Royal Dutch Shell Group .com Rotating Header Image

Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

Screen Shot 2015-10-26 at 22.21.51

Screen Shot 2015-10-26 at 22.32.49

Screen Shot 2015-10-26 at 21.23.40


Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.

Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.

Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade.

The price of Brent crude averaged $51.40 a barrel during the third quarter, compared with $105.60 in the same period a year ago, and the industry is slashing costs and pulling out of projects as firms struggle to come to terms with the tumbling oil price.

Shell is expected to confirm a £3.7bn write-off from its decision to pull out of exploring for oil in the Arctic which has renewed concerns that it is overpaying to buy BG.

The deal, announced in April, has led to fears Shell’s dividend will be compromised. However chief executive Ben van Beurden has given assurances that retaining its dividend is a priority.

The takeover is going through regulatory approval in the various regions but a decision from Australia’s competition watchdog has been further delayed. It last week postponed a final decision on the takeover to November 19.

BP has also had a difficult quarter but has at last drawn a line under the long running uncertainty surrounding the cost of the fatal 2010 oil spill in the Gulf of Mexico.

It reached a settlement which means it will pay around £49bn over an 18-year period.

SOURCE and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

Comments are closed.

%d bloggers like this: