Shell profits declines as COVID-19 affects the production
Top oil and gas firm has suffered losses due to the COVID-19 pandemic. However, it has increased production in a bid to close the gap and make a profit.
Shell suffers loss and pandemic bites
The Anglo-Dutch oil giant's yearly profits were reduced by 72% to $4.9 billion because there is sharp production interruption. Shell has reacted to the huge drop in the demand of oil and gas demand by countries by reducing their spending.
The company's profit came down to the lowest in two decades as the COVID-19 pandemic continues to bite into various industries that depend on oil. However, the firm's retail operations and trading outlets have helped mitigate the losses.
The company's major profit has declined to $4.75 billion and also gains from crude oil refining dropped immensely. The oil giant remains undeterred and said it plans to increase its dividends by March, which will mean another increase since it cut its payout in February 2021.
Shell losses smaller to ExxonMobil and Chevron
Industry experts say the overall results are not bad, particularly if we consider that close competitor British BP also showed a huge loss of $5.6 billion on Monday.
'' The beginning of this year shows promise as it can be seen in our balance sheet for 2020'' CEO Ben Van Beurden stated.
Shell stocks haven't changed much as it is not performing well in the European energy index. Many oil firms suffered share slums in 2020 as they were available for as low as 870.3 Pence on October 27, their lowest in almost 26 years.
They have made a slight comeback, but still down 42%. Also, competitors like Exxon Mobil and Chevron posted big losses, after also suffering from several lockdowns which reduced the energy demand globally. British Petroleum's loss was its first in 9 years while Exxon Mobil showed about a $21.9 billion loss, the first since it went public.