Shell reports profits surge of 33pc in second quarter
Friday, 1 August 2008
LONDON, July 31 (AFP): Anglo-Dutch energy giant Royal Dutch Shell said today that net profit jumped by a third to 11.556 billion dollars (7.409 billion euros) in the second quarter owing to record high oil prices.
Net earnings on a current cost of supply (CCS) basis, excluding fluctuations in the value of inventories, rose five per cent to 7.9 billion dollars in the three months to the end of June, compared with the same period of 2007.
Shell added in a results statement that production fell by 1.6 per cent during the reporting period to 3.126 million barrels of oil equivalent per day, with output hit by ongoing unrest at the group's facilities in Nigeria.
World oil prices rocketed to record heights in the second quarter and hit historic peaks above 147 dollars per barrel earlier this month in London and New York.
"This is another set of competitive earnings for Shell shareholders," said chief executive Jeroen van der Veer in comments accompanying the earnings release.
"Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions in the second quarter 2008.
"Shell is making substantial, targeted investments to grow the company for shareholders and help ensure that energy markets remain well supplied."
On Tuesday, rival energy group BP said its net profit rallied by 28 per cent to 9.47 billion dollars in the second quarter.
Royal Dutch Shell is the world's second biggest energy company in terms of stock market capitalisation behind number one ExxonMobil. BP is the third largest.
Net earnings on a current cost of supply (CCS) basis, excluding fluctuations in the value of inventories, rose five per cent to 7.9 billion dollars in the three months to the end of June, compared with the same period of 2007.
Shell added in a results statement that production fell by 1.6 per cent during the reporting period to 3.126 million barrels of oil equivalent per day, with output hit by ongoing unrest at the group's facilities in Nigeria.
World oil prices rocketed to record heights in the second quarter and hit historic peaks above 147 dollars per barrel earlier this month in London and New York.
"This is another set of competitive earnings for Shell shareholders," said chief executive Jeroen van der Veer in comments accompanying the earnings release.
"Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions in the second quarter 2008.
"Shell is making substantial, targeted investments to grow the company for shareholders and help ensure that energy markets remain well supplied."
On Tuesday, rival energy group BP said its net profit rallied by 28 per cent to 9.47 billion dollars in the second quarter.
Royal Dutch Shell is the world's second biggest energy company in terms of stock market capitalisation behind number one ExxonMobil. BP is the third largest.