Royal Dutch Shell PLC, which has operations in Canada, reported disappointing earnings and more job cuts Thursday.
Shell blamed a weak refining business and said it will cut 1,000 more jobs and freeze its dividend this year.
Shell’s Muskeg River oilsands mine in northern Alberta. The company announced 1,000 job cuts Thursday.Shell’s Muskeg River oilsands mine in northern Alberta. The company announced 1,000 job cuts Thursday. (CBC)
The company didn’t disclose where in its worldwide operations it would cut positions. Shell employs more than 8,200 people across Canada, including in its oilsands operations in Alberta and offshore natural gas production in Nova Scotia, as well as refineries in Alberta, Ontario, and Quebec.
Net profit was $1.96 billion US, compared with a loss of $2.81 billion in the same period a year ago, when the company cut the estimated value of its oil assets after a sharp drop in the world price of oil.
Stripping out that writedown, however, profit fell 75 percent to $1.18 billion from $4.79 billion.
“We are facing challenging market conditions,” chief executive Peter Voser said on a conference call. “Especially downstream [in refining] and natural gas, despite the headline increase in oil prices, and the outlook for 2010 remains difficult.”
The results came a day after Calgary-based Husky Energy Inc. reported an increase in quarterly earnings compared with a year ago as cost cutting more than offset lower commodity prices.
Husky earned $320 million or 38 cents per diluted share in the quarter ended Dec. 31 compared with a profit of $231 million or 27 cents per diluted share in the same period of 2008.
