Shell profits slump by more than half and planned investment for 2016 is slashed by 45%

 Ben van Beurden
Ben van Beurden

Shell profits slumped by more than half (52%) in 2015 compared to the previous year, the company announced today.

In the full year, Shell’s current cost of supplies (CCS) earnings were $10.7 billion, down from $22.6 billion in 2014.

In the final quarter of 2015, Current Cost of Supplies (CCS) earnings, excluding identified items, also slumped to $1.8 billion, down from $3.3 billion in Q4 2014.

Shell’s 2015 capital investment was $28.9 billion, down 23% from $37.3 billion in 2014.

And its planned 2016 capital investment for the new combined Shell-BG is expected to be $33 billion down 45% from 2013 peak combined spending.

Ben van Beurden, Shell Chief Executive, said: “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. We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices

“We are making substantial changes in the company… as we refocus Shell, and respond to lower oil prices. 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.”

Earlier this week, BP announced a profits slump of 51% to $5.9bn and a further 3,000 job cuts.

 

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