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Strong oil prices helped energy giant Shell achieve a record profit of $25.4 billion (£12.5 billion) during 2006.

Analysts say that the rise in oil prices to $60 (£30.54) a barrel during the course of last year, which saw consumers paying record high prices for petrol at the pumps, boosted the profit for the oil producer, which reported an 11 per cent rise in earnings in its last quarter.

For the full year, the record profit translated to $3.97 (£2.02) per Shell share, up from $3.79 (£1.93) a share the previous year.

Announcing the record profit today, Shell chief executive Jeroen van der Veer said that company's new oil explorations also helped the company reach its record profit.

"Our exploration strategy is paying off," he said. "Hydrocarbon production was underpinned by the production re-start from the Mars platform in the USA, growth in LNG and deep water Nigeria."

Mr van der Veer added, however, that the company continued to face major security concerns in its onshore Nigeria operations.

The recent reduction in oil prices could see the company struggle to repeat its 2006 profits, however.

Petrol prices dipped to just over $50 (£25.46) a barrel last month, a level that has not been seen since 2005. A decrease in demand for fuel in the US, blamed on a warmer than average winter, saw stocks of oil rising – causing a reduction in the oil price.