Shell profit falls 67pc

Royal Dutch Shell said last night its net profit fell 67 per cent in the second quarter to US$3.82 billion ($5.85 billion), reflecting a sharp decline in oil prices and worse refining margins.

In the same period a year earlier, Shell had a profit of US$11.6 billion.

Sales at Europe's largest oil company were US$63.9 billion, down from US$131.4 billion.

"Energy demand is weak," said chief executive Peter Voser. "There is excess capacity in the market and industry costs remain high."

Shell said it would reduce capital spending in 2010 to US$28 billion, from an expected US$31 billion in the current year.