Shell's adjusted earnings dropped by 80% to $955 million in the third quarter of this year compared to the $4,7 billion level of the same period of 2019, according to company's financial results on Thursday.
The company's net debt reduced by $4.4 billion to $73.5 billion in this period but the results came in a challenging macroeconomic environment, Shell said in a statement.
Decreasing oil prices combined with the falling demand for oil due to the COVID-19 has negatively affected the balance sheets of the oil companies reversing the expectations.
Shell also announced a cash allocation framework that will enable it to reduce debt, increase distribution to shareholders and allow for disciplined growth as it reshapes its business for the future of energy.
"Ongoing work to reshape Shell's portfolio is expected to deliver continued cash generation to grow its low carbon businesses as well as to increase shareholder distributions, making a compelling investment case," said in the statement.
Shell aims to become a net-zero energy emissions company by 2050 or sooner, according to the statement.
"We must continue to strengthen the financial resilience of our portfolio as we make the transition to become a net-zero emissions energy business. Our decisive actions taken earlier in the year have solidified our operational and cash delivery," Ben van Beurden, Royal Dutch Shell CEO, was quoted as saying in the statement.
By Nuran Erkul Kaya