Royal Dutch Shell Plc  .com Rotating Header Image

This is Money: Shell reports record £13bn profit

1 February 2007

Royal Dutch Shell today reported another profits record, after higher oil prices lifted its annual earnings to $25.36bn (£12.94bn).

The figure, which is 21% higher than a year earlier, included a better-than-expected performance in the final three months of the year, when the company’s earnings figure rose 11% to $6.01bn (£3.06bn).

The recent fall in the price of oil means analysts are expecting the year ahead to be much tougher for Shell, particularly as it will be under increasing pressure to find new sources of oil.

While the fourth quarter was higher on a year earlier, the figure was still lower than the $6.95bn reported in the previous three months, as oil prices have eased by about 30% since hitting $77 in August.

Today’s results mean Shell generated profits of almost £1.5m an hour. But the weakening of the dollar ensured the sterling conversion of today’s figure is almost identical to last year, which was a British profits record.

With increased focus on production, Shell said fourth quarter output was 3.645m barrels of oil equivalent a day, compared with 3.5m a year ago and despite the impact of unusually low seasonal gas demand in northern Europe.

Production from Shell’s Nigerian operations was 191,000 barrels down on a year ago, due to security concerns in the country’s Western Delta.

The company’s long-term production worries have been compounded by the loss of some of its interests in the Sakhalin-2 gas project to Russia’s Gazprom.

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “This is Money: Shell reports record £13bn profit”

Leave a Comment

%d bloggers like this: