Shell warns of plunge in profits

|By:, SA News Editor

Shell (RDS.A, RDS.B) has warned that it expects its Q4 profit to be "significantly lower than recent levels of profitability," with the company estimating that adjusted earnings on a current cost of supplies basis will plummet to $2.9B from $7.3B a year earlier. Consensus is for $4B.

Shell cited oil and gas prices, "weak industry conditions in downstream oil products, higher exploration expenses, and lower upstream volumes" as reasons for the drop in earnings.

Shell is due to publish its full results on January 30. (PR)