Shell profit slides to $4.8 billion in 2020 as pandemic hits demand By Reuters

© Reuters. FILE PHOTO: Filled oil drums are seen at Royal Dutch Shell Plc’s lubricants blending plant in the town of Torzhok

By Ron Bousso and Shadia Nasralla

LONDON (Reuters) – Royal Dutch Shell (LON:)’s profit dropped to its lowest in at least two decades last year as the coronavirus pandemic hit energy consumption worldwide though the company said it expected to raise its dividend again in a sign of confidence.

Shell’s adjusted earnings for 2020 slumped 71% to $4.8 billion, the lowest since at least 2000, according to Reuters data.

For a graphic on Shell’s annual profits:

Shell’s debt-to-equity ratio rose throughout the year but the Anglo-Dutch oil company was able to avoid the huge losses of its rivals, partly thanks to strong results from its network of more than 45,000 filling stations around the world.

“We are coming out of 2020 with a stronger balance sheet,” Chief Executive Ben van Beurden said in a statement.

Its fourth-quarter profit fell 87% from a year earlier to $393 million – missing analyst forecasts for a profit of $597 million – dragged down by weak liquefied prices, lower production and weak refining margins.

In a sign of confidence, Shell said it expected to raise its dividend for the first quarter of 2021 by 4% from the previous quarter.

That would be the second slight increase since Shell slashed its dividend by two-thirds in the first quarter of 2020 in response to the COVID-19 pandemic, the first reduction since World War Two.

Shell’s net debt at the end of the fourth quarter rose about $2 billion on the previous quarter to $75.4 billion, with its gearing – or debt-to-equity ratio – ticking up to 32.3%.

For a graphic on Shell’s quarterly profits:

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.