* Shell boosts third quarter dividend by 4%
* Q3 profits easily beat forecasts
* Shell says to boost dividend annually
(Adds details)
By Ron Bousso and Shadia Nasralla
LONDON, Oct 29 (Reuters) - Royal Dutch Shell on
Thursday increased its dividend after easily beating
third-quarter profit forecasts even as the energy company warned
of "significant uncertainty" because of the pandemic.
The Anglo-Dutch company said it would boost its dividend on
an annual basis in a sign of renewed confidence after it cut its
dividend in April for the first time since the 1940s in response
to the slump in oil prices as COVID-19 shrank energy demand.
Shell is planning a major restructuring as part of a plan to
reduce greenhouse gas emissions to net zero by 2050 and "a
complete overhaul" over the next 30
years.
Shell's adjusted earnings in the third quarter fell 80% to
$955 million but easily beat company-provided average analysts
forecasts of a $146 million profit.
The results were driven by a record profit from Shell's
marketing division, which includes the world's biggest retail
network. Earnings in the segment were up 10% on the year at $1.6
billion for the quarter.
Shell, the world's biggest Liquefied Natural Gas trader,
wrote down the value of its LNG portfolio by just under $1
billion in the quarter, focusing on its flagship Prelude project
in Australia.
"As a result of COVID-19, there continues to be significant
uncertainty in the macroeconomic conditions with an expected
negative impact on demand for oil, gas and related products,"
Shell said in a statement.
Shell's shares have dropped by more than 60% so far this
year, more than any other major oil company, as investors fret
over the impact of the pandemic on energy demand and the
company's ability to cover costs even the April dividend cut.
Concerns about the world's shift to low-carbon energy have
also weighed on the sector.
Shell said on Thursday it would reduce the number of its oil
refineries from 14 sites to six "energy and chemical parks".
(Reporting by Ron Bousso; editing by David Goodman, Jason Neely
and Barbara Lewis)