Shell Reports $14 Million Loss For Third Quarter
HOUSTON (AP) _ Shell Oil Co., citing lower crude oil prices and $90 million in restructuring costs, on Friday reported a $14 million loss for the third quarter.
The loss came on $5.5 billion in revenues and compares with a profit of $227 million on revenues of $6.2 billion for the same period a year ago, Shell said.
For the first nine months of the year, Shell earned $43 million on revenues of $16.5 billion, compared with earnings of $590 million on revenues of $17.1 billion for the same period in 1990.
Shell reports no per-share earnings because it is solely owned by the Royal Dutch-Shell Group of Companies.
″The key factor in this decline was significantly lower crude oil prices, which averaged about $5 per barrel lower than in the 1990 period, when crude oil prices increased sharply due to events in the Middle East,″ Shell president and chief executive officer Frank R. Richardson said.
″This price decline more than offset the benefits of increased domestic crude oil production in the 1991 quarter,″ Richardson said.
Oil and Gas Exploration and Production earnings were $45 million for the quarter, which was a decrease of $158 million compared to a year earlier.
In addition, the company spent $60 million in restructuring operations at its Wilmington Manufacturing Complex to prepare for the sale of a substantial portion of the complex. Those costs were partially offset by the sale of an equity pipeline interest and a prior-year tax adjustment.
Another $30 million in the loss was related to the settlement of an alleged price-fixing and antitrust lawsuit with the city of Long Beach, Calif. In August, Shell settled its portion of the suit, which originally was filed in 1975 against several oil companies. Shell did not admit any wrongdoing in the case, said Eydie Pengelly, spokeswoman for Shell.
Additional costs in the quarter came from a work-force reduction. Benefits and payouts for the reductions amounted to $90 million, Ms. Pengelly said.