Posts under ‘International Herald Tribune’
Shell gets tough on costs as oil prices bite
Royal Dutch Shell has intensified its cost-cutting efforts in response to the collapse in oil prices and also plans to step up efforts to improve what it said was a “mixed” safety record.
Shell’s head of Exploration and Production Malcolm Brinded told employees in an email seen by Reuters that staff had to make “tough choices.”
“We simply need much higher sustainable savings this year and I ask for real actions from all of you …. Shed contractor staff, challenge requirements, eliminate consultancy work, reduce travel massively, cut overheads everywhere,” he said.
The Associated Press
Published: January 29, 2009
AMSTERDAM, Netherlands: Royal Dutch Shell PLC, Europe’s largest oil company, has reported a $2.81 billion net loss for the fourth quarter as the price of oil fell sharply and it wrote down the value of its inventory.
The company had $8.47 billion in net profit in the same period a year earlier.
The company said Thursday sales fell 24 percent to $81.1 billion. Crude production was down less than one percent to 3.42 million barrels per day, but Shell’s selling price fell 29 percent to $58.40 as the global economic slowdown hit demand.