Shell said its losses included stock value losses of $165 million because of declining crude oil and product prices. In 2000, its profit of $93 million included a $156 million gain on inventory.

Shell's result followed closely on the heels of losses reported by Mobil and Caltex in their marketing and refining operations. Caltex reported a net loss of $186.1 million while Mobil Oil Australia, reported a $208 million loss. BP is still yet to report its results.

Shell has recently announced a $130 million upgrade of its Geelong refinery and has earmarked another $400 million investment for its refineries over the next four years so they can match new petrol standards.

Last month, the Australia Competition and Consumer Commission made highly-publicised raids on oil companies to investigate an unnamed whistleblower's allegations that the companies had been colluding on prices.