Royal Dutch Shell slashes 2014 profit due to book error

Royal Dutch Shell slashes 2014 profit due to book error

Friday, January 30, 2015 6:54 pm

Oil giant Shell revised down Friday its 2014 net profit, after uncovering an error in the value of its downstream operations one day after posting annual results.

Shell announced in a new statement that annual net profits fell nine percent to $14.874 billion (13.17 billion euros) last year compared with 2013, hit by collapsing global oil prices.

The Anglo-Dutch oil group on Thursday had stated its 2014 net earnings as $15.052 billion.

Profits after taxation meanwhile tumbled by 67 percent to $595 million in the fourth quarter of last year, compared with the final three months of 2013.

That also marked a downward revision from the fourth-quarter figure of $773 million that was given in Thursday’s annual results statement.

“Subsequent to making that announcement, a stock valuation error in its downstream operations was discovered,” Shell said on Friday.

It added: “The fourth quarter and full year 2014 results of Royal Dutch Shell plc have been revised to take account of this stock valuation error.”



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