World

Shell reports net loss of $7.4 billion after Alaska drilling exit

FILE - In this Thursday, May 14, 2015 file photo, the Royal Dutch Shell oil drilling rig Polar Pioneer is towed toward a dock in Elliott Bay in Seattle. Royal Dutch Shell reported a third quarter loss of $7.4 billion Thursday, Oct, 29, 2015 as it re-organized and canceled projects, including drilling in Alaska, to cope with the plunge in oil prices. The net loss compares with a profit of $4.5 billion in the same period last year. Shell reported $7.9 billion in charges, including $2.6 billion for Alaska and $2 billion related to the decision to cancel the Carmon Creek project in Alberta, Canada. Excluding one-time items and fluctuations in the value of inventories, the company said profit dropped to $1.8 billion, from $5.8 billion a year earlier, reflecting the plunge in oil prices.  (AP Photo/Elaine Thompson, File)

FILE - In this Thursday, May 14, 2015 file photo, the Royal Dutch Shell oil drilling rig Polar Pioneer is towed toward a dock in Elliott Bay in Seattle. Royal Dutch Shell reported a third quarter loss of $7.4 billion Thursday, Oct, 29, 2015 as it re-organized and canceled projects, including drilling in Alaska, to cope with the plunge in oil prices. The net loss compares with a profit of $4.5 billion in the same period last year. Shell reported $7.9 billion in charges, including $2.6 billion for Alaska and $2 billion related to the decision to cancel the Carmon Creek project in Alberta, Canada. Excluding one-time items and fluctuations in the value of inventories, the company said profit dropped to $1.8 billion, from $5.8 billion a year earlier, reflecting the plunge in oil prices. (AP Photo/Elaine Thompson, File)  (The Associated Press)

Royal Dutch Shell has reported a third-quarter net loss of $7.4 billion after canceling a series of long-term projects, including drilling in Alaska.

The company reported charges of $8.2 billion, including $2.6 billion related to the decision to halt Alaskan exploration activities.

Excluding those one-time items and after adjustments, the company reported that profit dropped to $1.8 billion, down from $5.8 billion a year earlier, reflecting the plunge in oil prices.

Brent crude, the benchmark for North Sea oil, averaged $50.26 a barrel in the third quarter, down 51 percent from a year earlier.

CEO Ben van Beurden says, "Shell's integrated business and our performance drive are helping to mitigate the impact of low oil prices on the bottom line in what is a difficult environment for the industry today."