Shell reports profits of over $6 billion

July 27 – Royal Dutch Shell company has reported net profits of $6.3 billion for the three months to the end of June, an increase of 36% on the same period a year earlier. The company said the rise was due to ‘a good operational performance’ and not just soaring oil prices.

The energy giant’s profits were hit by the aftermath of hurricanes in the Gulf of Mexico last year and also attacks by militants in Nigeria. Daily production averaged 3.3 million barrels of oil a day compared with 3.7 million in the first quarter.

Profits were boosted by a 35% industry average annual rise in oil prices during the period. The cost of crude oil averaged $69.53 a barrel, compared with $51.63 a year earlier.
Chief executive Jeroen van der Veer said the company aimed to open up some ’20 billion barrels of oil equivalent resources by the end of this decade’. He said Shell was making big investments to create new energy capacity.

Shell said production levels were down in Nigeria due to the security situation. Its Mars platform in the Gulf resumed production during the quarter ahead of schedule. The firm has blamed the attacks in Nigeria and the hurricanes for missing its goal of reducing oil spills in 2005.