+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Cancelled projects wrecked Shell's earnings

Oct 29, 2015, 13:08 IST

A Seven tonne Monster Truck gives a demonstration of it?s car crushing abilities at the Museum of Flight on September 25, 2009 in Edinburgh, Scotland.Getty

Cut price oil and abandoned projects have cost Royal Dutch Shell dearly.

Advertisement

The company reported a huge pre-tax loss of $9.1 billion (£6 billion) after booking billions in writedowns on cancelled projects such as the Carmon Creek development in the Canadian oil sands and an oil drilling project in the Arctic.

"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," Royal Dutch Shell Chief Executive Officer Ben van Beurden said "These are difficult, but impactful decisions. I am determined that Shell will become a more focused and competitive company as a result."

These "exceptional items" reported this quarter cost the company a huge $7.9 billion, but Shell is still keeping its dividend pay out to shareholders.

Earnings excluding the charges were $1.8 billion, a decrease on the $5.8 billion reported for the third quarter of 2014.

Advertisement

The industry has been hit hard by the tumbling oil price, which has stayed mostly below $50 a barrel this quarter, falling from $100 last year.

Shell's rival, BP, on Wednesday said it would slash costs as it prepares for an era of cheap oil lasting years.

NOW WATCH: 6 little-known Excel shortcuts that will impress your boss

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article