Shell Profit Hit Hard by Low Oil Prices
July 28 2016 - 3:00AM
Dow Jones News
LONDON—Royal Dutch Shell PLC on Thursday reported a sharp drop
in second-quarter profit compared with a year earlier as lower oil
and gas prices weighed on earnings.
The quarter was the first full one that included BG Group PLC,
which Shell bought in a roughly $50 billion acquisition that
completed in February.
Shell said its quarterly profit on a current cost-of-supplies
basis—a measure similar to the net income that U.S. oil companies
report—was $239 million, down 93% from $3.36 billion a year
earlier. Its adjusted earnings, stripping out one-off items such as
proceeds from divestments, fell to $1.05 billion from $3.76 billion
a year earlier.
A Wall Street Journal poll of seven analysts forecast adjusted
earnings of $2.27 billion for the quarter.
"Downstream and integrated gas businesses contributed strongly
to the results, alongside Shell's self-help program. However, lower
oil prices continue to be a significant challenge across the
business, particularly in the upstream," said Shell Chief Executive
Ben van Beurden.
(END) Dow Jones Newswires
July 28, 2016 02:45 ET (06:45 GMT)
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