Shell’s third-quarter revenue dived from $107.9 billion to $68.7 billion while adjusted profits slumped 70% to $1.8 billion.
The company’s bottom line was also hurt by a $2.6 billion charge relating to its ill-fated attempt to produce oil in Alaska, which it abandoned last month after a decade-long campaign that failed to find any meaningful quantities of hydrocarbons.
The announcement of the aborted project was celebrated last month by actress Emma Thompson, who led a campaign against it.
Shell also took a $2 billion hit after halting construction of its Carmon Creek thermal oil sands venture in Canada this week due to “uncertainties” facing the project, including a lack of infrastructure such as pipelines in the area.
Protester: Emma Thompson (Picture: Glenn Copus)
Glenn Copus
And the group took a $3.7 billion charge as it revised down its long-term oil and gas price outlook. This includes a $2.3 billion hit to its North American shale gas business.
“These charges reflect both a lower oil and gas price outlook and the firm steps we are taking. These are difficult, but impactful decisions,” said Van Beurden.
He added that the company’s proposed £39.8 billion takeover of BG Group, announced in April, remained “on track” to be completed early next year.
Shell’s results come two days after rival BP reported a 40% decline in its third-quarter profits to $1.8 billion.
