Shell reports 46% profit rise for last quarter

Anglo-Dutch oil giant Shell reported a 46% rise in profits for the last quarter today after benefiting from higher oil prices.

The group said profits for the three months to December 31 jumped to $2.78bn (€€2.57bn), helped by the average oil price rising to $26.80 (€24.80) a barrel compared with $19.40 (€17.95) in the same period the previous year.

The oil price has been buoyed over the past months by a strike in oil-rich Venezuela and by concerns about war in Iraq.

Shell cautioned that the outlook for crude oil prices this year was “highly uncertain” with prices expected to be volatile and impacted by developments in the Middle East and Venezuela.

Although quarterly profits were ahead, full-year profits tumbled 23% to $9.21bn (€8.52bn) after being hit by weak margins for oil products, while a 6% rise in exploration and production volumes was more than offset by higher costs and changes to the UK tax regime.

Chairman Philip Watts said: “The economic climate for our businesses remains uncertain and we expect continuing volatility.

“I am confident, however, that the inherent strengths of our portfolio will be even more apparent in this environment.

“We remain resilient against lower oil prices and are well placed to benefit from any upturn in demand in the world’s major energy markets.”

The results came as the group unveiled plans to continue to cut costs and drive profits, despite uncertain and volatile market conditions.