AMSTERDAM (AP) — Royal Dutch Shell PLC, Europe's largest oil company, says third quarter earnings fell due to a weaker refining market and higher exploration and production expenses. Output fell due to shutdowns of facilities for maintenance, notably in Nigeria, where Shell has suffered from attacks on pipelines.
The company reported earnings on a current cost of supplies basis — which strips out the impact of fluctuations of oil prices between when it is produced and when it is sold — of $4.25 billion (3.10 billion euros), compared with $6.15 billion in the same quarter a year ago.
Net profit, which does not strip out those fluctuations, fell to $4.68 billion from $7.16 billion.
"We are facing headwinds from weak industry refining margins, and the security situation in Nigeria, which continue to erode the near term outlook," said outgoing CEO Peter Voser. But he said the company's performance will improve in 2014 as investment costs decline and capacity returns online.
Shares in the company were down 3.6 percent at 24.54 euros at the open.
Production, meanwhile, fell by 2 percent to 2.93 million barrels per day, causing the division's earnings to fall 29 percent to $3.46 billion.
Outpatient ROBOTIC HYSTERECTOMY. Trust an experienced Robotic Surgeon.