Unexpected profit announcements came from the famous oil companies Shell and Total. Contrary to analysts’ expectations, the companies survived the second quarter, which was predicted to be bad, thanks to trading transactions.
Royal Dutch Shell Plc and Total SE completed the quarter, which was feared to be the worst for the energy sector, by announcing a profit.
Investors were warned about this after the coronavirus outbreak had a major impact on the energy sector. In spite of these warnings, the energy companies announced on Thursday, the losses due to the epidemic were balanced together with the profit arising from the trading of oil.
Oil traders of both companies brought strong profits. Shell and Total did not fully explain their earnings or how they earned from trading by doing the usual.
Shell’s adjusted net profit in the second quarter fell 82 percent year on year to $ 638 million. The result, however, came in much better than the median of analysts’ expectations that it would cost $ 664 million. Total’s profit surprise was $ 126 million. The company was expected to lose $ 443 million in the epidemic process.
Shell’s B shares traded in London fell 1.73 percent at 12:00 am, selling at £ 1,161.00. Shares of Total, traded in Paris, rose by 1.88 percent to 33.07 euros.