Royal Dutch Shell Plc reported the lowest quarterly earnings in 11 years and missed estimates by more than $1 billion as a mix of lower energy prices, weaker refining margins and production halts weighed on Europe’s largest oil company.
Profit adjusted for one-time items and inventory changes sank 72 percent from a year earlier to $1.05 billion, The Hague-based Shell said Thursday. Analysts had expected a $2.16 billion result.
Chief Executive Officer Ben Van Beurden, who this year completed Shell’s record purchase of BG Group Plc, has vowed to boost savings from the acquisition following a two-year slump in crude. While Brent’s 25 percent rebound last quarter provided some prospect of relief, the rally is now fading while the safety net provided by refining has given way. Production shutdowns in Nigeria, Canada and the Netherlands increased the pain for Shell.