Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Shell’s Voser Says Lower U.S. Gas, Oil Prices Curb Earnings

Jan. 25 (Bloomberg) -- Royal Dutch Shell Plc Chief Executive Officer Peter Voser said lower North American crude and gas prices will curb earnings at Europe’s largest oil company.

Shell, which last year produced more gas than oil for the first time, scaled back investment in the U.S. after gas prices fell to a decade-low in April. Last year, the U.S. oil benchmark West Texas Intermediate averaged $94.15 a barrel, about 18 percent below Europe’s Brent oil, because of increased output and export capacity restrictions.

“For most of the Americas you had the WTI effect, and you had the Canadian prices because of that very low, and that has affected our profitability,” Voser said today in a Bloomberg TV interview in Davos, Switzerland.

Shell’s fourth-quarter earnings excluding one-time items and inventory changes are expected to rise 42 percent to about $6.8 billion, based on a Bloomberg survey of six analysts. The results are due out on Jan. 31.

Brent oil, which has been trading above $100 a barrel since July, and rising U.S. energy prices, will boost industry earnings this year, Voser said.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.