20 Jan 2014

Shell issues profit warning

1:50 pm on 20 January 2014

Oil company Shell has issued a warning for its December quarter saying profit is expected to be significantly lower than has been the case recently.

Shell says it expects to make about $US2.9 billion in the quarter, instead of the $US4 billion it previously forecast.

That would be a 70% slump on the fourth quarter in 2012.

Chief executive Ben van Buerden, who took over at the beginning of the year, says weak industry conditions in downstream oil products, higher exploration expenses and lower upstream volumes are to blame for the result.