Low oil price affects Shell's Q2 results

Jul 30, 2009, 6:57 GMT

Amsterdam - Lower oil prices resulted in substantially lower earnings for Royal Dutch Shell in the second quarter of 2009, the company said in its quarterly report released on Thursday.

The petrol corporation saw its net quarterly earnings fall to 2.3 billion dollars compared with 7.9 billion dollars for the same period last year. Analysts had estimated net earnings of 2.48 billion dollars.

Oil and gas production amounted to 2.960 million barrels a day, compared with 3.3 million barrels last year.

Shell said it would pay its shareholders 0.42 dollars in dividend per share, an increase of 5 per cent over the dividend per share for the same period in 2008 and also more than the 0.40 dollars per share expected by analysts.

Royal Dutch Shell CEO Peter Voser said his corporation continues to suffer from the global economic crisis.

'Energy demand is weak', he said, adding 'there is excess capacity in the market' while industrial costs remained high.

A 'quick recovery' was not to be expected. But, he said, Shell would 'adapt to this new situation.'

Shell's restructuring programme 'Transition 2009,' first announced in June, would 'sharpen the company's focus on delivery and affordability,' Vosen said.

Among others, Transition 2009 includes a reduction by 20 per cent of senior management positions and 'substantial further staff reductions'.