This is the reason that Shell is now heavy loss

Posted on 29-10-2015 at 10:39 by CasperH – 43 Comments”

In the past year touched our Royal oil and gas company well into the red figures, but why actually?

The loss lies not to: 6.1 billion dollars on the basis of current inventory costs (CCS) and including exceptional items. The stop of oliewinningsprojecten in Alaska (t.w.v. 2.6 billion) and Canada ($2 billion) to this loss led, but also the discontinuation of a project around schaliegasvelden in the United States was good for a write off of $ 2.3 billion. These projects are shut down because they do not have the earnings produced that is hoped. Previously all the oil fields in Nigeria in the sales rolled.

But even if such costs are not to be counted is the income compared to last year, a steep fall. The extraordinary expenses were excluded, there was a rise of 1.8 billion dollars. That is a lot of money, but last year was 5.8 billion dollars. The low oil prices of the last period are especially guilty of.

Ceo Ben van Beurden decided to a write-down of $ 8 billion on unprofitable projects in total, a hard measure. In total, the net loss, therefore, in the third quarter from 7.4 billion dollars, while last year 4 billion dollar profit was made. Moreover, production of oil and gas increased by 3% to 2.88 million barrels per day.

Unfortunately, Shell has suffered from the decline in oil prices, the prices for oil and gas layers in the same quarter last year, respectively, 51% and 18% higher than now, and therefore, the margins are under pressure. Earlier it was announced that 6500 jobs will be deleted. Yet investors are not very impressed, the price declined by only one percent.

Shell will make investments considerably reduce the quantity in the direction of the black figures. Is still working on the final acquisition of BG, a British gas company. That acquisition at the beginning of next year should have completed.