The Sun (Malaysia)
Shell posts US$7.4b net loss in third quarter
> Due to huge write-downs after cancelling Alaskan, Canadian projects and slump in oil prices
LONDON: Shell dived into a US$7.4 billion (RM31.6 billion) thirdquarter net loss on huge write-downs after scrapping costly projects in Alaska and Canada, and on slumping oil prices, it said yesterday.
The quarterly loss after taxation – equivalent to € 6.72 billion – in the three months to September contrasted with a net profit of US$4.46 billion in the same period of 2014, Royal Dutch Shell said in a statement.
The Anglo-Dutch energy giant took a net charge of US$8.22 billion that was “mainly related to management decisions to halt longer-term projects and a downward revision to the oil and gas price outlook”.
Shell had announced on Tuesday it would halt construction of its Carmon Creek thermal oil sands venture in Canada due to “uncertainties” facing the project, including a lack of infrastructure.
The cancellation of the 80,000 bpd Carmon Creek project came after the Anglo-Dutch oil major halted its search for oil off the Alaskan coast last month at a cost of several billion dollars.
Shell revealed yesterday that it took a US$2.58 billion charge for Alaska, and a US$2.03 billion hit for Carmon Creek.
It also took impairment charges totalling US$3.69 billion that were triggered by the “downward revision of the longterm oil and gas price outlook”.
That included US$2.31 billion of charges linked to North American shale gas activities. – AFP