War helps Shell double profits

news24.com 02/05/2003 12:56  - (SA)  

London - Anglo-Dutch oil giant Royal Dutch/Shell Group saw its profits nearly double in the first three months of the year when it benefited from rising oil prices before the war in Iraq, the company said on Friday.

Net earnings, based on the current cost of supplies and excluding special items, rose to $3.914bn, an increase of 96% from the equivalent figure last year, Shell said.

"The earnings reflected significantly higher hydrocarbon prices," among other factors, the company said in a statement.

According to Shell's own statistics, the price of Brent crude oil averaged $31.50 a barrel over the quarter as against $21.15 in the same period last year.

World oil prices rocketed at the start of the year as tensions in the Middle East mounted ahead of the US-led war to unseat Iraqi leader Saddam Hussein.

Prices were also forced up by strike action in Venezuela and unrest in Nigeria which saw around a third of the country's crude exports halted.

On Tuesday, British oil giant BP reported a record first-quarter profit of $3.73bn, up 136%, which it also put down to strong oil prices.