Shell Has Biggest Loss in More Than a Decade on Price Slump

Shell reported its biggest net loss in more than a decade after halting some operations and lowering oil-price expectations.

Royal Dutch Shell Plc reported its biggest net loss in more than a decade after halting some operations and lowering its oil-price expectations, resulting in a $7.89 billion charge.

The company, which is buying BG Group Plc in the industry’s largest deal this year, reported a third-quarter net loss of $7.42 billion, compared with a profit of $4.46 billion a year earlier. The charges include $4.61 billion resulting from the withdrawal from drilling in Alaska and an oil-sands project in Canada, and $3.69 billion triggered by cuts to its outlook for oil and natural gas prices. Shares of the company fell as much as 1.8 percent.

Adjusted for these one-time items and inventory changes, profit dropped 70 percent to $1.77 billion, The Hague-based Shell said Thursday in a statement. That missed the $2.92 billion average estimate of 17 analysts surveyed by Bloomberg.

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