Shell reports record profits, boosted by inflated oil price

Oil companies continue to reap huge profits with Shell the latest to report a record-busting 33% increase this morning for its second quarter results.

Boosted by the massively inflated oil price, in the second quarter Shell made $11.6 billion (£5.8 billion), 33% up on the same quarter a year ago.

Alongside the rise in profits, the company announced a Q2 2008 dividend of $0.40 per share, which is 11% greater than the dividend for the same period in 2007.

Shell’s share price rose to a high of 2.27% in early trading to 1846p. Its momentum rubbed off on other oil majors including BP, which rose by 2.5% to 523p.

Shell’s chief executive Jeroen van der Veer said that the company was looking at selective acquisitions ‘as we refresh the portfolio with new options for future growth’.

He said: ‘Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions in the second quarter 2008.’

Shell’s peer BP also reported bumper results earlier this week, with a 23% rise in its half year replacement cost profit.