Shell has become the latest major oil company which has reported a weaker level of profit in the third quarter as the prices of crude oil and gases dented the net result of the company. Though, this Anglo-Dutch company had managed to beat the expectations of the analyst due to the strong income of the LNG trading and oil.
The net earnings of Shell were reported to be $4.676 billion for the recently concluded third quarter which is down by 15% for this year but more than the second quarter of the current year. The net result for the first three quarters of the 2019 was lower than the period of 2018 by 14% which has again highlighted the price situation in energy which has been difficult across the commodities.
The prices of oil have been proving to be resilient to the OPEC’s efforts of cutting production and not least due to the deepening concern about the global growth economically and hence the demand for oil. With the trade war between US and China going on for more than a year, it can be understood that the confidence in the positive outcome of the most recent round of the talks is not very common.
Still, Shell is the world’s biggest gas organization and the things have not been bullish for them either. United States’ production surge has exceeded by far the rise in the demand has led to a tricky situation for the local gas producers however the demand in China has seen a slow down too which affects the prices more as well.
LNG however has been doing well for Shell at least in spite of the prices not trending higher.