Oil major Shell's first quarter 2009 CCS earnings were 58% lower than in the same quarter a year ago.
First quarter 2009 performance was affected by the weaker global economy, with a challenging upstream and downstream business environment, Shell CEO Jeroen van der Veer explains.
First quarter 2009 reported earnings were 2.57 billion compared to earnings of 6.7 billion in the same quarter a year ago.
Upstream oil and gas volumes were impacted by ongoing security challenges in Nigeria, OPEC quota restrictions and weakening industrial demand for natural gas, Shell says.
Refinery intake and marketing and chemicals sales volumes were impacted by the weak economic environment across all regions.
Oil and gas production, including oil sands production, for the first quarter 2009 was 3,396 thousand barrels of oil equivalent per day (boe/d).
Excluding the impact of divestments, production sharing contracts (PSC) pricing effects, OPEC quota restrictions and impacts from the security situation in Nigeria, production was broadly similar to the same quarter last year.
Liquefied Natural Gas (LNG) sales volumes of 3.06 million tonnes were 13% lower than in the same quarter a year ago. Excluding the impacts from the security situation in Nigeria, LNG sales volumes were broadly similar compared to the same quarter last year.
Oil Products marketing sales volumes were 6% lower than in the first quarter 2008. Excluding the impact of divestments, marketing sales volumes decreased by 3%. Chemical product sales volumes in the first quarter 2009 decreased by 21% compared to the first quarter 2008.
Oil Products refinery availability was in line with the first quarter 2008 at 92%. Chemicals manufacturing plant availability was 92%, 3% lower than in the first quarter 2008. Oil Sands upgrade availability was 96% compared to 94% in the same quarter last year.
Despite a crumbling cash flow, Shell intends to continue pumping in funds.
We continue to make significant investments in the company for future profitability. Industry conditions remain challenging, and our focus is on capital discipline and costs, van der Veer adds.
Capital investment for the first quarter 2009 was 5.2 billion. Net capital investment (capital investment, less divestment proceeds) for the first quarter 2009 was 5.1 billion.