Shell second-quarter profits nearly double

Jul 29, 2010, 11:49 GMT

The Hague - BP rival Shell saw second quarter profits almost double thanks to a restructuring programme and a rise in oil prices triggered by an improving global economy.

Profits from April to June climbed to 4.5 billion dollars from 2.3 billion dollars in the same period a year ago, Europe's biggest oil concern said Thursday in a statement released in The Hague and London.

The figures, which came after a year-long restructuring programme, were better than analysts' expectations.

'We are delivering on our strategy. Shells cost programmes have delivered over 3.5 billion dollars of annualised underlying savings,' Royal Dutch Shell chief executive officer Peter Voser said.

'This is a good performance from Shell, despite todays challenging macro economic conditions. We are on track for growth,' he added.

The figures were released just three days after BP reported a record 17-billion-dollar loss, due in part to the cost of clearing up its Golf of Mexico oil spill.

Some two-thirds of Shell's profits came from its oil and gas operations.

Shell said it was paying a second-quarter dividend of 42 cents per share.

Voser was cautious about the outlook for the company.

'We continue to see mixed signals in the global economy. Oil prices have remained firm so far this year, but refining margins, oil products demand and natural gas spot prices all remain under pressure,' the chief executive said.

'Our earnings and cashflow have rallied from 2009s lows, but the outlook remains uncertain.'

Voser called blow-out on the BP oil rig and the related Gulf of Mexico oil spill is 'a tragedy for everyone affected.'

But 'world-wide deep water production has an important role to play in the global energy supply equation,' he added.