fuel prices down
The sharp decline in the price of crude oil since the middle of 2008 has been blamed for a huge fall in profits from both Royal Dutch Shell and rival Exxon Mobil.
Reported profits for the period April to June 2009 showed profits at Shell had fallen 70% from the same period a year earlier at £1.4bn, while Exxon’s report showed a 66% decline for the same quarter with profits at $3.95bn.
Both companies recorded lower sales than a year earlier, with Shell down 51% and Exxon by 46%.
Shell say that global demand for oil remains very weak but they are doing everything to adapt to the situation, “We are sharpening our focus on delivery and affordability” said CEO Peter Voser.
The company says that it has achieved savings of $700million in the first half of 2009 and would continue with a programme of cost cutting during the remainder of the year. Shell say they have cut senior management positions by 20% as part of the planned savings.
Earlier this week BP also reported a big cut in profits.
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