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Shell profits slump after huge write-offs
[LONDON] Royal Dutch Shell on Thursday reported a sharp drop in third-quarter profits on the back of low oil prices and a hefty US$8.2 billion charge which included write-offs in Alaska and Canada.
Shell's current cost of supplies (CCS) earnings excluding identified items, the company's definition of net income, fell to US$1.8 billion from US$5.85 billion a year earlier and from US$3.835 billion in the previous quarter.
It also fell short of analysts expectations of US$2.74 billion, according to a Reuters poll.
Shell maintained its dividend at 47 cents per share. "These charges reflect both a lower oil and gas price outlook and the firm steps we are taking to review and reduce Shell's longer-term option set," Chief Executive Ben van Beurden said in a statement. "These are difficult, but impactful decisions. I am determined that Shell will become a more focused and competitive company as a result."