Shell’s first-quarter profits in 2016 – the first since its $50 billion merger with BG Group – fell by 58% to $1.6 billion compared to $3.7 billion in the first quarter of 2015.
Organic capital investment for 2016 is now trending towards $30 billion for this year – down 36% from combined Shell-BG investment of $47bn in 2014 and a further reduction of $3bn from earlier guidance in 2016.
Ben van Beurden, Chief Executive, Shell, said: “We continue to reduce our spending levels, to capture cost opportunities and manage the financial framework in today’s lower oil price environment.
“The combination with BG is off to a strong start, as a result of detailed forward planning before the completion of the transaction. This will likely result in accelerated delivery of the synergies from the acquisition, and at a lower cost than we originally set out.
“We will continue to manage spend, through dynamic decision-making across the organisation, taking advantage of opportunities from both the deflating market and the two companies coming together.
“The completion of the BG deal has reinforced our strategy and strength against the backdrop of hugely challenging times for our industry. For Shell and our shareholders, this is a unique opportunity to reshape and simplify the company.”