Shell Swings to 2Q CCS Loss on $16.8 Billion Impairment; Cuts Interim Dividend to 1Q Level
July 30 2020 - 1:50AM
Dow Jones News
By Jaime Llinares Taboada
Royal Dutch Shell PLC on Thursday posted a swing to a
significant loss on a current cost of supply basis for the second
quarter on the back of impairments and lower prices, volumes and
margins. It also cut the interim dividend in line with the first
quarter payment.
The Anglo-Dutch oil giant booked a CCS loss of $18.38 billion
for April-June, swinging from a $3.02 billion profit a year
earlier. The net loss came in at $18.13 billion, also reflecting an
impairment of $16.8 billion relative to lower oil and gas price
forecasts.
Excluding identified items, the company delivered a CCS profit
of $638 million, down 82% from $3.46 billion a year earlier. This
came ahead of expectations, as the company-compiled market
consensus had forecast a $674 million adjusted CCS loss.
Shell declared an interim dividend of 0.16 cents a share for the
period. This was in line with 0.16 cents for the first quarter, and
down from the 0.47 cents payment for the second quarter of
2019.
As for the third quarter of the year, Shell warned of potential
production cuts: "Due to demand or regulatory requirements and/or
constraints in infrastructure, Shell may need to take measures to
curtail or reduce oil and/or gas production, LNG liquefaction as
well as utilization of refining and chemicals plants and similarly
sales volumes could be impacted."
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
July 30, 2020 02:35 ET (06:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Shell (LSE:SHEL)
Historical Stock Chart
From Sep 2024 to Oct 2024
Shell (LSE:SHEL)
Historical Stock Chart
From Oct 2023 to Oct 2024