Royal Dutch Shell (RDS.A, RDS.B) -0.9% premarket despite reporting higher Q3 earnings, with increases in both upstream and downstream, while sales fell 7% to $107.9B.
In Shell's core E&P business, Q3 earnings rose 25% Y/Y despite lower oil prices, benefiting from new production starting up in high-margin areas including the Gulf of Mexico; Shell also said it had fewer writeoffs on dry holes than in the year-ago quarter.
Q3 oil and gas production fell 5% Y/Y to 2.8M boe/day because of divestments, a license expiry in Abu Dhabi, and security impacts in Nigeria.
Net capital investment in the quarter was $4.8B, vs. $9.4B for the same period a year ago.
Shell also says Charles Holliday, former DuPont CEO and former Bank of America chairman, will succeed Jorma Ollila as chairman next year; Holliday has been a non-executive director at Shell since 2010 and will be the company’s first American chairman.
ConocoPhillips (NYSE:COP) +0.8% premarket after reporting Q3 earnings that beat Wall Street estimates and rose 9% Y/Y on increased oil and gas production, despite a drop in selling prices.
Q3 production from continuing operations, excluding Libya, totaled 1.473M boe/day, up 1.7% Y/Y; Eagle Ford and Bakken production jumped by 33%.
COP says its total realized oil price was $64.78 in Q3, down from $69.68 a year earlier.
Reaffirms its outlook for 3%-5% FY 2014 volume growth to 1.525M-1.535M boe/day.
"We expect strong growth in 2015 driven by ongoing success in the North American unconventionals and start-up of several major projects, including Surmont 2 [in Canada] and APLNG" in Australia, CEO Ryan Lance says.
HOS says Q3 average new generation OSV dayrates were $28,049, up $500 Q/Q and Y/Y, and forward contract coverage for its current and projected fleet of active new generation OSVs is 62% for Q4 and 27% for FY 2015.
As of the end of Q3, excluding two inactive non-core vessels, HOS' operating fleet consisted of 60 new generation OSVs and four MPSVs.