Shell profits hit by shale charges and Nigeria woes
Shares in Shell have been hit hard as the FTSE 100 company announced a "clearly disappointing" 60% dive in its profits for the second quarter.
Shell reported a $2.4bn (£1.6bn) profit for the three months to the end of June, down from $6bn (£3.94bn) the year before, as the group reeled from a $2.1bn impairment charge, mostly relating to its US shale oil and gas operations, as well as costs relating to disruptions in Nigeria.
To make matters worse, the oil price traded about 5% below its level in the year-earlier period, while a weakening Australian dollar hit profits further.
Peter Voser, who unexpectedly announced in May that he would be retiring as chief executive next year, 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."
Stripping out the impairment charge, Shell's profits fell by 20% to $4.6bn (£3.03bn). Its shares fell by 111.50p to 2126.0p.