Shell’s earnings double for 2010
Oil giant Shell demonstrated the vast wealth of the oil industry as it announced a doubling of earnings this morning (February 3).
Shell’s full year earnings were $18.6 billion (about £11.5 billion) for 2010, compared to $9.8 billion in 2009.
The vast profits, which can be seen in detail here, are down to the rising price of oil and market uncertainty over the political situation in the Middle East.
Shell also spent $7 billion of buying smaller firms and other assets as well as investing $3 billion in oil exploration.
Oils increased price and higher production further highlights how badly the Gulf of Mexico leak devastated BP’s earnings compared to Shell.
Shell chief executive, Peter Voser, said the company had made good progress and that there was ‘still more to come’.
He said: “Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals, and Shell’s production growth and cost performance.
“Fourth quarter and full year 2010 earnings were supported by higher oil prices and chemicals margins.
“However, our earnings were impacted by weak refining margins, pressure on certain regional natural gas prices, and volatility in Downstream marketing margins as a result of rising oil prices.
“In 2010 Shell made good progress on implementing strategy, improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders.”