Shell 4Q Earnings Plunge to $2.2 B. 2014 Capex Reduced

Royal Dutch Shell today reported earning for fourth quarter 2013 earnings of $2.2 billion compared with $7.4 billion in the same quarter a year ago. Full year 2013 CCS earnings were $16.7 billion compared with $27.2 billion in 2012.

Fourth quarter 2013 CCS earnings excluding identified items were $2.9 billion compared with $5.6 billion in the fourth quarter of 2012. Full year 2013 CCS earnings excluding identified items were $19.5 billion compared with $25.3 billion in 2012.

The company said that the earnings were impacted by higher depreciation, increased exploration expenses, lower upstream volumes and weak industry conditions in downstream oil
products.

Capital spending will be reduced. In 2013, this totalled $46 billion, including $8 billion of acquisitions. In 2014, Shell expects total capital spending of around $37 billion, including $2 billion of previously announced acquisitions.