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AFX News Limited: Shell Q2 profit up; prepares 500 mln usd settlement for US lawsuit

Extract: Shell also announced it is ‘determined and prepared’ to resolve the US litigation ‘for, among other terms, a payment by Shell of 500 mln usd.’  ‘Accordingly, management of the Shell Group has established a 500 mln usd provision in respect of the litigation. No settlement has been reached in the matter,’ it said in a statement.

THE ARTICLE

07.27.2006, 03:49 AM

LONDON (AFX) – Royal Dutch Shell PLC delivered a 26 pct rise in second quarter profits and announced that it is prepared to pay 500 mln usd to settle a US class action lawsuit arising from the group’s controversial oil reserves downgrade a few years ago.

For the quarter to June, the group’s net profit, on an adjusted current cost of supply basis and after adding back one-time charges, rose to 6.546 bln usd from 5.194 bln last time, ahead of the consensus figure of 6.125 bln usd.

Charges for the quarter totaled 232 mln usd against 547 mln a year ago.

Stripping out the charges, CCS profit rose 36 pct to 6.314 bln usd from 4.647 bln last time.

Shell also announced it is ‘determined and prepared’ to resolve the US litigation ‘for, among other terms, a payment by Shell of 500 mln usd.’

‘Accordingly, management of the Shell Group has established a 500 mln usd provision in respect of the litigation. No settlement has been reached in the matter,’ it said in a statement.

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