Shell Profit Drops 44%, Matching Estimates, as Crude Tumbles
- 8 years ago
Royal Dutch Shell Plc, which is on the brink of completing the oil industry’s largest deal in a decade, reported fourth-quarter profit that matched analyst estimates.
The shares rose the most in almost seven years amid a rebound in global stocks and a selloff in the dollar.
Profit adjusted for one-time items and inventory changes shrank 44 percent to $1.8 billion, near the midpoint of the preliminary $1.6 billion-to-$1.9 billion range it gave last month, Shell said Thursday.
Crude’s collapse has slashed earnings for oil companies from Exxon Mobil Corp. to BP Plc, leaving them struggling to strike a balance between investing for growth and making shareholder payouts.
The Hague-based Shell is betting its $50 billion acquisition of BG Group Plc will help it maintain dividends and increase oil and gas production at a time when cash flow is shrinking.
The shares rose the most in almost seven years amid a rebound in global stocks and a selloff in the dollar.
Profit adjusted for one-time items and inventory changes shrank 44 percent to $1.8 billion, near the midpoint of the preliminary $1.6 billion-to-$1.9 billion range it gave last month, Shell said Thursday.
Crude’s collapse has slashed earnings for oil companies from Exxon Mobil Corp. to BP Plc, leaving them struggling to strike a balance between investing for growth and making shareholder payouts.
The Hague-based Shell is betting its $50 billion acquisition of BG Group Plc will help it maintain dividends and increase oil and gas production at a time when cash flow is shrinking.