Royal Dutch-Shell Net Falls 55% in Third Quarter

Royal Dutch-Shell reported that its profit tumbled 55.1% in the third quarter and said it may be difficult to avoid downward pressures on oil prices in early 1986.

Royal Dutch, the world’s second-largest oil company after Exxon, attributed its declining profits to expenses related to its closing of a refinery, reductions in its marine fleet, a write-down of some U.S. coal assets and special incentive payments to Shell Oil Co. employees. Shell, based in Houston, is wholly owned by Royal Dutch, which has headquarters in both Britain and the Netherlands.

Profit for the third quarter fell to $606 million on revenue of $23.39 billion from profit of $1.27 billion on revenue of $23.94 billion in 1984.

In its report, Royal Dutch noted a recent rebound in crude oil prices, which it attributed to seasonally low inventories in the hands of oil companies, coupled with a reduction in oil shipments to the West by the Soviet Union, the world’s largest oil producer.