Gas and oil giant Shell posted a sharp decline in third-quarter profits due to low oil prices and write-downs on projects.
Shell’s third-quarter earnings, on a current cost of supplies (CCS) basis, were at $1.8 billion, down by 70 percent as compared with the same quarter in 2014.
“ The headline numbers we’re reporting today include substantial charges. These charges reflect both a lower oil and gas price outlook and the firm steps we are taking to review and reduce Shell’s longer-term option set, ” Ben van Beurden, CEO of Shell said on Thursday.
Shell took $7.9 billion charges in the quarter after it halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek in-situ oil project in Canada.
“ These are difficult, but impactful decisions. I am determined that Shell will become a more focused and competitive company as a result ,” van Beurden said.
According to Shell’s CEO, the $70 billion takeover deal of LNG player BG Group remains on track for completion in early 2016.
LNG sales
Shell said it equity LNG sales volumes were at 5.31 million tonnes in the third quarter, a drop of 7 percent when compared with the same quarter a year ago.
The decline in sales is mainly reflecting the expiry of the Malaysia LNG Dua JVA in August, according to Shell. The Hague-based company has handed over its operatorship and 50 percent interest in the JVA to Malaysia’s Petronas.
In the first nine months of this year, Shell’s equity LNG sales volumes stood at 16.94 million tonnes, down by 5 percent as compared to 2014.
LNG World News Staff; Image: Shell