Shell high on $1.3bn profit | | The Australian

THE Shell Company of Australia today posted a profit before interest and tax of $1.27 billion for 2005, a big jump from $751.5 million in 2004.
The energy giant said it expected a strong demand for gas to continue in 2006 after it announced a solid profit for last year on the back of high commodity prices.

Shell said the jump in profit was the result of strong operation performances in both its upstream and downstream businesses as well as a turnaround in its refining business.

“Once again, it's our upstream business that is the major contributor to our profitability in Australia,” Shell chairman Russell Caplan said.

“Shell's upstream business benefited from record (liquefied natural gas) production and sales volumes in a relatively strong market.”

He said he was optimistic about gas discoveries in the offshore northwest areas of Western Australia.

The upstream business posted a profit of $968 million, up from $708 million in 2004.

The downstream business posted a big improvement on 2004's $43.5 million, increasing profit to $300 million.

Mr Caplan said the Clyde and Geelong refineries had turned around their previous performances.

He said he expected the demand for gas would continue to grow in the future.

“We anticipate strong growth in gas demand and our upstream business in Australia is well placed to supply to this expanding market,” he said.

Shell is a partner in the North West