Shell net profit drops on lower oil prices

Energy giant Royal Dutch Shell said Thursday that second-quarter net profits tumbled 53 percent to $4.063 billion  on the back of sliding world oil prices and slack demand. Adjusted net profits, stripping out movements in the value of inventories and other non-operating items, slid almost 13 percent to $5.72 billion in the second quarter or three months to the end of June. That compared with $6.55 billion in the same period of last year and undershot market expectations of $6.46 billion, according to analysts polled by Dow Jones Newswires. Total oil and gas production rose 1.9 percent to 3.103 million barrels of oil equivalent per day, aided by giant projects in Canada and Qatar. However, analysts had predicted a 4.0-percent increase. "Our industry continues to see significant energy price volatility as a result of economic and political developments," said Chief Executive Peter Voser in the results statement. He added: "We are moving forward in volatile times. Our profits have fallen with energy prices." Group revenues meanwhile dipped to $119.89 billion in the quarter, compared with $124.56 billion last time around. Rival energy giant BP was meanwhile scheduled to unveil its latest quarterly results on July 31.