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Shell is making a loss due to an impairment of $ 16.8 billion

Royal Dutch Shell PLC on Thursday fluctuated to a significant loss based on current second quarter delivery costs due to impairments and lower prices, volumes and margins. It also lowered the interim dividend in line with the first quarter payment.

The Anglo-Dutch oil giant posted a CCS loss of $ 18.38 billion in April-June, up from a profit of $ 3.02 billion a year earlier. The net loss came in at $ 18.13 billion, which also reflected $ 16.8 billion compared to lower projections for oil and gas prices.

Excluding identified items, the company posted a CCS profit of $ 638 million, down 82% from $ 3.46 billion a year earlier. This exceeded expectations, as the company-built market consensus predicted an adjusted CCS loss of $ 674 million.

Shell has announced an interim dividend of 0.16 cents per share for the period. This was in line with 0.16 cents for the first quarter and lower than the 0.47 cents payment for the second quarter of 2019.

Regarding the third quarter of the year, Shell warned of potential production cuts: “Due to the question of legal requirements and / or infrastructure limitations, Shell may need to take measures to limit or reduce oil and / or gas production, LNG Liquefaction as well as the use of refining and chemical plants and comparable sales volumes may be affected. “

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT