Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market. “Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
BRITISH oil giants BP and Royal Dutch Shell are set to report plunging third-quarter profits this week, with both expected to say that they have been hit by weak refining margins and production outages, according to City analysts.
Aside from tougher market conditions, analysts believe BP’s Gulf of Mexico oil spill legal battles will weigh on its results expected on Tuesday. They predict increased US legal provisions will contribute to profits falling 37 per cent to £4.9 billion.Investec forecasts BP’s arch-rival Shell will report that its net earnings have fallen 25 per cent to £4.9 billion, due to its struggles with spills, theft and disruption at its Nigerian operations, as well as higher exploration costs and a weak refining and petrol market.
“Unfortunately, ongoing issues in Nigeria, higher exploration charges, losses in Upstream Americas plus a weak downstream environment do not augur well,†Investec said.
Deutsche Bank said challenges in Nigeria meant they viewed the quarter with “continuing trepidation†saying that in refining “Shell’s outsized footprint combined with the usual bout of unplanned downtime looks set to cost them dearly.â€
Resources exploration firm BG Group, which was part of British Gas owner Centrica until 1997, is expected to say on Thursday that its profits for the third quarter have fallen 20 per cent to £1.8 billion.
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