LONDON—Royal Dutch Shell PLC on Thursday reported a sharp drop in second-quarter profit compared with a year earlier as lower oil and gas prices weighed on earnings.

The quarter was the first full one that included BG Group PLC, which Shell bought in a roughly $50 billion acquisition that completed in February.

Shell said its quarterly profit on a current cost-of-supplies basis—a measure similar to the net income that U.S. oil companies report—was $239 million, down 93% from $3.36 billion a year earlier. Its adjusted earnings, stripping out one-off items such as proceeds from divestments, fell to $1.05 billion from $3.76 billion a year earlier.

A Wall Street Journal poll of seven analysts forecast adjusted earnings of $2.27 billion for the quarter.

"Downstream and integrated gas businesses contributed strongly to the results, alongside Shell's self-help program. However, lower oil prices continue to be a significant challenge across the business, particularly in the upstream," said Shell Chief Executive Ben van Beurden.

(END) Dow Jones Newswires

July 28, 2016 02:45 ET (06:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Citigroup (NYSE:C)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Citigroup Charts.
Citigroup (NYSE:C)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Citigroup Charts.