Shell: posts first-quarter loss amid oil price slump

(CercleFinance.com) - Royal Dutch Shell said on Thursday that it swung to a loss in its first quarter, after making heavy write-downs due to the collapse of oil prices.


The Anglo-Dutch giant said its loss on a current cost of supplies (CSS) basis came in at 24 million dollars in the past quarter, compared to a profit of over 6 billion dollars last year.

The oil major said it booked charges of 2.9 billion dollars in the quarter due to the fall in oil, gas and LNG prices, but also due to weaker refining and chemicals margins and lower sales volumes.

Citing the risk of a "prolonged" period of weaker prices and an uncertain outlook for demand, Shell has decided to cut its first-quarter dividend from 47 cents per share to 16 cents per share.

Analysts at Berenberg saw an "historic" move in this cut.

"We are surprised that the company has cut the dividend at this stage and expect the market to take the news negatively," the German broker said.

Indeed, the "A" share listed on Euronext Amsterdam fell by over 7% in early morning trading.

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