By Sarah Kent

LONDON-- Royal Dutch Shell PLC on Tuesday swung to a third-quarter profit from a year earlier, as higher production from the company's acquisition of BG Group and lower operating costs helped support earnings.

Shell said its quarterly profit on a current cost-of-supplies basis--a number similar to the net income that U.S. oil companies report--was $1.4 billion, up from a loss of $6.1 billion in the third quarter of 2015.

Its adjusted earnings, stripping out one-off items such as proceeds from divestments, rose to $2.8 billion up from $2.4billion a year earlier. That beat analysts expectations of a $1.8 billion profit according to a Dow Jones poll of 10 analysts.

The company remains cautious on the outlook for the sector following a two-year slump in oil prices.

"Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain," Chief Executive Ben van Beurden said.

Write to Sarah Kent at

(END) Dow Jones Newswires

November 01, 2016 03:46 ET (07:46 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.