Shell profits dive as oil recovery stalls
Second quarter figure was more than $1 billion behind expectations
Oil giant Royal Dutch Shell has reported a plunge in second-quarter profits as it missed analyst estimates by more than $1 billion. A mix of lower energy prices, weaker refining margins and production disruption affected Europe’s largest oil company.
Profit adjusted for exceptional items and inventory changes fell 72 per cent from a year earlier to $1.05 billion. Analysts had expected a $2.16 billion result.
Chief executive Ben Van Beurden, who earlier this year completed Shell’s record acquisition of BG Group,is cutting costs and spending following a two-year slump in crude. Brent’s 25 per cent rebound in the last quarter provided some prospect of relief, yet the rally is now fading while the safety net provided by refining has given way. Production shutdowns in Nigeria and Canada increased the pain for Shell.
