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Shell expects huge profits decline on oil price plunge

Shell is slashing thousands of jobs, selling assets worth billions and exiting projects as oil prices plunge

Afp January 20, 2016 Less than a minute read

An oil pumpjack works on January 19, 2016 in Sweetwater, Texas. Global oil prices continue their downward fall with U.S. oil dropping towards $27 a barrel, its lowest since 2003, on worries about global oversupply. PHOTO: AFP

LONDON: Royal Dutch Shell on Wednesday said it expected a sharp decline in full-year net profits, as plunging oil prices slash the earnings of leading energy companies.

The Anglo Dutch group forecast profit after tax of between $1.6 billion and $2.0 billion (1.5 billion euros and 1.8 billion euros) during 2015.

This compares with net profit of almost $15.0 billion in 2014.

Shell is slashing thousands of jobs, selling assets worth billions of dollars and exiting projects as oil prices continue to plunge on world markets because of a supply glut.

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The company is meanwhile close to completing a mega-takeover of British rival BG Group.

"The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns," the group said in a statement ahead of its official full-year earnings announcement due February 4.