Shell delivers Europe's biggest 2002 profit

Strong oil prices drove Royal Dutch/Shell Group's fourth-quarter earnings 46 per cent higher on and helped it to post the biggest…

Strong oil prices drove Royal Dutch/Shell Group's fourth-quarter earnings 46 per cent higher on and helped it to post the biggest 2002 profit by a European company.

Fourth quarter net profit, adjusted to reflect the current cost of supply, grew to $2.782 billion from $1.909 billion a year earlier, in line with market forecasts. For the year, net profit dropped 23 per cent from 2001's even higher level to $9.218 billion.

Shares in the Anglo-Dutch energy giant's London and Amsterdam listings climbed after the results, which were delivered with restated targeted investment returns that extended some of them to 2004.

British-based Shell shares climbed 1.2 per cent to 383-1/4 pence. Royal/Dutch rose 1.84 per cent at €39.35.

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The company spent $16 billion on acquisitions in 2002 and has suffered in recent months from concerns that the strong crude oil prices that have delivered bumper profits for three years are about to dip sharply.

Crude oil stands close to 10-year highs, mainly due to fears of war in Iraq.

But in its strategy statement, chairman Mr Phil Watts sent out reassuring signals as he raised dividends.