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Shell Cuts 2,200 More Jobs to Withstand Lower-For-Longer Oil

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Screen Shot 2016-05-21 at 10.18.28By Rakteem KatakeyMay 25, 2016 — 11:19 AM BST

Royal Dutch Shell Plc will cut 2,200 more jobs, taking the total tally of losses to 12,500 from 2015 to 2016 as the world’s second-biggest oil company continues to adjust to the slump in prices. 

At least 5,000 jobs will be cut this year, the company said in an e-mailed statement. These reductions are in response to oil prices staying “lower for longer,” and as a result of the acquisition of BG Group Plc earlier this year, said Paul Goodfellow, Shell’s vice president for the U.K. and Ireland. 

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Shell boss Ben Van Beurden spared shareholder pay revolt

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Jillian Ambrose24 MAY 2016 • 3:17PM

Shell shareholders have approved plans to pay boss Ben Van Beurden £4.3m despite calls from top proxy advisors to vote against his bonus ahead of the oil major’s AGM.

Investors voted 85.83pc in favour of the payout at the meeting in The Hague today.

Mr Van Beurden’s pay packet includes a salary of £1.4m, a bonus of £3.5m, and a pension of £441,000 for 2015, despite Shell reporting its steepest losses in 13 years and a planned job cull of 10,000. He has also received shares worth £9.7m, which vest in three years if he meets key performance targets.

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Shell faces rising investor discontent over executive pay

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Screen Shot 2016-05-12 at 11.17.55By REUTERSPUBLISHED: 16:01, 24 May 2016

By Ron Bousso

THE HAGUE, May 24 (Reuters) – Investor discontent with Royal Dutch Shell over multi-million euro pay packages for its top executives rose sharply at this year’s annual shareholder meeting on Tuesday.

Although Shell’s shareholders approved the oil and gas group’s remuneration report, including chief executive Ben van Beurden’s 5.14 million euros ($5.74 million) package, 14.17 percent of investors opposed it, up from 3.84 percent last year.

Royal London Asset Management, which holds Shell shares worth nearly 1 billion pounds, said it was “disappointed” that van Beurden received very close to the maximum possible bonus in a year when the firm’s overall financial performance was weak.

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Shell shareholders vote in favour of CEO’s $5.8-million pay

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THE HAGUE — Reuters: Tuesday, May 24, 2016: 7:40AM EDT

Royal Dutch Shell shareholders on Tuesday voted overwhelmingly in favour of Chief Executive Officer Ben van Beurden’s 2015 remuneration of €5.14-million ($5.8-million U.S.).

His total package, including pension and tax equalization, was €5.58-million, down from 24.2 million the previous year, mainly due to a significant fall in pension which had been boosted in 2014 by van Beurden’s promotion to chief executive.

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Shell shareholders to vote on pay

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Screen Shot 2016-05-12 at 11.17.55BOSSES at Royal Dutch Shell will face shareholders at the group’s annual general meeting tomorrow amid concern over the chief executive’s “unacceptable” £4million pay deal.

Investors have been urged to vote against the firm’s remuneration report in protest at Ben van Beurden’s pay for 2015, even though it marked a significant reduction from the £18.6million he was paid in 2014 in the wake of plunging profits.

Shell’s latest annual report revealed boss Mr van Beurden’s total pay for last year was £4.3million – a 77 per cent fall on 2014 after the tumbling cost of crude took its toll on the group.

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Green really is the new black as Big Oil gets a taste for renewables

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Terry MacalisterSaturday 21 May 2016

The world’s largest oil companies have in recent weeks announced a series of “green” investments – in wind farms, electric battery storage systems and carbon capture and storage (CCS). These unexpected moves come hot on the heels of revelations by Saudi Arabia, the world’s biggest crude exporter, that it plans to sell off parts of its national oil company and diversify its economy away from petroleum.

They also come in the aftermath of a United Nations climate change agreement and before annual general meetings for Shell and Exxon Mobil this week, meetings at which shareholders will demand that more be done to tackle climate change.

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Royal Dutch Shell Merger Completion Results in Serious Debt Woes

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By Micheal KaufmanMay 20, 2016 at 2:09 pm EST

The energy sector has been badly affected due to substantial decline in oil and gas price. This has forced companies to implement counter steps such as capital expenditure reduction and asset disposals.

Royal Dutch Shell plc (ADR) (NYSE:RDS.A), a major oil company, is reportedly looking for buyers for its North Sea assets. The assets had been mainly bought during its multibillion takeover of BG Group.

