Shell profits 'halved by lower oil prices'

Royal Dutch Shell has posted quarter one profits of 3.3 billion £2.2 billion, down 58 per cent on the previous year as a result of lower oil prices.

The Anglo-Dutch oil firm is the second in as many days to report substantial losses, with BP announcing yesterday that its profits had dropped 62 per cent in the same period.

Shell said its profits had been hit by the weaker global economy and the falling price of crude oil, which has fallen below 50 a barrel after peaking at 147 last July.

Chief executive Jeroen van der Veer said the company will focus on capital discipline and costs to weather the "challenging" industry conditions.

"We are taking a prudent approach to this downturn, focused on sustaining a strong position in the energy landscape," he added.

During the first quarter of 2009, Shell produced 3,396 thousand barrels of oil equivalent per day, which was broadly similar to the same period last year.

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2009-04-29 12:29:12 © Moneyextra.com