Shell’s chemicals segment posts $79m Q3 loss

30 October 2008 08:58  [Source: ICIS news]

SINGAPORE (ICIS news)--Royal Dutch Shell has booked a $79m (€61.62m) third-quarter loss for its chemicals segment on lower margins and sales amid the global slowdown but posted a 22% jump in net profits at group level, the company said on Thursday.

 

“Sales volumes [in the chemicals segment] decreased by 13% when compared to the third quarter of 2007 as a result of lower global demand and the impact of the hurricanes in the US Gulf Coast region,” said the Anglo-Dutch major.

 

Shell’s total chemicals output for the third quarter to 30 September, declined 13% to approximately 5m tonnes, from 5.7m tonnes year on year in line with an 8% drop in the availability of its manufacturing plants during the three months due to hurricane disruptions in the US, it added.

 

Net profits for the company’s chemicals segment for the nine months to 30 September tumbled more than sevenfold to $426m, from $1.55bn year on year.

 

However, the oil and gas major recorded a healthy 22% growth in its third-quarter net profits at group level to $8.45bn, from $6.91bn year on year on record crude prices, which more than compensated for the losses incurred by its chemicals arm, the company said.

 

Net earnings from its exploration and production business arm surged 65% to $5.5bn, from $3.33bn year on year, while its gas and power segment recorded a near quadrupling of profits for the quarter to $2.77bn, from $568m, it added.  

 

“We delivered satisfactory earnings and operating performance in the third quarter of 2008. We are watching the world economic situation closely,” said Jeroen van der Veer, Shell CEO.

 

“Our strategy remains to pay competitive and progressive dividends and to make significant investments in the company for future profitability,” he added.

 

($1 = €0.78)

 

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By: Bohan Loh
+65 6780 4359

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