Industryweek 3621 Shell Refinery Australia
Industryweek 3621 Shell Refinery Australia
Industryweek 3621 Shell Refinery Australia
Industryweek 3621 Shell Refinery Australia
Industryweek 3621 Shell Refinery Australia

Shell Profits Down 14% for Year

Jan. 31, 2013
Shell is on track for plans we set out in early 2012, despite headwinds last year," chief executive Peter Voser said.

LONDON -- Despite an upbeat final quarter, Royal Dutch Shell (IW 1000/1) on Thursday said its net profits sank 14% last year, as the group battled headwinds including volatile oil and gas prices.

Earnings after tax dropped to $26.59 billion in 2012, compared with $30.92 billion in the previous year, the Anglo-Dutch company said.

Net profits though rose 3% to $6.7 billion in the three months to December, from $6.5 billion last time around. Production also grew by 3% to 3.41 million barrels of oil equivalent per day in the fourth quarter on an annual basis.

Adjusted net profits -- stripping out gains or losses from fluctuations in the value of inventories -- jumped 13% to $7.29 billion in the fourth quarter, as higher refining margins offset increased costs in exploration and production.

Total revenues meanwhile increased by 2% to $118.05 billion in the last three months of 2012.

And the group also lifted its fourth-quarter shareholder dividend by 2.4% to 43 cents per share.

"Shell is on track for plans we set out in early 2012, despite headwinds last year," chief executive Peter Voser said in the earnings release.

"Shell is competitive and innovative. We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment."

The London-listed energy major added that it would make $33 billion in net capital investment this year, with new projects lined up for Nigeria, Kazakhstan, Iraq and the Arctic, as part of its ongoing investment plans.

"Shell will continue the strategic drive to grow its upstream businesses, with ongoing selective investment in downstream," it said.

The group also noted that the global energy demand outlook was solid, despite the challenging economic backdrop.

"Although the economic outlook remains uncertain for some of Shell's key markets... the prospects for long-term growth in global energy demand remained unchanged, driven by rising world population and improving standards of living in developing countries," the company said.

Voser added: "Meeting this demand growth with clean and affordable energy is a formidable challenge for our industry and it is a major opportunity for Shell."

Copyright Agence France-Presse, 2013

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