Royal Dutch Shell profits dive, blames lower energy prices

Royal Dutch Shell (LON:RDSB) has seen its shares fall to an 18-month flow after the oil giant’s profit fell 32%.

Cash flow from operations were also down 21%, but this isn’t thought to have any impact on the dividend.

The company blamed lower energy prices as reason for the decline, this is despite Brent oil spending much of 2019 above $60.

Royal Dutch Shell Chief Executive Officer Ben van Beurden said: “the strength of Shell’s strategy and portfolio has enabled delivery of competitive cash flow performance in 2019 despite challenging macroeconomic conditions in refining and chemicals, as well as lower oil and gas prices. We generated $47 billion in cash flow from operating activities excluding working capital movements and distributed over $25 billion in dividends and share buybacks to our shareholders.

We remain committed to prudent capital discipline supported by world-class project delivery and are looking to further strengthen our balance sheet while we continue with share buybacks. Our intention to complete the $25 billion share buyback programme is unchanged, but the pace remains subject to macro conditions and further debt reduction.”

Shares in Royal Dutch Shell (LON:RDSB) were down 2.6% in lunch time trade on Thursday.

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