Royal Dutch Shell weathered a 15 per cent drop in profits yesterday after a better-than-expected performance in the face of volatile energy markets.

Lower oil and gas prices and pressure on margins in chemicals resulted in a fall in profits to £3.8 billion (€4.7 billion) in the three months to September 30, although this beat the previous quarter.

Analysts were pleased with yesterday’s figures, causing shares to rise one per cent, while chief executive Peter Voser said the company continued to make progress despite difficult industry conditions.

Shell has sold assets in recent years as it looks to improve financial headroom for projects with greater growth potential.

Capital investment in the second quarter was £5.5 billion as the company looks to spend around £19.9 billion this year.

Shell has more than 20 projects under construction in a bid to develop leadership positions in the areas where it chooses to invest.

Voser said: “Shell is driving a long-term and consistent strategy, against a backdrop of volatile energy markets.”

He added that the level of profit was necessary to pay for the investment in new energy supplies and for dividends to shareholders. (PA)