Shell Profit Tumbles 72% On Low Oil Prices

Shell has reported a sharp drop in profit as low oil and gas prices continue to weigh heavily on the group for a second quarter.


Shares at Royal Dutch Shell fell 3.5% in early trading after the oil giant announced second-quarter profits fell more than 70% to $1.05bn (£800m).

Chief executive Ben van Beurden said: "Lower oil prices continue to be a significant challenge across the business.
"We are making significant and lasting changes to Shell's working practices and cost structure."
The company posted lower income in its gas, petrochemical and oil refining segments as well as oil production.
Crude prices fell to a 12-year low in January, forcing energy companies worldwide to slash spending, cut jobs and sell assets as low oil prices weigh on profitability.
Rivals BP and Statoil also reported worse than expected second-quarter results this week, but French oil producer Total fared better.
Shell's oil production for the second-quarter was lower than expected after output was affected by production losses in Canada and Nigeria.
It stood at 3.51 million barrels a day, below the predicted 3.63 million.
Profits have also been impacted from the higher charges resulting from the company's £35bn merger with BG group earlier this year.
However the oil giant is expecting to make £3.4bn in efficiency savings as a result of this acquisition, and says it is "firmly on track" to deliver a $40bn underlying "operating cost run rate" at the end of the year.
Shell's cost-cutting drive includes an ambitious plan to make £22.7bn from asset sales over the next two years and cut 12,500 jobs over the 2015-16 period.