Anglo-Dutch oil giant Royal Dutch Shell Thursday reported profits of nearly 8 billion pounds (16 billion dollars) in the first six months of this year, due largely to the rocketing oil price.

Shell said increased oil and gas prices offset the impact of weaker trading conditions in its downstream refining and marketing business.
The company posted earnings of 7.92 billion pounds for the half-year, with the period from April to June seeing a 5-per cent jump to 3.82 billion pounds, compared with the same period in 2007.

"This is another set of competitive earnings for Shell shareholders. Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions in the second quarter 2008. Shell is making substantial, targeted investments to grow the company for shareholders and help ensure that energy markets remain well supplied. Spending is increasing on new acreage and selective acquisitions as we refresh the portfolio with new options for future growth. Our strategy is on track," said Jeroen van der Veer, Shell Chief Executive.

Cash flow from operating activities, excluding net working capital movements, was $15.9 billion compared to $10.6 billion for the same quarter last year. Including net working capital movements, cash flow from operating activities was $4.2 billion compared to $8.8 billion in the second quarter 2007.

Oil and gas production, including oil sands bitumen production, for the second quarter 2008 was 3,126 thousand barrels of oil equivalent per day (boe/d), compared to 3,178 thousand boe/d in the same quarter last year. Excluding the impact of divestments and production sharing contracts (PSC) pricing effects, second quarter 2008 production was in line with the same quarter last year.