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Shell reports net loss of $7.4 billion for Q3 after write-offs

by ChemOrbis Editorial Team -
  • 29/10/2015 (16:03)
Royal Dutch Shell reported a net loss of $7.4 billion for the third quarter compared to a profit of $4.5 billion at the same time last year. Earnings adjusted for inventory changes and one-time items fell 70% to $1.8 billion. The company wrote off $7.9 billion for operations including an exploration venture off Alaska and a canceled heavy-oil project in Canada. Shell has also had to write off several billion dollars in North American shale gas properties due to the changing long-term outlook for the prices of oil and gas.

As oil and gas prices are down around 50% from a year earlier, Shell’s earnings from extraction were hurt. CEO Ben van Beurden said in a statement, “We are making changes to Shell’s portfolio mix by reviewing our longer-term upstream options worldwide, and managing affordability and exposure in the current world of lower oil prices.

Similar to other oil companies, Shell is having problems making money from the core business of finding, producing, and selling oil and gas. Shell’s chief financial officer Simon Henry said that the company’s break-even price for oil was about $60 per barrel. Prices for Brent crude have been hovering around $48 a barrel.
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