DAILY MAIL
By Daily Mail Reporter
Last updated at 10:12 AM on 29th October 2009
Oil giant Royal Dutch Shell today announced it was cutting 5,000 jobs as weaker oil prices and the ailing global economy saw profits plunge.
The Anglo-Dutch company reported a decrease in profits of 73 per cent to $2.99billion (£1.83billion) between July and September.
Chief executive Peter Voser said that despite some positive signs the outlook for the industry remained tenuous.
We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery, he said.
Continuing its previously announced restructuring programme – which saw senior management numbers cut 20% – Shell added that a further 5,000 staff would be leaving the company by the end of the year. The cut represents around 5% of the firms global workforce of just over 100,000.
The plan has already slashed operating costs by $1billion (£686million) in the first nine months of the year.
Mr Voser said: ‘Our strategy remains on track, although the near-term industry outlook remains challenging.
Despite the fall in profits, Shell’s results were ahead of market expectations. However this was overshadowed by results reported earlier in the week by rival BP which outstripped analyst forecasts by 50 per cent on Tuesday.
BP shares rocketed 5 per cent after the company reported cost savings of $3billion, exceeding expectations, and a rise in production of 7 per cent compared to the previous year.
Profits for the quarter halved to $4.98billion. Shell said oil and gas production for the period was unchanged on a year earlier, although the figure was higher on an underlying basis. Following the update, the company’s shares slipped 3 per cent in early trading.
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