The world's number three oil company Royal Dutch/Shell has reported a 38% fall in second quarter profits, at the low end of expectations due to weak fuel refining and natural gas returns.
Net profits - adjusted to reflect current oil prices - fell to $2.2 billion for the three months to the end of June.
Refining conditions are the 'worst in living memory', according to chairman Phil Watts, as global overcapacity is depressing profit margins.
'Our second quarter earnings are below aspirations,' he said in a statement. 'We can do better. We are making progress on our underling productivity targets, but we have more to do on costs and capital efficiency.'
The group said it had succeeded in increasing output volumes by 8%, although most of the growth had come from the acquisition of Enterprise Oil.
