Royal Dutch Shell issues profit warning

Royal Dutch Shell 'A'

Last Updated at 23 Jul 2014, 09:54 ET *Chart shows local time Royal Dutch Shell 'A' intraday chart
price change %
2426.00 p +
+7.50
+
+0.31

Related Stories

Oil giant Royal Dutch Shell has issued a profit warning after it made less money than expected in the final quarter of 2013.

"Fourth-quarter 2013 figures... are expected to be significantly lower than recent levels of profitability," the company said in a statement.

It now expects profits for the quarter to be about $2.2bn (£1.3bn) and profits for 2013 as a whole to be $16.8bn.

Shell's shares fell more than 4% at the beginning of trading in London.

Profits for 2013 are expected to be down significantly on 2012, when it made $27.2bn.

"Our 2013 performance was not what I expect from Shell," Shell chief executive Ben van Beurden said in a statement.

"Our focus will be on improving Shell's financial results, achieving better capital efficiency and on continuing to strengthen our operational performance and project delivery."

Asset sales

Mr van Beurden became chief executive at the beginning of this year, taking over from Peter Voser.

Shell said its profits in the fourth quarter were hurt by a range of factors, including higher exploration costs, security problems in oil-rich Nigeria, and maintenance work that hit oil and gas production.

It said the weakening of the Australian dollar also had an effect.

Expected profits of $2.2bn for the quarter include impairments of $700m. When these are discounted, the expected profits are $2.9bn.

Shell's official annual results are scheduled to be published on 30 January.

It has seen a string of disappointing quarterly results over the past 12 months.

Earlier this week, it detailed plans to sell off some of its North Sea oilfield investments, and last year it began selling off some interests in the US shale gas industry.

In December, the Anglo-Dutch company also cancelled a $20bn project to build a gas processing plant in Louisiana.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

From BBC Capital

Programmes

  • A man holds a sign which reads Bring Back Our GirlsHARDtalk Watch

    Why there is still hope and optimism for the rescue of Nigeria’s kidnapped schoolgirls

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.