According to a report by Bloomberg, the company is in talks with chemical producers including privately owned Neptune Oil and Gas and Ineos Group AG, established by former CEO of Centrica Sam Laidlaw. Shell could look to sell a package of assets and want to gauge buyers’ sentiments before formal assets disposals process is launched. With no final decision been made yet, there is also a possibility that the assets might be retained.

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Royal Dutch Shell Under Pressure As It Seeks To Divest North Sea Assets

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Summary

Royal Dutch Shell reportedly testing the waters for its $30 billion divestiture plan.

Most of the assets are located in the North Sea.

What will potential buyers be looking at?

Weak selling environment could result in company retaining some assets.

Gary BourgeaultMay 19, 2016 5:35 PM ET

After its $54 billion acquisition of BG Group, Royal Dutch Shell Plc (NYSE:RDS.A) (NYSE:RDS.B) had its credit rating cut after the huge increase in debt. Now it has reportedly entered into talks with interested parties in order to raise about $30 billion from the sale of assets, according to Bloomberg, citing sources not wanting to be identified.

The report said the bulk of the assets in question are from the BG acquisition, with the majority of the assets located in the high-cost North Sea region. In March, other unidentified people said Shell was also shopping assets in India and Trinidad and Tobago, along with the U.S. pipelines.

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Shareholders Outraged At BP, Shell CEO Pay Packages

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Screen Shot 2016-05-12 at 11.17.55…investors will be left holding underperforming oil stocks, whereas oil company CEOs will continue to reward themselves with fat paychecks, disregarding shareholder’s sentiments.

By RAKESH UPADHYAY: May 19, 2016

The massive revolt against the pay of BP’s chief executive, Bob Dudley, where almost 60 percent of the shareholders rejected the £14m (US$20 million) pay package is a stern warning to oil companies that investors aren’t pleased with the gaping disconnect between performance and pay structure.

Similarly, Royal Dutch Shell CEO Ben Van Beurden’s 2015 pay package, including pension and tax equalization of 5.576 million euros (US$6.1 million), is likely to face resistance from shareholders as two shareholder-advisory firms have urged them to oppose the CEO’s pay.

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Could Royal Dutch Shell plc drop to 1,000p?

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By Prabhat Sakya – Thursday, 19 May, 2016

Change is an unavoidable part of business. Schlumpeter’s concept of “creative destruction” means that no company can afford to stand still.

For example, the photographic industry, which had always been based on film, made the move to electronic CCD technology, and people now take photos not just using digital cameras but also phones and tablets.

And the television was based on the clunky and expensive cathode ray tube (CRT) for around a century, but now LCD and LED flat screens have transformed this sector.

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Has Royal Dutch Shell Plc lost its blue chip status?

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Blue chips are stocks that are considered more reliable than most of their peers. This could be because they operate in an industry that has been relatively stable in the past, or because they have an advantage over their peers, which makes their financial performance more consistent and robust than sector rivals.

With Shell’s (LSE: RDSB) share price having fallen by almost a third since its 2014 high and its bottom line forecast to decline by 35% in the current year, it appears at first glance as though Shell is not a blue-chip share. Yet despite this it still features as a core stock in a wide range of portfolios, with investors having historically viewed it as being a safe, secure and reliable investment for the long term.

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Royal Dutch Shell Clings To Its Dividend

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Casey Hoerth: May 18, 2016 

Summary

  • Management decreased operating expenses 20% year on year in the first quarter.
  • However, record low oil and gas prices have caused a large cash flow gap in Q1.
  • Results should improve in coming quarters, but I still do not expect Shell to become cash flow neutral.
  • I believe the dividend’s days are numbered, even with crude at $49 per barrel.

Upstream energy companies have taken quite a beating over the first quarter of 2016, thanks to record low crude oil prices. Brent Crude hit its $31 low back in January, and as earnings results came in over the last couple weeks, it became readily obvious to me that the carnage was widespread. Even the big integrated names took it on the chin, financially.

Royal Dutch Shell (NYSE:RDS.A) is no exception. Shell has adamantly clung to its dividend since the downturn started, and the company’s balance sheet has suffered as a result. On April 15th Moody’s downgraded Shell from Aa1 to Aa2, and outlook remains negative. It’s not too hard to see why that is.

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Shell Faces Opposition on CEO’s Pay as Bonus Seen as Excessive

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Screen Shot 2016-05-12 at 11.17.55Rakteem Katakey: May 17, 2016

Two shareholder-advisory firms recommended investors vote against the Royal Dutch Shell Plc Chief Executive Officer Ben Van Beurden’s pay, saying his bonus is “excessive.” A third adviser said shareholders should give “qualified support.”

