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| Shell hit by falls in oil price | Shell hit by falls in oil price |
| (30 minutes later) | |
| Oil giant Royal Dutch Shell has posted a sharp fall in quarterly profits after the price of oil slumped dramatically towards the end of last year. | Oil giant Royal Dutch Shell has posted a sharp fall in quarterly profits after the price of oil slumped dramatically towards the end of last year. |
| Profits for the final three months of 2008 fell by 28% to $4.8bn (£3.4bn) from $6.7bn the year previously. | Profits for the final three months of 2008 fell by 28% to $4.8bn (£3.4bn) from $6.7bn the year previously. |
| But annual profits at the Anglo-Dutch company rose 14%, to $31.4bn, helped by record oil prices over the summer. | But annual profits at the Anglo-Dutch company rose 14%, to $31.4bn, helped by record oil prices over the summer. |
| Oil prices reached $147 a barrel in July 2008 before falling dramatically to below $50 by the year end. | Oil prices reached $147 a barrel in July 2008 before falling dramatically to below $50 by the year end. |
| The $4.8bn fourth-quarter profit - measured on a current cost of supply basis - was also 56% lower than the previous quarter. | The $4.8bn fourth-quarter profit - measured on a current cost of supply basis - was also 56% lower than the previous quarter. |
| Shell boss Jeroen van der Veer described the fourth quarter results as "satisfactory", given the fall in demand for oil and the weakening global economy. | Shell boss Jeroen van der Veer described the fourth quarter results as "satisfactory", given the fall in demand for oil and the weakening global economy. |
| "Our strategy remains to make significant investments in the company for future profitability. Industry conditions remain challenging, and we are continuing the focus on capital and cost discipline at Shell," he said. | "Our strategy remains to make significant investments in the company for future profitability. Industry conditions remain challenging, and we are continuing the focus on capital and cost discipline at Shell," he said. |
| Oil and gas production in the fourth quarter was virtually unchanged from the same period in 2007, at 3.4 million barrels a day. | Oil and gas production in the fourth quarter was virtually unchanged from the same period in 2007, at 3.4 million barrels a day. |
| Full-year production was slightly down on the previous year. | Full-year production was slightly down on the previous year. |
| "These are not top draw results from Shell," said Keith Bowman at Hargreaves Lansdown. | |
| "All in all, despite enviable cash flows and low borrowing levels, Shell, as with industry in general, is suffering under the weight of global economic decline." |