Europe's largest oil company, Royal Dutch Shell Plc, has stated that its global third quarter 2013 earnings fell largely due to a drop in the company's crude oil production in Nigeria, where attacks on pipelines led to shutdowns of production facilities, with the company losing 65,000 barrels per day.
The Hague-based United Kingdom energy giant said earnings on a so-called "current cost of supplies basis" which "strips out the impact of fluctuations of oil prices between when it is produced and when it is sold fell to $4.25 billion from $6.15 billion in the same quarter a year ago".
The company's global Chief Executive Officer, Mr. Peter Voser, who will retire by the end of this year, said in the third quarter financial results that the company's net profit dropped to $4.68 billion from $7.16 billion recorded in the third quarter of 2012 largely due to insecurity in Nigeria. "We are facing headwinds from weak industry refining margins, and the security situation in Nigeria, which continue to erode the near term outlook," said Voser, who will be replaced by Ben van Beurden. Shell said its production in the third quarter fell by two percent to 2.93 million barrels per day, causing its "upstream" earnings to fall 29 percent to $3.46 billion.