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| Shell sets new UK profits record | Shell sets new UK profits record |
| (about 3 hours later) | |
| The Anglo-Dutch oil firm Royal Dutch Shell has reported annual profits of $27.56bn (£13.9bn), a record for a UK-listed company. | The Anglo-Dutch oil firm Royal Dutch Shell has reported annual profits of $27.56bn (£13.9bn), a record for a UK-listed company. |
| Much of the rise in profits has been attributed to rising oil prices, which currently stand at about $91 a barrel compared with $57 this time last year. | Much of the rise in profits has been attributed to rising oil prices, which currently stand at about $91 a barrel compared with $57 this time last year. |
| But there is concern among analysts that Shell has delayed publishing figures showing its oil reserves. | But there is concern among analysts that Shell has delayed publishing figures showing its oil reserves. |
| Profits, measured by current cost of supply, beat a 2006 record of £12.9bn. | Profits, measured by current cost of supply, beat a 2006 record of £12.9bn. |
| See graph of Shell profits | |
| Suspicious traders | Suspicious traders |
| The oil reserves figure, which shows whether Shell found enough oil in the ground to replace the amount it was taking out, will not be published until the spring. | The oil reserves figure, which shows whether Shell found enough oil in the ground to replace the amount it was taking out, will not be published until the spring. |
| Royal Dutch Shell shares | |
| "The market really has taken this to imply that the figures aren't going to be great," said Nick MacGregor, an oil analyst from Redmayne Bentley. | "The market really has taken this to imply that the figures aren't going to be great," said Nick MacGregor, an oil analyst from Redmayne Bentley. |
| "If they were that good Shell would be telling the world about it now." | "If they were that good Shell would be telling the world about it now." |
| 'Satisfactory results' | 'Satisfactory results' |
| Shell shares are listed in the UK and the Netherlands and its headquarters are in The Hague. | Shell shares are listed in the UK and the Netherlands and its headquarters are in The Hague. |
| It reports its profits figures in dollars because oil is priced in the US currency. | It reports its profits figures in dollars because oil is priced in the US currency. |
| In dollar terms its earnings are up 9% on the previous year. | In dollar terms its earnings are up 9% on the previous year. |
| It has set its dividend at $0.36 per share for the last three months of 2007, which is up 11% on the same period of 2006. | It has set its dividend at $0.36 per share for the last three months of 2007, which is up 11% on the same period of 2006. |
| "Overall these are satisfactory results," said Shell's chief executive Jeroen van der Veer. | "Overall these are satisfactory results," said Shell's chief executive Jeroen van der Veer. |
| "We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes." | "We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes." |
| Windfall tax | Windfall tax |
| Some unions have objected to the level of Shell's profits at a time when consumers and businesses are having to cope with the effects of high oil prices. | Some unions have objected to the level of Shell's profits at a time when consumers and businesses are having to cope with the effects of high oil prices. |
| Unite's joint general secretary Tony Woodley described the level of profits in the oil industry as, "quite frankly obscene". | Unite's joint general secretary Tony Woodley described the level of profits in the oil industry as, "quite frankly obscene". |
| "Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling." | "Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling." |
| Mr Woodley is calling for a windfall tax on oil companies similar to the one imposed on privatised utilities when the Labour government came to power. | Mr Woodley is calling for a windfall tax on oil companies similar to the one imposed on privatised utilities when the Labour government came to power. |
| The oil companies have stressed that little of their profits come from petrol forecourts, with the majority of the price paid at the pump already going straight to the government. | The oil companies have stressed that little of their profits come from petrol forecourts, with the majority of the price paid at the pump already going straight to the government. |
| Additional taxes on their UK operations have already been imposed, with special taxes on the revenue they make extracting oil and gas from the North Sea. | Additional taxes on their UK operations have already been imposed, with special taxes on the revenue they make extracting oil and gas from the North Sea. |
| Back to link | Back to link |
| What is your reaction to Shell's record profits? You can send your comments using the form below: | What is your reaction to Shell's record profits? You can send your comments using the form below: |