Shell’s income for the first half of 2008 was $20.63 billion, 29% higher than $15.94 billion in the first half of 2007. Earnings for the first half of 2008 were E15.67 billion on a current cost of supplies (CCS) basis, up 8%, compared to E14.48 billion in the first half of 2007.
Shell’s second quarter 2008 earnings, on a CCS basis, were $7.9 billion, compared to $7.6 billion for the same quarter of 2007. Cash flow from operating activities for the second quarter of 2008, excluding net working capital movements, was $15.9 billion. Net capital investment for the quarter was $5.7 billion.
Second quarter exploration and production segment earnings were $5.88 billion, compared to $3.09 billion a year ago. Earnings included a net gain of $98 million related to certain items, compared to a net gain of $153 million in the second quarter of 2007.
Earnings compared to the second quarter of 2007 reflected higher gas production volumes and the benefit of higher oil and gas prices on revenues, which were partly offset by lower oil production volumes, higher royalty expenses and higher operating costs.
Global liquids realizations were 74% higher than in the second quarter of 2007, compared with increases of 76% and 91% in Brent and West Texas Intermediate marker crudes, respectively. Global gas realizations were 54% higher than a year ago. Gas realizations outside the US increased by 57%, whereas in the US they increased by 53%.
Second quarter 2008 production excluding oil sands bitumen production was 3.05 million barrels of oil equivalent per day (boe/d) compared to 3.08 million boe/d in 2007. Crude oil production was down 6%, while natural gas production was up 6% compared to the second quarter of 2007.
Jeroen van der Veer, Royal Dutch Shell’s CEO, said: Shell is making substantial, targeted investments to grow the company for shareholders and help ensure that energy markets remain well supplied. Spending is increasing on new acreage and selective acquisitions as we refresh the portfolio with new options for future growth.
