Shell has blamed lower oil and gas prices and "weak industry conditions" in the processing and distributional of oil, as well as higher exploration expenses and lower volumes.
The group also said it expects hefty writedowns of 700 million dollars (£429 million) for the fourth quarter and 2.7 billion dollars (£1.7 billion) for the full year relating to its its upstream business.
These are expected to hit results even further, sending fourth quarter earnings 70% lower to around 2.2 billion dollars (£1.3 billion) and 2013 earnings 38% down to about 16.8 billion dollars (£10.3 billion).
The Office of Fair Trading (OFT) has defended its investigation in to petrol pricing saying that it lacked information:
The Office of Fair Trading carried out a call for information on UK road fuels, the findings of which were published in January of this year.
As part of this call for information, the OFT asked for evidence on whether speculation or manipulation of oil spot and futures markets or inaccurate oil or wholesale road fuel price reporting could be leading to higher pump prices.
The OFT stated these issues could potentially raise serious concerns but no credible evidence was submitted to the OFT in response to the call for information.
The European Commission has confirmed on May 14, commission officials carried out several unannounced inspections in a number of countries at the premises of companies active in and providing services to the crude oil, refined oil products and biofuels sectors.
The investigation is being conducted by and is a matter for the European Commission, and the OFT is currently assisting the commission with its inspections in the UK.
– Office of Fair Trading statement
In January the OFT found that price rises were driven by tax rises and the hike in the oil price, and said it found "very limited evidence" that retailers were not passing on drops in the wholesale price to drivers quickly enough.
A Conservative MP blasted an Office of Fair Trading (OFT) inquiry into petrol prices as "limp-wristed and lettuce-like" in the wake of price-fixing allegations.
Harlow MP Robert Halfon, who has campaigned for cuts to duty and greater transparency in the market, said despite the Commons unanimously calling for a thorough probe into petrol pricing, the regulator failed to spot any of the allegations currently under review.
Mr Halfon said: "Do you not agree that what happened was the OFT carried out a limp-wristed, lettuce-like inquiry when they should have done a full 18-month inquiry into what has been going on?"
Energy Secretary Ed Davey defended the OFT as an "independent body, a strong body", which has powers to determine its own investigations.
Mr Davey made a statement updating MPs on the launch of a European Commission investigation into oil companies BP, Royal Dutch Shell and Norwegian company Statoil.