Oil Giant Shell Pumps Out £3.2bn Profit

Anglo-Dutch oil company Shell has announced profits of £3.2bn for the first quarter of 2010 - up more than 48% year on year.

The boost in profits was due to higher oil prices and an unexpected return to production growth, said chief executive Peter Voser.

Shell said net income was £3.2bn ($4.90bn) in the quarter, up from £2.2bn ($3.30bn) in the same period last year.

Production of oil and gas rose 6% in the quarter compared to the same period in 2009, to 3.59 million barrels of oil equivalent per day.

Analysts had predicted output would be flat.

The figures come a day after BP posted a figure £3.6bn ($5.6bn) for the same period.

Shell's performance has lagged behind BP as it has been forced to ramp up spending to secure new sources of oil and gas at a time when refining margins are under pressure due to global overcapacity and economic weakness.

Shell cut 5,000 jobs last year and will remove another 1,000 in 2010 - mainly in downstream and corporate functions - to make it more competitive.

Analysts believe the firm has suffered for "taking its foot off the pedal" in exploration in the late 1990s.

Mr Voser, who said the company's results had "improved considerably", claimed the recent turnaround was largely driven by Shell's own actions.

He added: "The priorities are for a more competitive performance, for growth, and for sharper delivery of strategy. There is more to come from Shell."

 

Source - Sky News

Posted Date: 28th Apr 2010