Royal Dutch Shell Cuts Spending after Profits Fall

Royal Dutch Shell Cuts Spending after Profits Fall

Royal Dutch Shell will cut its spending by another 10% this year as it warned lower oil prices were continuing to affect its business. The company said it would reduce investment to $30b from a planned $33b, after coming under pressure from shareholders to cut costs, BBC reported.

“We continue to reduce our spending levels, to capture cost opportunities and manage the financial framework in today’s lower oil price environment,” Royal Dutch Shell Chief Executive Officer, Ben van Beurden, said in the statement.

The Anglo-Dutch energy group announced an 89% drop in net profit for the first quarter, blamed on slumping oil prices.  According to Economic Times, profit after tax stood at $484m in the January-March period, down from $4.43b in the first quarter of 2015. However, stripping out exceptional costs and changes to the value of Shell’s oil stockpiles, profit retreated 58% to $1.55b.

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