Thursday, 30 January 2014 - 13:37
Royal Dutch Shell posts drop in Q4 profit
As expected, Royal Dutch Shell reported a drop in fourth-quarter 2013 profit largely because of increasing costs and lower oil and gas volumes. Shell Logo / Credit: Shell Two weeks ago, the company issued a profit warning stating that it expects lower fourth-quarter earnings due to weak industry conditions in downstream oil products, higher exploration expenses and lower upstream volumes. In the fourth quarter, the company’s earnings were $2.9 billion, compared with $5.6 billion in the fourth quarter of 2012. On a full-year basis, the company’s earnings were $19.5 billion, compared with $25.3 billion in 2012. “Our momentum slowed in 2013. We must improve our financial results, achieve better capital efficiency and continue to strengthen our operational performance and project delivery,” chief executive officer (CEO) Ben van Beurden said in a statement. Van Beurden became the new CEO on January 1, 2014. “Our overall strategy remains robust, but 2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance,” Van Beurden said.