Shell shares up as it ratifies 10,000 work divides and descending net profit
Royal Dutch Shell shares rose after it confirmed it would cut 10,000 jobs and a sharp fall in annual profits. Shell prolonged gains to 7% as it said it fabricated $1.8bn (£1.23bn) for the fourth quarter, compared with a $4.2bn profit for the same period the year before.
Total-year profits have seen their steepest drop in 13 years, from $19bn in 2014 to $3.8bn last year. Oil prices have fallen steadily, from more than $100 a barrel 18 months ago to around $30 a bbl instantly. Nevertheless, Shell has maintained its dividend payout to shareholders, a go that relieved investors.
Oil companies and their businesspeople get been cutting back hard on investment and jobs as the low price eats into profits and makes investment less worthwhile. Shell’s arch-rival, BP, announced a profits slump of 51% to $5.9bn for 2015 and a further 3,000 work cuts earlier this week.