Shell lifts profit in fierce market

Shell New Zealand, a unit of Royal Dutch Shell, yesterday reported a 12 per cent rise in full-year net profit to $200.5 million, after higher earnings from its exploration and production business offset low margins in the retail petrol market.

The company did not supply a revenue figure, citing commercial confidentiality.

The company's commercial oil products business posted a 50 per cent fall in net profit for the year ended December 31, to $31.2 million, but exploration and production net profit jumped 51 per cent to $172.4 million. Shell booked miscellaneous charges of about $3.1 million.

Exploration and production earnings were boosted by the takeover of Fletcher Challenge Energy in March 2001.

Shell's combined retail and commercial oil products businesses had a difficult year reflecting the "fiercely competitive local marketplace" for fuels, the company said.

Royal Dutch Shell released its results earlier in the year, and Shell New Zealand said it had decided to publish its results as a unit, for reasons of transparency.