Profits at oil giant Shell have fallen by 32% after it was hit by the worsening security situation in Nigeria.
Total said yesterday that its production had also been hit by the troubles – and ConocoPhillips said last night that it was leaving the violence-hit African state for good.
Analysts said yesterday that a number of firms were now looking to quit the country.
But one man held captive by militants in the Niger Delta said companies need to win the “hearts and minds” of Nigerians if they wish to stay and reap the benefits of its vast oil reserves.
The ongoing challenges in Nigeria, where oil theft and disruption to gas supplies are causing wide-spread environmental damage, impacted on Shell’s production volumes in the last quarter.
It also blamed rising costs as it posted underlying profits of £2.8billion for the period to September 30.
Chief executive Peter Voser, who is leaving the company at the end of this year, said: “We are facing headwinds from weak industry refining margins, and the security situation in Nigeria, which continue to erode the near term outlook.”
It lost around 65,000 barrels of oil per day to oil thieves and a blockade of liquefied natural gas from the country.
However he said the company’s flow of projects for 2014 and beyond was strong, following the opening of a series of new oil and gas fields in the last few months, including in Iraq.
He added: “Shell’s sustained investment in new growth projects will drive our financial performance.”
The biggest factor in the third-quarter decline was the company’s downstream operation, where profits fell 49% to £556.2million as a result of weaker refining conditions caused by industry overcapacity and weak demand.
Shell said it had distributed £6.9billion of dividends in the last 12 months, while it is on track to make up to £3.1billion of share buy backs.
Mr Voser added: “Our cash flow pays for Shell’s dividends and investment in new projects to ensure affordable and reliable energy supplies for our customers, and to add value for our shareholders.”
Total said it was focusing on long-term growth after seeing third-quarter profits drop 19%.
The company posted net profits of £2.28billion for the last three months, down 19% from a year earlier , with profits for the year to date down 10% to £7.02billion.
Production was up slightly to 2,299 thousands barrels of oil equivalent per day for the quarter, boosted by the restart of production from the Elgin and Franklin field in the North Sea.
Meanwhile, ConocoPhillips said yesterday that it was hoping to raise more than £5.5billion by selling off assets in Nigeria, Kazakhstan and Algeria.
The American firm – which reported a 39% rise in third quarter profits yesterday – said it was looking to cut its exposure to political risk and conflict.