Compared to the €6bn profit it made in the first quarter of 2019, the €24m loss it posted by the Dutch oil and gas giant Shell was an unmitigated disaster. Net income attributable to shareholders on a current cost of supplies (CCS) basis and excluding identified items, came in at $2.9bn for the first quarter of 2020. Shell’s board slashed the company’s first quarter dividend to a paltry 16 cents per share, a 66 percent fall from the end of 2019.
CEO Ben van Beurden wasn’t exaggerating when described the situation as extremely challenging. The pandemic has decimated demand for oil, as millions of commuters remain home to work or have lost their jobs entirely. Long-term, of course, the outlook for oil is bleak since the world is transitioning rapidly to greener, less environmentally offensive modes of transport.
