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Oil giant Royal Dutch Shell on Thursday reported a sharp drop in net profit for the three months through to the end of June, following an unprecedented period of energy market turmoil and significantly weaker oil and gas prices.
The Anglo-Dutch company reported adjusted earnings of $638 million for the second quarter of 2020. That compared with net profit of $3.5 billion over the same period a year earlier and $2.9 billion in the first three months of 2020.
Analysts had warned that “Big Oil” companies, referring to the world’s largest energy majors, were likely to report “horrendous” second-quarter results as coronavirus lockdown measures coincided with an unparalleled demand shock.
The ongoing economic impact of the coronavirus pandemic had prompted Shell to announce that it expected to incur write-downs of up to $22 billion in the second quarter.
In a note to shareholders published June 30, which came shortly after a similar announcement by its peer