MOSCOW (MRC) -- Royal Dutch Shell reported an 89% drop in net income on Wednesday as low oil prices sunk Upstream earnings to a USD1.4 billion loss, as per Petro Global News.
The company posted a first quarter net income attributable to shareholders of USD484 million, down from USD4.43 billion in the same quarter of last year.
Current cost of supplies (CCS) earnings attributable to shareholders fell 83% year-over-year to USD814 million in the first quarter.
First quarter CCS earnings attributable to shareholders excluding identified items were USD1.55 billion compared with USD3.73 billion for the first quarter 2015, or a 58% year-over-year decrease.
Identified items came in at a loss of USD739 million compared to USD1.02 billion in the year ago quarter.
First quarter basic CCS earnings per share excluding identified items decreased to USD0.22, a 63% decline from the first quarter 2015.
"Compared with the first quarter 2015, CCS earnings attributable to shareholders excluding identified items were impacted by the decline in oil, gas and LNG prices and weaker refining industry conditions. Earnings benefited from lower operating expenses, as steps taken by Shell to reduce costs more than offset the increase in operating expenses associated with BG," Shell said.
As MRC reported earlier, in April 2015, Royal Dutch Shell completed a revamp and upgrade of its Singapore ethane cracker. The project increased production for the 800,000-tpy ethylene plant on Bukom Island by 20%. The ethylene and olefins unit is also integrated with Shell’s 500,000-bpd refinery.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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