Royal Dutch Shell earnings fall in third quarter
London, United Kingdom (4E) – Royal Dutch Shell reported lower third quarter profits of $6.12bn, compared to 7.2bn the company earned in the same period last year.
The Anglo-Dutch energy company on Thursday announced a 6.3 per cent decline in profits in the three months ending September primarily due to lower oil and gas prices and falling margins in chemicals.
The company’s sales fell 8.9 per cent to $112bn, a reflection of the weak demand for oil as a result of the global economic slowdown.
Total oil and gas production fell by 1 per cent to 2.982 million barrels a day, down from 3.012 million barrels a day during the same period in the 2011. The lower production level was due to security troubles in onshore Nigeria, asset sales and Hurricane Isaac hitting its offshore Gulf of Mexico operations.
Oil production is expected to bounce back by 2 per cent to 3.071 million barrels a day, according to analysts.
In a statement, chief executive Peter Voser said that earnings were driven by the drop in oil and gas prices, and shrinking chemicals margins, offsetting the company’s strong performance in integrated gas and oil products.
Vosser added that the result showed there is progress in the midst of a difficult industry environment.