You are in > manchester.com  > News > Anger as Shell posts record profits

Business

Anger as Shell posts record profits

02/02/2006

Annual profits at Royal Dutch Shell hit record levels for a UK listed company, despite rising petrol costs in Britain.

The Anglo-Dutch conglomerate today announced results bulked up by high oil prices and high margins on refining operations but unions have called on the government to limit the company's future profits.

Shell's record full year results delivered basic earnings per share of $3.79 for 2005, while the firm posted a three per cent rise in its fourth quarter current cost of supply (CCS) net earnings to a forecast £3 billion.

Over the period Shell said that production stood at 3.52 million barrels of oil equivalent per day (boepd). The figure was in line with its forecasts but down from the previous year's figure of 3.84 million boepd.

In 2005 Shell reported income was $25,311 million, 37 per cent up on 2004, and CCS earnings stood at a UK record breaking $22.94 billion.

Chief executive Jeroen van der Veer said: "Our good performance in the fourth quarter of 2005 gives us a solid platform to build on in 2006. We delivered record cash and earnings."

The Transport and General Workers Union (T&G) claimed that such results should force the government to consider introducing a windfall tax.

"Shell has reaped the benefit of their own windfall through rising oil prices," said T&G general secretary Tony Woodley.

"It is high time the government acted decisively and brought in a proper windfall tax.

"While Shell shareholders revel in their millions, it is the people who are struggling after having their pensions robbed I feel for."

Royal Dutch Shell is the world's number three oil company by market value. It said it returned over $17 billion to shareholders in 2005 and expects to buy back $5 billion from shareholders in the coming year.

© Adfero Ltd