Van Beurden’s annual bonus, equivalent to 245 percent of his salary last year, was not acceptable, Pensions & Investment Research Consultants Ltd. said in an e-mail on Tuesday. Advisory firm Glass Lewis also said shareholders should oppose the pay deal.

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Shell shareholders advised to oppose CEO’s pay

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Screen Shot 2016-05-12 at 11.17.55LONDON | BY RON BOUSSO: Tue May 17, 2016

Two investor advisory firms have recommended Royal Dutch Shell (RDSa.L) shareholders oppose the CEO’s 2015 remuneration, in the latest sign of rising discontent over pay amid falling oil prices.

Shell Chief Executive Ben van Beurden’s 2015 remuneration fell 8 percent to 5.135 million euros (£4 million) last year, when the company’s revenue dropped sharply due to low oil prices.

Proxy adviser Glass Lewis said in a report it remains “concerned by the disconnect between bonus payouts and financial performance, and the bonus scheme structure more generally”.

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Why Jim Chanos is Shorting the Oil Majors

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Screen Shot 2016-05-06 at 15.37.54By RAKESH UPADHYAY: May 16, 2016

Famous short seller Jim Chanos is shorting oil majors Royal Dutch Shell Plc and Chevron Corp, according to Bloomberg. He is operating under the belief that the negative cash flows and dividend payments using borrowed money by both the companies is an unsustainable move in the long-term.

He also believes that a preference for electric cars and trucks can seriously dent the demand for crude oil in the near future.

Shell’s current cost of supplies earnings tanked in the latest quarter from $4.8 billion to $0.8 billion. The worrying point was the $4.6 billion in cash flow against an expenditure of $6.1 billion in Capex. $3.7 billion of dividends were distributed to the shareholders, of which the company managed to settle $1.5 billion in payouts by issuing 65.7 million A shares under the scrip dividend program.

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Top Shell investor vents anger at boss pay

Screen Shot 2016-05-12 at 11.33.40“The peer group of four companies that Shell uses to benchmark its long-term incentive plans (L-tips) is too narrow and we remain concerned about the overly generous senior management pension plans.”

However, Royal London, which owns nearly £1bn of shares in Shell, said it acknowledged that the company had notched up several successes, including the completion of its £35bn takeover of BG.

Mr van Beurden stands to take home a salary of £1.4m, bonus of £3.5m, and pension of £441,000 for 2015. He also received shares worth £9.7m, which vest in three years if he hits a series of targets.

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Royal Dutch Shell Faces Criticism From Glass Lewis on Payment Plans

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Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has faced huge criticism from Glass Lewis, a shareholder advisory firm to award its CEO Ben Van Beurden with a huge bonus in 2015. The shareholder advisory firm further persuaded the shareholders of the oil giant to cast their vote against the payment plans of the company.

As reported by the Wall Street Journal, Glass Lewis said in a report: “We remain concerned by the disconnect between bonus payouts and financial performance. We find it troubling that the CEO continues to receive payouts at just short of maximum while the company’s financials deteriorate.”

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Nigeria oil output set to fall to 22-yr low on pipeline outage

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YENAGOA, NIGERIA: Wed May 11, 2016

(Reuters) – Nigeria’s oil production is set to fall to its lowest in more than two decades after Royal Dutch Shell’s local operation said it had shut a major pipeline.

Nigeria’s oil output fell close to a 22-year low this month due to attacks on oil pipelines in the southern Niger Delta, home to much of the country’s oil and gas wealth, compounding the impact of low oil prices on Africa’s largest economy.

On Wednesday, Shell Petroleum Development Co (SPDC) said it declared force majeure on Bonny Light crude exports on Tuesday after closing the Nembe Creek Trunk line (NCTL) for repairs after a leak. NCTL carries all the country’s Bonny Light.

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Why Royal Dutch Shell plc and Tullow Oil plc are in danger of a colossal correction!

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By Royston Wild – Friday, 6 May, 2016

While cooling crude prices may have put the brakes on surging commodity stocks in recent days, I believe previous heady gains leave many of the Footsie’s drillers and diggers in serious peril.

Oil giant Royal Dutch Shell (LSE: RDSB) has seen its share value march 13% during the past three months, propelled by Brent’s march back towards the $50 milestone. And Tullow Oil (LSE: TLW) has seen its stock price leap 29% since the start of February.

