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London Evening Standard: Shell’s massive profits mirror BP

Jim Armitage,
28 July 2005

SHELL’S profits surged by more than a third in the first half of the year, thanks to record oil prices.

With crude currently hovering around $60 a barrel, the company enjoyed profits of $10.2bn (£5.8bn) – up 39% on the same period last year. Shell is not alone in enjoying a big boost to earnings on the back of rampant oil prices. BP said earlier this week it made £6bn in its half-year.

Shell is attempting to win back investor confidence following the scandal last year when it was found to have been grossly exaggerating the amount of oil it had in reserves, waiting to be pumped out of the ground. Today it stressed it would be spending $1.8bn a year for the next two years in its hunt for new reserves.

But investors remain rattled about huge cost overruns at its flagship gas exploration project in Russia. Sakhalin II could end up costing double the expected $10bn.

‘We have to say there are certain large projects which don’t go well at all,’ said chief executive Jeroen van der Veer. He denied the blundered project was of lasting damage to the group’s reputation.

‘We build many gas plants on time, on schedule,’ he added. and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

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