Oil and Gas Concern Shell is Out of the Red
Oil and gas group Shell achieved a profit in the past quarter, after a mega loss in the previous period.
The company recorded much less depreciation and was able to benefit from cost savings and improving oil prices. Compared to a year ago, there was a sharp decline in the result.
Net income was $ 489 million. That was less than $ 18 billion in the second quarter, which was Shell’s most significant loss ever. In the third quarter of 2019, a net profit of $ 5.9 billion was posted.
Adjusted earnings based on the current estimated cost of inventory (CCS), the primary profit indicator for Shell, amounted to $ 955 million. That was $ 638 million in the second quarter and nearly $ 4.8 billion a year earlier.
Total sales were $ 44.7 billion against $ 32.5 billion in the previous period and $ 89.5 billion a year ago.
Shell announced in September that 7,000 to 9,000 jobs would be cut to cut costs due to the corona crisis. The job losses should lead to cost savings of $ 2 billion to $ 2.5 billion a year. No further details on these restructuring plans were disclosed in the trade release.