Global oil giant Royal Dutch Shell posted a net loss of $18.1 billion in the second quarter of 2020, according to its financial results statement released on Thursday.
The Anglo-Dutch company's net loss in the April-June period of this year is down from a net income of $3.1 billion in the second quarter of 2019.
Revenue decreased by 64% to $32.5 billion in the second quarter of 2020, from $90.5 billion the same period of last year.
For the first half of 2020, Royal Dutch Shell saw its revenue decline to $92.5 billion -- a 46.9% fall from $174.3 billion recorded in the first six months of 2019, according to the statement.
The weak results "reflected lower realized prices for oil, LNG and gas, lower realized refining margins, oil products sales volumes and higher well write-offs,
compared with the second quarter 2019," the statement said.
The net loss "included an impairment charge of $16.8 billion post-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," it added.
Shell announced on June 30 that the current low oil price environment, as a result of weak global oil demand due to the novel coronavirus (COVID-19), could lower the value of its assets by up to $22 billion in the second quarter of 2020.
The energy giant said it estimates the price of Brent crude oil to average $35 per barrel this year, and $40 a barrel next year, down significantly from the average of $64 per barrel in 2019.
By Ovunc Kutlu