Arab Today, arab today shell reports profits plunge on oil price slump
Last Updated : GMT 01:15:11
Arab Today, arab today
Arab Today, arab today

Shell reports profits plunge on oil price slump

Arab Today, arab today

Arab Today, arab today Shell reports profits plunge on oil price slump

Royal Dutch Shell
London - AFP

Royal Dutch Shell on Thursday announced an 87-percent plunge in annual net profits on slumping oil prices.

The Anglo-Dutch group reported profit after tax of $1.94 billion (1.75 billion euros) for 2015, compared with almost $15 billion the previous year, Shell said in a statement.

The slump had been expected after Shell announced two weeks ago that it foresaw annual profit of between $1.6 billion and $2.0 billion.

Thursday's update comes as Shell is slashing thousands of jobs, selling assets worth billions of dollars and exiting projects as oil prices tumble on world markets.

The company is meanwhile close to completing a mega-takeover of British rival BG Group.

"We are making substantial changes in the company, reorganising... and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices," Royal Dutch Shell chief executive Ben van Beurden said in Thursday's earnings statement. 

"As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies."

Shell added that profit on a current cost-of-supplies (CCS) basis -- which strips out changes to the value of its oil and gas inventories -- slumped by 53 percent in 2015 to around $10.7 billion.

The company is very near to finalising a £47-billion ($68-billion, 62 billion-euros) takeover of smaller British rival BG Group after the pair won shareholder backing and cleared regulatory hurdles.

The deal is intended at strengthening Shell's position in the liquefied natural gas (LNG) market.

"The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company, and improving shareholder returns," van Beurden said Thursday, echoing recent comments.

World oil prices have shed about three-quarters of their value in around 18 months, mainly owing to a global supply glut but also because of weak demand growth and a strong dollar.

The crash in oil prices has been felt sector wide, with Norwegian oil giant Statoil on Thursday saying it was slashing investments and stepping up a cost-cutting programme after recording a huge annual loss of its own for 2015.

Oil companies have been downsizing staff and mothballing drilling rigs in response to a drop in oil prices from more than $100 a barrel in July 2014 to about $30 currently.

On Tuesday, US energy giant ExxonMobil announced plans to slash its capital budget and suspend a share repurchase programme.

The same day, British group BP posted its biggest loss in at least 20 years and announced plans to axe 3,000 jobs.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today shell reports profits plunge on oil price slump Arab Today, arab today shell reports profits plunge on oil price slump

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday