PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas - ceased activities in 2018
Shell has had operations in Algeria since 2005. In 2015, we liquidated Shell Marketing Algerie SPA but remained active in upstream exploration until 2018.
Country Financial Analysis
In 2018, Shell Exploration New Ventures One GmbH (SENVO), incorporated in Germany with an Algerian branch, ceased exploration activities in Algeria after making no commercial discoveries. The $1.2 million in profit before tax for 2019 is due to exchange rate gains after a capital repayment of €14 million was made. While the original capital amount was booked at historical dollar values, the repayment used current values. The difference in the exchange rate values resulted in the profit. However, losses from previous years were partially offset against this profit and this led to an overall non-taxable profit position.
Algeria’s statutory corporate income tax rate is 19-26%, depending on the type of activity. The tax rate for oil and gas activities depends on the tax treatments applied and concession terms. Shell has incurred losses from exploration activities in recent years and these losses were carried forward. The losses exceeded any profit made in 2019 and therefore no corporate income tax was due.