AnswerID: 173998 Submitted: Monday, May 22, 2006 at 16:34
Truckster (Vic)
replied:
Shell posts $1.3 billion profit
Energy giant Shell says it expects strong demand for gas to continue in 2006 after announcing a strong profit for last year on the back of high commodity prices.
The Shell companies of
Australia today posted a profit before interest and tax of $1.27 billion for 2005, up from $751.50 million in 2004.
Shell said the jump in profit was the result of strong operation performances in both its upstream and downstream businesses as well as a turnaround in its refining business.
"Once again, it's our upstream business that is the major contributor to our profitability in
Australia," Shell chairman Russell Caplan said.
"Shell's upstream business benefited from record (liquefied natural gas) production and sales volumes in a relatively strong market."
He said he was optimistic about new gas discoveries in the offshore northwest areas of
Western Australia.
The upstream business posted a profit of $968 million, up from $708 million in 2004.
The downstream business posted a big improvement on 2004's $43.5 million, growing profit to $300 million.
Mr Caplan said the Clyde and Geelong refineries had turned around their previous performances.
He said he expected the demand for gas would continue to grow in the future.
"We anticipate strong growth in gas demand and our upstream business in
Australia is well placed to supply to this expanding market," he said.
Shell is a partner in the North West Shelf resource joint venture and also distributes fuel throughout
Australia.
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