29 October 2009 09:14 [Source: ICIS news]
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LONDON (ICIS news)--Shell’s chemical segment reported a 14% increase in third-quarter earnings on a current cost of supply (CCS) basis to $169m (€115m) due to improved income from investments, the oil giant said on Thursday.
The increase in chemical earnings came despite lower realised margins for the third quarter, Shell said in a statement.
Chemicals sales volumes fell by 5% to 4,723,000 tonnes compared with the same quarter last year, even though manufacturing plant availability increased to 95%, 9% higher than in the third quarter 2008, which was affected by hurricanes in the ?xml:namespace>
The weak global economy continued to have an impact on downstream volumes in the oil products and chemicals segments, the company said.
Shell's group earnings for the quarter on a CCS basis were 72% lower at $3.0bn, with upstream earnings significantly lower at $1.5bn compared with $8.6bn in the third quarter of 2008.
“Our third-quarter results were affected by the weak global economy. Upstream and downstream profitability has been sharply reduced compared to year-ago levels,” said Shell CEO Peter Voser.
“We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery,” he added.
Shell will continue to focus on improving its competitive cost position and increasing personal accountabilities, Voser said, adding that the company has reduced operating costs by $1.0bn in the first nine months of 2009 compared with the same period in 2008.
($1 = €0.68)
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