Economy Downturn: Shell to Sack 10000 Workers

Royal Dutch Shell has announced a 44 percent drop in total earnings for the last quarter of 2015 compared to 2014.
According to figures released by the oil company, fourth quarter 2015 CCS earnings were $1.8 billion compared with $3.3 billion for the fourth quarter of 2014, a decrease of 44%.
It noted the fourth quarter 2015 earnings were positively impacted by non-cash net gains of some $0.3 billion related to currency exchange rate effects on deferred tax positions.
Full year 2015 CCS earnings were also negative dropping to $10.7 billion compared with $22.6 billion in 2014.
Speaking on the development, Chief Executive Officer, Royal Dutch Shell, Mr. Ben van Beurden said the company will be laying off 10,000 staff as part of changes in response to lower oil sale and suspend investment in Bona Deep Water, Nigeria and Canada.
“We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices. As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies”, he said.
He explained that in 2015, the company significantly curtailed spending by reducing the number of new investment decisions and designing lower-cost development solutions.
“For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria. Operating costs and capital investment have been reduced by a total of $12.5 billion as compared to 2014, and we expect further reductions in 2016, he announced.
He said that as a result of actions in 2015, the company retained a strong balance sheet position, with 14% gearing.
“Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that. Shell’s dividends for 2015 were $1.88 per share, and are expected to be at least $1.88 per share in 2016, as previously announced’’, he said.