Shell considers a prolonged period of decline in the energy sector due to the sustained low oil prices. Shell therefore going for billions of euros to save costs.
Savings
Shell foresees for this year a cost of four billion dollars. Investments with $ 7 billion be reduced as well. Of the 90,000 jobs are deleted from the years 6500. Shell will in 2016 further reducing costs.
Shell is investing this year for $ 30 billion, 20% less compared to the level of investment in 2014 and a decrease of 35% compared to 2013.
Dividend
The Dutch-British energy company announces to stick to his promise dividend of $ 1.88 per share in 2015 and at least $ 1.88 per share in 2016. The share repurchase program of company shares worth 25 billion dollars in the period 2017-2020 is maintained. Shell has never reduced the dividend in its history.
BG
Pro forma capital expenditures for Shell and BG amounts in 2016 expected to be approximately $ 35 billion. The company also announced the acquisition of BG on track, adding that the synergies from the acquisition at least $ 2.5 billion annually from 2018
SEE
The group also reports that both the projects under construction as the investment continues to assess the medium term on the basis of efficiency, affordability and growth potential the medium term. At the same time, Shell continues to invest in new projects.
Shell expects that the sale of assets in 2014 and 2015 in total will amount to $ 20 billion.
Lower sales, reduced production
Shell today reported on the second quarter, a 37% lower adjusted earnings (CCS earnings) of $ 3.8 billion, up from $ 6.1 billion a year earlier. Net profit decreased by 25% to nearly $ 4 billion. Revenue came in at $ 72.4 billion, 35% lower than the 111.2 billion dollars in the second quarter of 2014. The total oil and gas production fell during the quarter compared to the same period a year earlier by 11% to 2.731 million barrels of oil equivalent per day.
RTL Z / Dow Jones
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