Royal Dutch Shell Plc has reported a 25% drop in second quarter profits, hit by weaker oil and North American gas prices.
The fall in energy prices offset higher production as the company struggled to control costs.
Europe’s biggest oil company said profits fell to $5.7bn (£3.7bn) in the April-June period compared to $6.6bn a year earlier, the company said.
Shell’s share price was down 2.9% as the figures missed market expectations.
“We are moving forward in volatile times. Our profits have fallen with energy prices, but our growth strategy is delivering to the bottom line,” said chief executive officer Peter Voser.
“Our industry continues to see significant energy price volatility as a result of economic and political developments. Shell is implementing a long-term, consistent strategy against this volatile backdrop,” he added.
Oil and gas production volumes were 4% higher at 3.1 million barrels a day in the second quarter compared with a year earlier, said Shell.
The company is investing about $32bn this year on capital investment, with more than 20 upstream, or exploration and production projects, under construction.
As part of its global exploration programme, Shell said it had spent some $1bn on new acreage positions in the first half of this year, including deepwater, shale and tight gas, which is difficult to access.
The Netherlands-based group is currently working on a number of projects in Canada, Australia, Oman, the UK and Mexico.
