Shell predicts 'uncertain' year ahead
Shell predicts 'uncertain' year ahead
Friday 5th February 2010
Royal Dutch Shell has today announced its profits were hit by weak demand in 2009 and said it would be axing 1,000 jobs in 2010.In the three months to December, net profit slumped by 75 per cent, from $4.8 billion (£3 billion) in 2008, to $1.2 billion (£755 million) in 2009.
Shell's chief executive said following the result that the "outlook for 2010 is uncertain" and confirmed the company would be cutting 1,000 jobs as part of its costs cutting measures.
For the full year in 2009, adjusted net profit was $9.8 billion (£6.2 billion), down 69 per cent on a year earlier.
On the FTSE 100 this morning, energy stocks fell on the back of the disappointing Shell results.
Chief executive officer Peter Voser said: "Our fourth quarter 2009 results were impacted by the weak global economy. Oil prices have increased compared to a year ago, but gas prices and refining margins have declined sharply, because of weaker demand and high industry inventory levels. We are not assuming that there will be a quick recovery, and the outlook for 2010 is uncertain.
"As a result of our actions in 2009, some 5,000 employees will leave Shell, a reduction of ten per cent in the impacted areas.
"Downstream is facing some tough times. There is a significant overhang of industry refining capacity, exacerbated by the economic downturn.
"Cost focus is now embedded in our day-to-day operations. For 2010, we are targeting a further underlying cost reduction of at least $1 billion, and a reduction of some 1,000 employees."
Related News
British Gas slashes prices by an average 7% - 05/02/10
The largest energy supplier to homes in the UK, British Gas, has today announced it will be cutting prices to the average household by seven per cent
The largest energy supplier to homes in the UK, British Gas, has today announced it will be cutting prices to the average household by seven per cent
Miners send FTSE 100 to three-month low - 04/02/10
Significant drops in the mining sector caused the FTSE 100 to plunge to a three-month low on Thursday
Significant drops in the mining sector caused the FTSE 100 to plunge to a three-month low on Thursday
China hits back at US currency accusations - 04/02/10
China has hit back in its ongoing spat with the US by dismissing suggestions made by Barack Obama that it was artificially depressing its currency to gain a trade advantage
China has hit back in its ongoing spat with the US by dismissing suggestions made by Barack Obama that it was artificially depressing its currency to gain a trade advantage
Civil servant strike ballot gets underway - 04/02/10
A national strike ballot of civil servants will begin today over a dispute about changes to a national compensation scheme
A national strike ballot of civil servants will begin today over a dispute about changes to a national compensation scheme
News Article Search
Quick Apply
News Archive