Shell's income, earnings continue to drop in Q2

After the fall in the first quarter Shell posted another decline of income and earnings in the second quarter of 2016, mainly due to the low oil prices, the Anglo-Dutch oil and gas company announced on Thursday.

The income attributable to shareholders in the second quarter of 2016 was 1.058 billion euros (1.175 billion U.S. dollars), compared to 3.591 billion euros in the same quarter one year ago. In the first half of 2016 Shell's income attributable to shareholders was 1.494 billion euros, a major drop compared to the 7.582 billion euros in the same period in 2015.

The earnings on a current cost of supplies basis (CCS), excluding identified items, were 941 million euros in Q2 2016, compared to 3.387 billion euros in Q2 2015.

"Downstream and Integrated Gas businesses contributed strongly to the results," CEO Ben van Beurden reacted in a press release. "However, lower oil prices continue to be a significant challenge across the business, particularly in the Upstream."

"We are managing the company through the down-cycle by reducing costs, by delivering on lower and more predictable investment levels, executing our asset sales plans and starting up profitable new projects," the CEO continued.

On Feb. 15, 2016, Shell completed the acquisition of the British oil and gas company BG Group. "The integration of Shell and BG is making strong progress, and our operating performance continues to further improve," Van Beurden commented. Endit