Shell Posted Annual Profit, Lower Due to Production Problems

Royal Dutch Shell posted record annual net profit yesterday of $25.44bn but saw output falter due partly to production problems in Nigeria.

Shell was energised in 2006 by record high oil prices that soared beyond $78 per barrel on heightened geopolitical instability in the Middle East but then tumbled on mild winter weather in the northern hemisphere.

Royal Dutch Shell said net profit, excluding gains from the value of its crude oil inventories, edged up 0.5 per cent in 2006 from $25.31bn in 2005, the group revealed in an annual earnings release.