Company blames oil price slump
Shell to axe 2,200 more jobs and sell assets
Royal Dutch Shell has unveiled another round of job cuts and asset sales following its acquisition of BG Group.
It was not clear where the axe will fall but the company said it was withdrawing from 10 countries and will focus activities on 13. The company says it is looking to offload $30bn of assets.
Critics have accused Shell of overpaying when it acquired BG in February for £35bn. But a defiant chief executive Ben van Beurden said: “We actually see that it’s worth more than we thought it was.”
In a statement on its mid-term strategy, Mr van Beurden said: “By capping our capital spending in the period to 2020, investing in compelling projects, driving down costs and selling non-core positions, we can reshape Shell into a more focussed and more resilient company, with better returns and growing free cash flow per share.”
The statement will raise concerns that it may reduce its commitment to mature regions such as the North Sea.
The company has raised its forecast savings from its merger with BG from $3.5bn to $4.5bn over two years.
It has blamed the slump in the oil price for a fall in first quarter profit from £4.8bn to $800m.
Mr van Beurden said he hoped the cuts would boost the company’s share price