Shell's downstream Q3 earnings fall 43%, chem sales volume dips 2%

31 October 2013 09:39 Source:ICIS News

SINGAPORE (ICIS)--Shell’s downstream operations recorded a 43% year-on-year slump in third-quarter earnings at current cost of supplies (CCS) to $906m (€661m), with sales volumes of chemicals dipping 2%, the Anglo-Dutch energy giant said on Thursday.

The company sold a total of 4.62m tonnes of chemicals during the three-month period ending September 2013, compared with 4.70m tonnes sold in the same period last year, Shell said in a statement.

“Chemicals sales volumes decreased … mainly as a result of an accounting policy change  and contract expirations, partly offset by higher trading volumes,” the company said.

“Chemicals manufacturing plant availability increased to 96% from 89% for the third quarter 2012, as a result of strong operating performance and lower planned maintenance,” it added.

In the first nine months of 2013, Shell’s downstream operations posted a CCS earnings of $3.40bn, representing a 21% decline from the same period last year.

Chemical sales volumes for the period were down 8% year on year at around 13m tonnes.

Shell’s overall third-quarter net profit declined 35% year on year to $4.68bn, with the nine-month profit coming in 27% lower at $14.6bn.

($1 = €0.73)

By Pearl Bantillo