Thursday July 30, 10:40 AM
Energy giant Shell profit slumps 67%
LONDON (AFP) - British energy (LSE: BGY.L - news) giant Royal Dutch Shell (Amsterdam: RDSA.AS - news) said on Thursday that its second-quarter net profit plunged 67 percent to 3.82 billion dollars (2.71 billion euros) on tumbling crude oil prices.
On a "current cost of supplies" basis, adjusting for changes in the value of oil held in stock, Shell (LSE: RDSB.L - news) said profits dived 70 percent to 2.34 billion dollars in the three months to June, compared with the same period last year.
Shell said production fell five percent to 2.96 million barrels of oil equivalent per day, as output was hit once again by ongoing violence in Nigeria.
Revenues tumbled 51.4 percent to 63.88 billion dollars in the second quarter.
"Our second quarter results were affected by the weak global economy," said Chief Executive Peter Voser in comments accompanying the release.
"This weakness is creating a difficult environment both in upstream and downstream" operations.
Oil prices struck record peaks above 147 dollars per barrel in July 2008 but then nosedived as a savage global economic slowdown slashed demand for energy.
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