Shell profits plunge 82% as pandemic hits energy demand
LONDON (AP) — Royal Dutch Shell said Thursday that its second-quarter earnings plunged 82% as the COVID-19 pandemic slashed energy prices and demand.
Shell reported that adjusted profit, which excludes one-time items and changes in the value of inventories, dropped to $638 million from $3.46 billion in the same period last year.
Shell took a charge of $16.8 billion amid reduced expectations for energy prices and refining margins, as well as weaker energy demand due to the pandemic. Including this charge, the company reported a net loss of $18.1 billion, compared with net income of $3 billion pounds a year earlier.
CEO Ben van Beurden says the company is facing a “remarkably challenging environment” and focusing on “decisive cash preservation measures” to underpin the balance sheet.