Shell profits fall 80%

Shell profits fall 80%

Shell has seen its profits fall by 80% as a result of the slump in oil prices. However, the company still made £2.6bn in 2015.

Shell is pressing ahead with its merger with exploration group BG - but said 10,000 jobs would go across the two firms.

Shell insisted its $49bn takeover of BG Group heralds the start of a “new chapter”.

The blue chip giant saw full-year earnings tumble to $3.8bn in 2015 from $19bn in 2014 after it was hammered by the recent collapse in oil prices.

On an underlying basis, full-year earnings fell 53% to $10.7bn.

Shell, which had braced the markets for a sharp fall in figures last month, said it had been slashing costs and leading an overhaul to offset the oil price rout, but added it was ready to take further action if needed.

Chief executive Ben van Beurden 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.”

The group stripped out $4bn from the business - around 10% – in 2015 and plans to cut a further $3bn this year.

It has also previously confirmed more than 10,000 jobs will be axed as part of the BG tie-up and it is planning to offload $30bn.

Mr van Beurden said: “Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.”

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