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| Shell profits rise on higher oil prices | Shell profits rise on higher oil prices |
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| Royal Dutch Shell has reported a rise in profits as the oil giant continues to benefit from higher oil prices. | Royal Dutch Shell has reported a rise in profits as the oil giant continues to benefit from higher oil prices. |
| For the final three months of 2011 net income was $6.5bn (£4.1bn), up from $5.7bn a year earlier. For the full year, net income was up more than 50% to $28.6bn. | |
| Despite improved profits, the company said it had been hit by falling refining margins across the industry. | Despite improved profits, the company said it had been hit by falling refining margins across the industry. |
| Oil prices during the quarter were more than 20% higher than a year earlier. | Oil prices during the quarter were more than 20% higher than a year earlier. |
| However that was partially offset by a loss of $278m on its downstream operations, which includes its refining and petrol stations businesses. | |
| "Our fourth quarter results were impacted by a sharp downturn in industry refining margins and North American natural gas prices," said Shell chief executive Peter Voser. | "Our fourth quarter results were impacted by a sharp downturn in industry refining margins and North American natural gas prices," said Shell chief executive Peter Voser. |
| "The global economy and energy markets are likely to see continued high volatility. Despite the near-term uncertainties, Shell's focus remains on through-cycle investment for sustainable growth." | "The global economy and energy markets are likely to see continued high volatility. Despite the near-term uncertainties, Shell's focus remains on through-cycle investment for sustainable growth." |
| Production | |
| On Thursday Shell also announced its latest strategic plan, targeting $30bn of new investment this year. | |
| The company is trying to increase oil and gas production which, aside from a 5% rise in 2010, has fallen every year since 2002. | |
| It said 80% of the new investment would be focused on upstream operations, designed to increase oil and gas production, especially from unconventional sources such as oil and gas shale. | |
| Production from Shell's oil and gas fields in 2011 fell 3% compared with the previous year. | |
| However the company warned that that the economy remained "highly volatile" with "political uncertainties, combined with challenges in debt markets adding to price and cost volatility". |