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Shell Q3 profit falls 62 percent to $3.25 billion

Shell Q3 profit falls 62 percent to $3.25 billion

Oil company Royal Dutch Shell PLC reported a 62 percent fall in profit for the third quarter on Thursday, as weakness in the global economy pushed oil prices and refining margins down.
Europe's largest oil company said net profit was $3.25 billion (⁈illion), down from $8.45 billion in the same period a year ago. Sales fell 43 percent to $75.0 billion.
Shell Chief Executive Peter Voser said the company is not expecting a fast recovery and will cut some 5,000 job this year _ around 5 percent of its work force.
"We see some indications that energy demand and pricing are improving but the outlook remains very uncertain," he said.
Shell's production was flat from a year ago at 2.93 million barrels of oil per day, and up slightly from the second quarter. Shell is investing heavily in new production to reverse a decade-long declining trend, and has vowed production increases by next year.
Voser said he was pleased with progress at the company's major gas project on Russia's Sakhalin island, which came on line earlier this year.
The company's earnings from production fell 82 percent to $1.54 billion, reflecting a fall in the price of oil.
Refining earnings fell 47 percent to $1.29 billion, including a gain of $536 million because of a rise in the estimated value of inventories. Shell said refining margins worsened due to lower demand.


Updated : 2021-03-01 15:24 GMT+08:00