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Shell profits jump 77% on higher oil prices

28 July 2011 Last updated at 14:16

Oil giant Royal Dutch Shell has reported a 77% jump in second-quarter profit, thanks to higher energy prices.

Shell’s profit for the three months to June came in at $8bn (£4.9bn) on a current cost of supplies basis, up from $4.5bn in the same period last year.

Though oil and gas production was 2% lower than the same quarter in 2010, the company said it had benefited from asset sales in the first half of 2011.

Earlier this week, rival BP announced second-quarter profits of $5.3bn.

On Thursday, larger US rival Exxon Mobil said that net profit rose 41% to $10.7bn for the three months to June from the same period last year.

New projects

The price of oil is much higher now than it was a year ago, in part inflated by political unrest in oil-producing countries such as Libya.

Twelve months ago, US light sweet crude oil was trading at about $78 a barrel. It is currently trading at about $97 a barrel, having topped $110 at the end of April.

Shell also said it had sold $4bn of non-core assets in the first six months of the year, which was a “key driver” to reducing costs and improving its operating performance.

However, like BP, Shell’s production was down in the second quarter year-on-year, due to field sales and warm weather which hit European gas demand.

But the company said it had started three large-scale projects this year that would add to its oil production by over 400,000 barrels per day.

These are a Canadian oil sands venture and two gas plants in Qatar, in which it has invested $30bn.

“We have made important progress with new production in 2011, and the ramp-up of our new projects should drive our financial performance in the coming quarters,” said Shell chief executive Peter Voser. and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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