Shell issues profit warning, blames weak conditions, exploration costs
Oil giant Shell on Friday warned its fourth-quarter earnings will be ‘significantly lower’ than last year.
The announcement, two weeks before the company is due to publish its Q4 figures, surprised analysts and sent the company’s share price down sharply on the Amsterdam stock exchange.
In a statement, Shell said its fourth quarter earnings on a current cost of supplies are expected to be approximately $2.9 bn. In 2012, the company booked profits of $5.6bn in the fourth quarter.
Over 2013 as a whole, like-for-like earnings are likely to reach $19.5bn, compared with $25.3bn in 2012.
Shell said it has been hit by ‘weak industry conditions in downstream oil products, higher exploration expenses and lower upstream volumes.’
Chief executive Ben van Beurden, who took over at the beginning of this year, said: ‘Our 2013 performance was not what I expect from Shell.’
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation