Shell posts first loss in 10 years as oil prices drop
source: http://www.bloomberg.com/apps/news?pid=20601087&sid=aKcPOGzA1C4U&refer=home
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POOR THING
Royal Dutch Shell Plc, Europe’s largest oil company, posted its first quarterly loss in 10 years after lower oil prices reduced earnings from exploration and production and the value of inventories fell.
The fourth-quarter net loss was $2.81 billion after an $8.47 billion profit a year earlier, The Hague-based Shell said today in a statement.
“Industry conditions remain challenging,” Chief Executive Officer Jeroen van der Veer said. Oil companies are reining in capital spending and putting marginal projects on hold following last year’s 54 percent drop in prices. Crude fell to a four-year low of $32.40 a barrel on the New York Mercantile Exchange on Dec. 19, after peaking at $147.27 on July 11.
“It’s a weak set of results as was expected,” Jason Kenney, an Edinburgh-based analyst at ING Wholesale, said in a telephone interview. He has a “hold” rating on the stock.
Excluding gains or losses from inventories and one-time items, earnings were $3.89 billion. The median estimate of 12 analysts surveyed by Bloomberg was for profit of $4.13 billion on this basis. Shell also had a currency loss of $351 million.
Shell’s Class A shares fell 0.5 percent to 1,768 pence as of 8:05 a.m. in London. The stock lost 15 percent last year.
Fourth-quarter profit on a current cost of supplies basis fell to $4.8 billion from $6.7 billion, while full-year profit on the same basis rose to $31.4 billion from $27.6 billion.
Royal Dutch Shell Plc, Europe’s largest oil company, posted its first quarterly loss in 10 years after lower oil prices reduced earnings from exploration and production and the value of inventories fell.
The fourth-quarter net loss was $2.81 billion after an $8.47 billion profit a year earlier, The Hague-based Shell said today in a statement.
“Industry conditions remain challenging,” Chief Executive Officer Jeroen van der Veer said. Oil companies are reining in capital spending and putting marginal projects on hold following last year’s 54 percent drop in prices. Crude fell to a four-year low of $32.40 a barrel on the New York Mercantile Exchange on Dec. 19, after peaking at $147.27 on July 11.
“It’s a weak set of results as was expected,” Jason Kenney, an Edinburgh-based analyst at ING Wholesale, said in a telephone interview. He has a “hold” rating on the stock.
Excluding gains or losses from inventories and one-time items, earnings were $3.89 billion. The median estimate of 12 analysts surveyed by Bloomberg was for profit of $4.13 billion on this basis. Shell also had a currency loss of $351 million.
Shell’s Class A shares fell 0.5 percent to 1,768 pence as of 8:05 a.m. in London. The stock lost 15 percent last year.
Fourth-quarter profit on a current cost of supplies basis fell to $4.8 billion from $6.7 billion, while full-year profit on the same basis rose to $31.4 billion from $27.6 billion.
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- tags:
- Oil, Financial Crisis, Shell, Global Financial Crisis, 2 more
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DreSandoval
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finally some good news...die motherfucker
- 3 years ago
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DreSandoval
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pjacobs51
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Aww, breaks your heart doesn't it?
- 3 years ago
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pjacobs51
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SW2
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I'm sure they will survive with all the money they have made in the past.
- 3 years ago
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SW2
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abbym0308
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Their first loss... but they still rack up record profits! At the same time they're whining about posting a loss, they bring in a record-breaking £60 million PER DAY. What the f*ck are they complaining about??
- 3 years ago
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abbym0308
