Shell predicts 'uncertain' year ahead
Shell predicts 'uncertain' year ahead
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By Matt Hallam. |  |
Thursday, 04, Feb 2010 10:54
By Sarah Garrod.
Royal Dutch Shell has today announced its profits were hit by weak demand in 2009 and said it would be axing 1,000 jobs in 2010.
In the three months to December, net profit slumped by 75 per cent, from $4.8 billion (£3 billion) in 2008, to $1.2 billion (£755 million) in 2009.
Shell's chief executive said following the result that the "outlook for 2010 is uncertain" and confirmed the company would be cutting 1,000 jobs as part of its costs cutting measures.
For the full year in 2009, adjusted net profit was $9.8 billion (£6.2 billion), down 69 per cent on a year earlier.
On the FTSE 100 this morning, energy stocks fell on the back of the disappointing Shell results.
Chief executive officer Peter Voser said: "Our fourth quarter 2009 results were impacted by the weak global economy. Oil prices have increased compared to a year ago, but gas prices and refining margins have declined sharply, because of weaker demand and high industry inventory levels. We are not assuming that there will be a quick recovery, and the outlook for 2010 is uncertain.
"As a result of our actions in 2009, some 5,000 employees will leave Shell, a reduction of ten per cent in the impacted areas.
"Downstream is facing some tough times. There is a significant overhang of industry refining capacity, exacerbated by the economic downturn.
"Cost focus is now embedded in our day-to-day operations. For 2010, we are targeting a further underlying cost reduction of at least $1 billion, and a reduction of some 1,000 employees."