Technology Helps Drive Shell Profits

A 20% rise in profits at Royal Dutch Shell for the second quarter 2007 has been driven by operating performance and technological strengths, the company says.

The announcement of a rise in profits comes in stark contrast to BP's disappointing losses revealed yesterday.

On a Current Cost of Supply (CCS) basis, Shell's profits were up to $7.6bn compared to $6.3bn a year ago.

However, exploration and production segment earnings were down to $3,301m compared with $3,999m in the second quarter 2006, which Shell says has been impacted by lower volumes, tax charges and higher costs.

Royal Dutch Shell CEO, Jeroen van der Veer says Shell's figures were driven largely by operating performance: "We continue to see competitive growth opportunities based on our technological strengths, by making disciplined capital choices, in an industry landscape of both higher energy prices and higher costs."

The company has also announced its dividends in US dollars rather than euros.

The second quarter 2007 dividend climbed to $0.36 per share, an increase of 14% over the US dollar dividend for the same period in 2006.

By staff writer