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

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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

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