Shell says it's not going to make quick decisions on spending cuts
Royal Dutch Shell (RDS.A, RDS.B) management insists it will not act hastily in pulling back on investments amid falling crude oil prices, according to remarks made in today's earnings conference call.
Shell CFO Simon Henry says Brent crude oil prices were ~$8 lower in Q3 than in the prior-year quarter - which squeezed revenues 7.4% lower Y/Y to $107.85B - and every $10 decrease in Brent oil prices would result in a $3.2B decrease in annual earnings.
Shell produced 2.79M boe/day in Q3, down 4.8% Y/Y, but Henry says it is achieving better profit margins from that production than in the past (Q3 earnings).
Recent exits from the Pinedale and Haynesville dry gas plays in the U.S. mark the end of the selloff from Shell's North American shale portfolio; the company will have exited assets that amount to the equivalent of 11% of its 2013 oil and gas production this year, Henry says.
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