Royal Dutch Shell has seen its third-quarter earnings fall to $4.2 billion from $6.2 billion due to higher costs across much of its business. The Anglo-dutch oil major said operating, exploring and maintenance expenses had all risen.
It said it was seeing lower profit margins from its refinery business – which applies across the industry.
Shell’s CEO Peter Voser said: “We are facing headwinds from weak industry refining margins, and the security situation in Nigeria, which continue to erode the near term outlook.”
Voser said the company has started up a series of new oil and gas fields in the last few months, in deep water, integrated gas, and in longer-term plays such as Iraq.
These new fields are part of a project flow that is expected to drive Shell’s cash flow in 2014 and beyond, coming alongside a reduction in net spending next year, Voser added.
On the plus side, Royal Dutch Shell said its liquids business had performed well in the Americas and it had seen higher production from its shale energy fields.
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