Shell Reports US$27.6bn Profits

Shell has reported a record rise in profits with full-year current cost of supply earnings hitting US$27.6bn, despite lower oil and gas production.

Fourth quarter 2007 reported income was US$8,467m, 60 percent higher than in the same quarter a year ago.

Full year 2007 reported income was US$31,331m, 23 percent higher than 2006.

Oil and gas production, including oil sands production, fell from 3,645 thousand boe for the same quarter 2006 to 3,436 boe.

Exploration & production earnings rose to US$715m, reflecting net divestment gains of US$1,514m and tax credits of US$233m, mainly related to tax rate changes in Canada and Italy.

Industry refining margins, when compared to the same period a year ago, were higher in Europe and the eastern hemisphere, while refining margins declined in the US Gulf Coast and US West Coast, the company says.

"Overall these are satisfactory results. We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes," says Royal Dutch Shell Chief Executive Jeroen van der Veer.

"In the fourth quarter, we continued to see weak refining margins. The execution of our strategy is on track."

By Ozge Ibrahim