Shell reports record £13.9bn profits

Last Modified: 31 Jan 2008
Source: ITN

Oil giant Royal Dutch Shell has reported record UK company profits of £13.9 billion, an increase of 9 per cent on a year ago.

The profits, the equivalent of more than £1.5 million an hour, are likely to spark a row with motorists paying forecourt petrol prices of over £1 a litre and the price of crude oil rising towards $100 a barrel in the US.

Shell said fourth quarter profits were 11 per cent ahead at £3.36 billion - higher than consensus forecasts for a figure of around £2.95 billion. The exploration and production division posted earnings of £2.45 billion, against £1.78 billion a year earlier.

Chief executive Jeroen van der Veer said: "Overall these are satisfactory results. We made good progress in 2007, launched new projects upstream and downstream, and achieved exploration successes."

The announcement came as union leaders stepped up their call for a windfall tax on oil companies over "obscene" profits.

Unite's joint general secretary Tony Woodley said: "Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling."

He added: "This government took the brave step of putting a windfall tax on the greedy privatised utilities to fund the New Deal. With pensions injustices still to be addressed, fortune should favour the brave again and the greedy oil companies should be asked to contribute for the common good.

"The oil companies can maintain their investment programmes, maintain their explorations, pay their normal taxes, maintain good returns to shareholders but still put their hands in their treasure chests and pay a windfall tax. These companies can afford it. Many pensioners cannot afford to live. It's as simple as that."

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