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Royal Dutch Shell today published the preliminary results of the fourth quarter of 2015, and for all of the last year. The company estimates that in the fourth quarter of 2015, its earnings were between $ 1.6 billion to $ 1.9 billion, which is 42-51% less than the same period in 2014. A similar situation is expected to happen with the annual profit, foretold between $ 10.4 billion to $ 10.7 billion. This is slightly below the company's own forecasts, which are $ 10.8 billion, and more than twice lower than those which the company obtained in 2014, $ 22.6 billion. Production in the fourth quarter was 3 million barrels of oil equivalent a day, according to the results of a year - 2.9 million barrels of oil equivalent a day.
General Director of Royal Dutch Shell Ben van Beurden said he was pleased with the preliminary results, noting that the company managed to reduce costs by $ 4 billion in 2015, which is 10%. He also estimated and the spending would be cut by $ 3 billion in 2016. In addition, Mr. van Beurden noted that the company found a way to increase its competitiveness through bold, strategic decisions. Among them, Mr. van Beurden outlined the deal to buy the company's BG Group, announced in April last year. January 27, Royal Dutch Shell shareholders should vote for or against the deal. The preliminary voting results look ambiguous, given preliminary results for the year announced today.
In April last year, oil cost about $ 60 per barrel, and the amount of the deal was estimated at $ 70 billion, but now with the fall of oil to $ 28 a barrel, it dropped below $ 50 billion. Investors are now more skeptical with respect to this transaction. Yet, one of the largest investors in Royal Dutch Shell - The Norwegian sovereign fund - today issued a statement in which says that it’s going to vote in favor of the purchase.
Meanwhile, after the publication of the preliminary results of the quarter and year as a whole, shares of Royal Dutch Shell fell by 4.8%, shares of BG Group - 1.9%.
source: nytimes.com
General Director of Royal Dutch Shell Ben van Beurden said he was pleased with the preliminary results, noting that the company managed to reduce costs by $ 4 billion in 2015, which is 10%. He also estimated and the spending would be cut by $ 3 billion in 2016. In addition, Mr. van Beurden noted that the company found a way to increase its competitiveness through bold, strategic decisions. Among them, Mr. van Beurden outlined the deal to buy the company's BG Group, announced in April last year. January 27, Royal Dutch Shell shareholders should vote for or against the deal. The preliminary voting results look ambiguous, given preliminary results for the year announced today.
In April last year, oil cost about $ 60 per barrel, and the amount of the deal was estimated at $ 70 billion, but now with the fall of oil to $ 28 a barrel, it dropped below $ 50 billion. Investors are now more skeptical with respect to this transaction. Yet, one of the largest investors in Royal Dutch Shell - The Norwegian sovereign fund - today issued a statement in which says that it’s going to vote in favor of the purchase.
Meanwhile, after the publication of the preliminary results of the quarter and year as a whole, shares of Royal Dutch Shell fell by 4.8%, shares of BG Group - 1.9%.
source: nytimes.com
