusted net income totaled $387 million, a 51% increase from the previous year.
  • The company's revenues increased by almost 25% in the second quarter.
  • Production of domestic crude oil and natural gas increased by 9% and 13% respectively.
  • Sales of light refined products were up 6%, and chemical products net income continued to reflect favorable economic conditions.
  • However, the company faced unfavorable margins for refined products and depressed natural gas prices.
  • Operating cash, excluding working capital charges, totaled $887 million for the second quarter of 1995, an increase of $169 million over the respective 1994 period.
  • Interest costs associated with financing activities were higher in both 1995 periods.
  • The company's chemical products income from ongoing operations was $183 million in the second quarter of 1995, an increase of $322 million over 1994.