Royal Dutch Shell Plc  .com Rotating Header Image

Shell’s profits slump to 30-month low on weak oil, gas prices

Shell’s profits slump to 30-month low on weak oil, gas prices

LONDON (Reuters) – Royal Dutch Shell’s second quarter profits slumped to a 30-month low due to lower oil and natural gas prices and refining margins, falling far short of forecasts.

The Anglo-Dutch company reported on Thursday a rise in cash generation – a sign of improving operations – but the drop in profit dents a steady recovery since the end of 2016.

Shell, the world’s second-largest publicly-traded energy company, joins rivals Total and Norway’s Equinor in reporting weak results for the quarter.

“We have delivered good cash flow performance, despite earnings volatility, in a quarter that has seen challenging macroeconomic conditions in refining and chemicals as well as lower gas prices,” Chief Executive Officer Ben van Beurden said in a statement.

Net income attributable to shareholders in the quarter, based on current cost of supplies (CCS) and excluding identified items, dropped 25% to $3.6 billion from a year ago.

That compared with a profit forecast of $4.93 billion, according to a company-provided survey of analysts.

Cash flow, a key measure for the Anglo-Dutch company, rose to $11 billion from $9.5 billion a year ago.

Free cash flow — cash available to pay for dividends and share buybacks — dropped to $6.9 billion.

Shell has focused on cash generation as a key measure of growth, targeting free cash flow of $25 to $30 billion a year between 2019 and 2021 and as much as $35 billion by 2025.

Rival BP on Tuesday reported stronger-than-expected profit in the quarter, which was largely unchanged from a year earlier, while France’s Total and Norway’s Equinor both reported sharp falls in earnings.

Exxon Mobil and Chevron both report on Friday.

Reporting by Ron Bousso, editing by Deepa Babington

SOURCE

royaldutchshellplc.com and its also non-profit sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

0 Comments on “Shell’s profits slump to 30-month low on weak oil, gas prices”

Leave a Comment

%d bloggers like this: