Shell: shares fall after weak set of results
(CercleFinance.com) - Royal Dutch Shell shares are down on Wednesday after the Anglo-Dutch oil major reported weak quarterly figures.
The energy giant said that second-quarter earnings, on a current cost of supplies (CCS) basis, dropped by 42% to 3 billion dollars, from 5.2 billion dollars a year ago.
Excluding non-operating and one-off items, the result was 3.5 billion dollars, down 26% from the 4.7 billion dollars reported for the second quarter of 2018.
CEO Ben van Beurden blamed this "earnings volatility" on "challenging macroeconomic conditions," as well as lower gas prices.
"Shell has reported a weak set of second-quarter results (...) with all divisions missing expectations," commented analysts at Berenberg.
The German broker pointed out that its upstream division missed by 15%, due to weaker production, while the downstream unit missed by 25%, hurt by weaker chemicals and its refining margin.
Shell "A" shares were trading 4.4% lower in London after these results.
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