Higher margins at Shell’s refining business helped to offset a fall in oil and gas prices but couldn’t stop the oil giant from posting lower third-quarter profits.
Profits dipped to $6.6 billion (£4.1bn) from $7bn a year ago, with the dividend raised by 2.4 per cent to 43 cents.
Stuart Joyner, an analyst at Investec Securities, said: “Shell is continuing to generate substantial cash flows and we expect the priority to be re-investment but the company could afford a more generous dividend if it chose to.
“Disposals are likely to slow down to circa $2-3bn a year but Shell intends to cycle cash elsewhere in the portfolio.”
Joyner added: “Exploration will remain a priority – the key current well is the sidetracking of the high-impact Zaedyus discovery, which is coming to a close.
“Drilling in Tanzania is underway and Shell will drill three exploration wells in Alaska subject to US regulatory approval.”
