StockMarketWire.com - Royal Dutch Shell has reported that its second quarter results reflected lower prices for oil, LNG and gas as income attributable to shareholders was a loss of $18.1bn during the quarter.

The company said this included an impairment charge of $16.8bn post-tax or $22.3bn pre-tax, as a result of 'revised medium- and long-term price and refining margin outlook assumptions in response to the COVID-19 pandemic and macroeconomic conditions as well as energy market demand and supply fundamentals'.

Half year segment earnings were a loss of $6.1bn, which included a post-tax impairment charge of $8.2bn, mainly related to the Queensland Curtis LNG and Prelude floating LNG operations in Australia.

The company reported adjusted earnings of $0.6bn for the second quarter of 2020, reflecting lower realised prices for oil, LNG and gas, lower realised refining margins, oil products sales volumes and higher well write-offs, compared with the second quarter of 2019.

Royal Dutch Shell announced cash flow from operating activities for the second quarter was $2.6bn, which included negative working capital movements of $4bn.

Compared with the second quarter of 2019, total production decreased by 2%, which the company said was mainly due to more maintenance activities in Australia and lower demand.

In the first half of 2020, total production rose 5% compared with the same period in 2019, mainly due to less maintenance activities, new fields and field ramp-ups, as well as the transfer of the Rashpetco operations in Egypt from the upstream segment.

Cash flow from operating activities for the first half of 2020 was $6.6bn.

Chief executive Ben van Beurden said: 'Shell has delivered resilient cash flow in a remarkably challenging environment. We continue to focus on safe and reliable operations and our decisive cash preservation measures will underpin the strengthening of our balance sheet.' At 9:25am: [LON:RDSA] Royal Dutch Shell PLC share price was -4.9p at 1221.9p



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