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.
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