Aussie B.C. Reports Shell Profit Drops 87 Percent

6 02 2016

Royal Dutch Shell confirms 10,000 job cuts as profit plunges 87 per cent on slumping oil prices

Updated Thu at 9:08am

Royal Dutch Shell has confirmed it will cut 10,000 jobs worldwide after an 87 per cent plunge in annual net profits on slumping oil prices.

The Anglo-Dutch group reported profit after tax of $US1.94 billion ($2.7 billion) for 2015, compared with almost $US15 billion ($20.9 billion) the previous year, Shell said in a statement.

It is the company’s lowest annual profit in at least 13 years.

The company’s chief executive, Ben van Beurden, flagged the cuts last month as part of a takeover of its smaller rival, BG Group.

“As we have previously indicated, [the changes] will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies,” he said in a statement on Thursday.

Shareholders of both Shell and BG have voted in favour of the merger, which Mr van Beurden said he expected to completed in a “matter of weeks”.

Mr van Beurden said Shell would continue to manage costs amid falling prices for oil.

“We are making substantial changes in the company … and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices,” the statement said.

“In 2015, we significantly curtailed spending by reducing the number of new investment decisions and designing lower-cost development solutions.”

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