Shell reported a 44% YoY fall in Q1-2014 net profit to $4.5 billion. The fall was attributed to a $2.9 billion charge reflecting impairments related to refineries in Asia and Europe.
Profit from upstream activities remained flat at $5.7 billion, supported by stronger integrated gas results as well as higher gas realizations. However, this was offset by the impact of exploration well write-offs, and higher costs and depreciation.
Profit from downstream activities stood at $1.6 billion, down by 15% YoY, impacted by lower industry refining margins and trading results.
Q1-2014 financial highlights
· Revenue of $112 billion, down 3% YoY
· Capex of $7.4 billion, down 6% YoY; upstream capex up 27% YoY to $9.3 billion
· Divestment proceeds of $500 million
Q1-2014 operational highlights
· Production at 3.2 MMBOE/d (46% liquids), down 9% YoY; mainly due to divestments, license expiries and security issues in Nigeria
· Liquids production at 1.5 MMBOE/d, down 10% YoY, mainly due to lower production from Nigeria
· Gas production at 10.2 MMcf/d, down 8% YoY
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