Shell screw investment over the next three years by more than 15 billion dollars (13.3 billion euros) back. That made the Anglo-Dutch oil company announced on Thursday at the presentation of the fourth-quarter and full year results.
The lower investments related to the sharp fall in oil prices. According to CEO Ben van Beurden Shell has options to reduce spending even further if necessary. “But we do not overreact to the current low oil prices and keep our best options on the table,” he said.
The price of crude oil has more than halved in six months. Many oil companies see themselves thereby obliged to adjust their investment plans because it takes much longer at current prices for an investment is recouped. At Shell find that some forty projects, Van Beurden told Bloomberg TV.
In 2014, Shell was already pieces cautious with spending on the extraction of difficult to produce oil and gas resources. The focus was mainly on strengthening the balance sheet. This was done for $ 15 billion in assets sold. Shell can therefore
Shell looks ten years ahead
The CEO assumes that oil prices eventually will recover. The expected relationship between supply and demand in the longer term, he says, the past six months hardly changed. Van Beurden emphasized that Shell investments decade ahead looks.
Shell booked in the fourth quarter net income of $ 773 million, more than a billion less than a year earlier. The profit figure that is a criterion for financial markets, on the basis of current inventory costs (CCS) and excluding non-recurring costs, it increased from 2.9 to 3.3 billion dollars. However, the latter figure was well below analysts’ expectations.
The lower oil prices took a big bite out of the revenues from Shell. Who fell in the fourth quarter by 15.5 percent to $ 94.2 billion.
The Shell shares fell more than 3 percent on Thursday morning at the fair in Amsterdam.
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