Shell expects huge profits decline on oil price plunge

20th January 2016, Comments 0 comments

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.

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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© 2016 AFP

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