Royal Dutch Shell Posts Loss In Q3 Amid Lower Prices

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The FINANCIAL — European oil giant Royal Dutch Shell Plc. on October 29 reported a third-quarter attributable loss of $7.416 billion or $1.16 per share, compared to earnings of $4.463 billion or $0.70 per share last year, according to Nasdaq.

Pre-tax loss was $9.123 billion, compared to profit of $8.118 billion last year.

On a current cost of supplies or CCS basis, the company reported a loss of $6.1 billion compared with a gain of $5.3 billion for the same quarter a year ago.

The latest results included substantial charges, reflecting a lower oil and gas price outlook and the firm steps the firm is taking to review and reduce Shell’s longer-term option set. The company has halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek in-situ oil project in Canada.

Adjusted CCS earnings were $1.8 billion compared with $5.8 billion last year. Shell said earnings were impacted by non-cash charges of some $1.0 billion related to adverse currency exchange rate effects on deferred tax positions and financing items which were not included as identified items.

Total revenue and other income plunged to $69.184 billion from last year’s $109.825 billion.

Royal Dutch Shell Chief Executive Officer Ben van Beurden said, “Shell’s integrated business and our performance drive are helping to mitigate the impact of low oil prices on the bottom line, in what is a difficult environment for the industry today. We continue to improve the operational performance of our assets, and production volumes are up.”

Shell announced a third quarter dividend of $0.47 per ordinary share and $0.94 per American Depositary Share.

 

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