Royal Dutch Shell profits dropped 60pc to $2.4bn (£1.6bn) in the second quarter after concluding its shale oil and gas assets in North America were worth $2.1bn less than it had thought.
8:15AM BST 01 Aug 2013
Excluding the impact of the big one-off writedown, profits still fell 20pc to $4.6bn, a result chief executive Peter Voser admitted was “clearly disappointing†and blamed in part on the deteriorating security situation in Nigeria.
Shell said it would embark on a major programme of asset sales, picking up the pace of divestment from the $21bn it has sold off over the past three years. It launched a strategic review of its North American shale assets, as well as a previously-announced strategic review in Nigeria.
“We are not targeting oil and gas production volumes; rather we are focusing on financial performance,†Mr Voser said on Thursday.
Mr Voser surprised the market in May by announcing his decision to retire and will be replaced next year by Ben van Beurden.
Shell said the $2.1bn write-down “predominantly related to liquids-rich shales properties in North America†and reflected “the latest insights from exploration and appraisal drilling results and production informationâ€.
Other energy giants have booked similar writedowns over the past year as the shale glut in North America affected the profitability of their assets.
Shell’s underlying result was well below the expectations of analysts, who had predicted broadly flat profits.
Mr Voser said: “Higher costs, exploration charges, adverse currency exchange rate effects and challenges in Nigeria have hit our bottom line. These results were undermined by a number of factors – but they were clearly disappointing for Shell.â€
The security situation in Nigeria, where Shell is struggling to stem oil theft and spills, has forced the company to shut down various oil production assets, and cost it at least an extra $250m in the quarter.
Exploration costs rose to $1.2bn including $600m for unsuccessful wells.
The impact of currency effects of the Australian dollar on a deferred tax liability led to a $450m hit.
Shell announced a dividend of 45 cents per share, up 5pc on the same quarter last year but unchanged from the first quarter of 2013.
Shares in Shell fell nearly 4pc in early trading in London to £22.29.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
