Shell is Probably Reporting A Significant Annual Loss

Oil and gas group Shell will probably announce on Thursday that it suffered many billions of dollars in losses in the corona year 2020.

 

Due to substantial write-offs during the first lockdown last spring, deep red figures seem inevitable, analysts estimate.

In the second quarter of last year, Shell fell below the line by $ 18.1 billion, the most considerable quarterly loss. Subsequently, a modest profit went into the books in the period that followed, but this was nowhere near sufficient to brush away the previous mega loss.

Far fewer planes flew last year, fewer cars drove, and the industry shifted into a lower gear. As a result, there was less demand for oil and gas, and oil prices collapsed temporarily.

These even turned negative in futures trading for the first time in history. At one point, traders had to pay to be able to sell their oil to someone.

The corona crisis already forced Shell to take significant measures. For example, for the first time since World War II, the dividend for shareholders was reduced. In addition, Shell announced it would cut 7,000 to 9,000 jobs worldwide, roughly one-tenth of the total workforce.