Shell profits plummet 87% as oil price collapse hits energy sector hard

Well oil be damned

Shell’s profits have crumbled by 87% to $1.9bn as the collapse in oil prices continues to wreak havoc with some of the world’s largest energy firms.

The global collapse in oil prices has seen a 70% drop in the price of a barrel of Brent crude, which has been as low as just $32 in recent days.

The effect has already taken a major toll on oil companies, with BP reporting the biggest annual loss in its history on Tuesday.

Meanwhile, Shell is hoping to combat the woeful state of the market with a £35m bid for rival firm BG, in a move that has already won the approval of Shell’s shareholders.

Shell is also planning to cut 10,000 jobs following the tie up with BG.

Shell chief executive Ben van Beurden said he would act to make “significant changes” to deal with the collapse in oil prices.

He said: “The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company, and improving shareholder returns.

“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.”

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