Shell records losses exceeding $ 21 billion

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Reuters

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The giant oil group “Royal Dutch Shell” announced a large net loss of $ 21.7 billion in 2020 due to lower energy prices and the massive decline in demand for it due to the Corona epidemic.

The Dutch-British group said in a statement that it made a net profit of $ 15.8 billion in 2019, before the start of the health crisis that led to a long-term decline in oil and gas consumption.

After the first quarantine measures were imposed in the spring, oil prices fell to an all-time low, and even briefly in early April.

But it improved recently and reached about fifty dollars a barrel, although it remains below the level it reached in early 2020.

Shell’s accounts were affected, especially in the second quarter of last year, from the decline in the value of assets, reflecting the market situation, which caused a loss of $ 18 billion.

It resumed recording profits in the third quarter, but returned in the fourth quarter to recording losses of $ 4 billion at the time.

The epidemic damaged the oil market and forced major companies to adapt to lower prices.

Shell’s annual loss is greater than that disclosed by BP on Tuesday, at $ 20.3 billion.

Source: AFP



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