* Q4 adjusted CCS earnings $2.9 bln, below $4 bln forecast
* Warning first announcement by new CEO
* Shares down 2 percent
By Kate Holton
LONDON, Jan 17 (Reuters) - Royal Dutch Shell issueda "significant" profit warning on Friday, detailingacross-the-board problems and the extent of the challengesfacing the oil major's new boss Ben van Beurden, who took overtwo weeks ago.
The warning comes nearly 10 years to the day after Shell,the western world's No. 3 oil company, revealed the so-calledreserves accounting scandal, when the group dramaticallydowngraded its reserves estimates.
It also follows a similar warning from Chevron Corp,the second-largest U.S. oil company, last week and reflects howthe industry is having to grapple with replacing reserves, loweroil prices and the need to control costs.
"Our 2013 performance was not what I expect," van Beurdensaid, announcing a cut in forecasts to fourth-quarter earningsexcluding identified items on a current cost of supplies (CCS)to $2.9 billion, from market expectations of about $4 billion.
The last time the Anglo-Dutch firm reported an adjustedearnings figure as low as $2.9 billion was in the fourth quarterof 2009. Since then the main operating metric has averaged $5.6billion per quarter.
Analysts said Shell appeared to have suffered a perfectstorm in the last three months, due to weak refining profitmargins, higher production costs, output stoppages in Nigeriaand a weakening of the Australian dollar.
However they noted that the detailed warning would alsoenable the new CEO, who has been at Shell since 1983, to use theresults day on Jan. 30 and a Management Day in March to set outhis new strategy.
"This should bring to an end what has proved to be somethingof an "annus horribilis" for Shell which has seen a keyproduction target missed and weaker than anticipatedprofitability in North America," Barclays said in a note.
Shell, which dates its history back to 1833, also missedforecasts for its third-quarter trading in October.
One British-based shareholder who asked not to be named saidno one was that surprised, even though the number was bad. Hesaid it would increase pressure on the new chief executive tokeep a tighter control on costs.
"There's quite a bit of expectation building for when theyhave their full-year results and their management day ... tochart a course which leads to more free cash being generated andultimately better growth in dividends for shareholders.
"This warning is a reminder that there are some bigstructural problems."
SHELL SHOCK
Shares in the group fell more than 4 percent at the open butat 1115 GMT were down only 2 percent. Shares in rival BP,No. 5 among investor-controlled oil and gas groups worldwide,were down 0.4 percent.
Shell's stock, up 1 percent over the last twelve months, haslagged Britain's blue chip index, which is up 12 percentover the period, and also its nearest rival BP, up 7 percent.
"Shell's profit warning is a confirmation of the impact ofthe downward trend in oil prices we've seen," said CarstenFritsch at Commerzbank. "In particular, the refined productmarkets in Europe have been very weak."
International oil prices have averaged about $110 a barrelfor the past three years. Booming shale oil production in theUnited States has helped lower prices there, however, anddelivered a competitive advantage to many U.S. refineries.
The United States has also become a major exporter ofgasoline and diesel, further hitting profit margins at refinersin Europe and Asia. While Shell has a number of refineries inNorth America, about two-thirds of its refining operations arein Europe and the Asia-Pacific.
The group's weak performance was also due in part to outagesin its liquefied natural gas (LNG) sector.
"With nearly a fifth of its LNG portfolio down formaintenance, the final quarter of 2013 was never likely to be agood quarter for Royal Dutch Shell," said Barclay's, but itadded that the company remained its 'top pick for 2014' as itstill had a strong free cash flow position.
Shell is the world's largest LNG shipping operator, managingand operating 50 carriers, and owning production and importassets or projects in Australia, Brunei, Malaysia, Nigeria,Oman, Qatar, Russia, and Mexico.
It became a leader in liquefied natural gas under vanBeurden's predecessor Peter Voser, who rebuilt the oil companyfollowing the reserves accounting scandal.
TIGHTER CONTROL
Voser, who became finance director during the 2004 reservescrisis and CEO in 2009, believed fervently that an oil majorneeded to continue to invest throughout an economic cycle,rejecting calls from investors and analysts to cut back.
Since van Beurden started working with Voser in Q4 howeverthe firm has cancelled plans to build a gas-to-liquids plant inthe United States, raising investor hopes of tighter spending.
Van Beurden appeared to confirm that approach on Friday.
"Our focus will be on improving Shell's financial results,achieving better capital efficiency and on continuing tostrengthen our operational performance and project delivery," hesaid.
Van Beurden took the top job with little board-levelexperience but broad company exposure and first-hand knowledgeof the gas technology on which it has bet its future. He was thehead of refining when promoted to the top job.
