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Shell’s Record BG Deal Starts to Pay Off as Production Surges

  • Higher output pushes earnings to highest in five quarters
  • Capital expenditure seen at lower end of guidance next year
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Photographer: Chris Ratcliffe/Bloomberg

Royal Dutch Shell Plc’s biggest takeover, the subject of intense investor scrutiny during crude’s collapse, is starting to pay off as Europe’s largest oil company chalks up its highest profit in five quarters.

The cash now generated by BG Group Plc -- acquired by Shell for $54 billion in February -- outstrips its spending, while production has risen by about a third in two years, Shell Chief Financial Officer Simon Henry said Tuesday. The integration of its assets has been completed “well ahead of time,” he said.