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Oil rivals cooperate to slash equipment costs: Shell

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LONDON | BY RON BOUSSOThu May 5, 2016

Ten oil companies including Royal Dutch Shell (RDSa.L), Chevron (CVX.N) and BP (BP.L) are working together to develop standard production equipment, a rare cooperation among rivals to save money as low oil prices put pressure on budgets.

Bespoke valves, paints and underwater equipment are among the items that could be mass-produced at a cheaper cost, Harry Brekelmans, Shell’s Projects and Technology Director told Reuters.

The companies also want to set up institutions to find future savings after the past two years’ industry downturn led to a near standstill in new project approvals.

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More North Sea job cuts on the cards at Shell

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Screen Shot 2016-05-05 at 10.07.35BY MARK WILLIAMSON: Thursday 5 May 2016

ROYAL Dutch Shell’s finance chief, Simon Henry, has said there could be more job losses in its North Sea business amid the crude price plunge but the company has no plans to move activity from the Glasgow shared service centre where 450 people work.

As the oil and gas giant posted a 58 per cent fall in first quarter profits, to $1.6 billion (£1.1bn), Mr Henry said Shell wanted to take more cost out of its UK business despite shedding 500 North Sea jobs since the oil price started tumbling in 2014.

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Shell’s BG Risk Starts to Pay as Output Added, Costs Slashed

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By Rakteem Katakey: May 4, 2016

Royal Dutch Shell Plc’s record $54 billion acquisition of BG Group Plc is starting to pay off as the assets give it higher production and cash flow, helping it beat analysts’ earnings estimates when it reported quarterly results Wednesday. 

While Europe’s biggest oil company benefits from BG’s assets, it’s cutting expenses quickly enough to ensure the takeover isn’t adding any new costs. Shell’s forecasts for capital spending and operating expenses this year are now at the same level they would have been even if it hadn’t bought BG, Chief Financial Officer Simon Henry said. A majority of the 16 percent increase in oil and gas output came from the acquisition.

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Shell finance chief refuses to rule out further North Sea job losses

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Screen Shot 2016-04-25 at 15.56.32Written by Phil Allan – 04/05/2016 12:34 pm

Shell’s finance chief has refused to rule out further job losses in the North Sea as the oil giant announced its earnings had dropped by $4billion dollars in the first quarter of 2016.

Chief financial officer Simon Henry said the voluntary redundancy packaged announced recently announced as a result of Shell’s acquisition of BG Group, may not be the last to affect the North Sea as the company continues to look at cut costs from its global operation.

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Shell cuts spending as profits fall

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The oil firm said it would reduce investment to $30bn from a planned $33bn, after coming under pressure from shareholders to cut costs.

Shell also said profits in the three months to March had fallen to $800m from $4.8bn a year earlier.

Oil prices have fallen sharply over the past 18 months.

On average, in the first three months of 2016 oil prices stood at about $35 a barrel, down from a peak of $115 a barrel in June 2014.

Excluding one-off items, Shell’s preferred measure of profit, earnings fell to $1.6bn from $3.8bn in the quarter.

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Shell profits tumble following BG merger

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By Jillian Ambrose4 MAY 2016 • 8:32AM

Shell posted a sharp fall in profits in its first set of results since merging with global gas giant BG Group, but nevertheless beat expectations against a backdrop of low oil prices.

The oil major reported first quarter profit of $455m, less than half the $942m posted in its results for the last three months of 2015 and a fraction of its $4.5bn for the same period last year.

On a cost of supplies basis, which the oil industry uses to account for fluctuations in the price of oil, Shell made $1.6bn over the first quarter of the year. This was better than analyst expectations of just over $1bn but still well below the $3.7bn in the first quarter of 2015.

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Shell cuts spending further after BG deal

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS:Wed May 4, 2016

Royal Dutch Shell (RDSa.L) on Wednesday cut its 2016 spending by another 10 percent after completing the $54 billion acquisition of BG Group, warning that low oil prices will continue to weigh.

In its first earnings results since the Feb. 15 deal that transformed it into the world’s top liquefied natural gas producer, Shell reported better-than-expected first-quarter results despite a 58 percent drop in profits.

Reflecting the deal, Shell said it sold 12.29 million tonnes of LNG in the first quarter, up 25 percent year on year. Shell’s overall oil and gas output rose 16 percent.

Shell, however, warned that low oil and gas prices, significant maintenance at production sites as well as “substantial redundancy and restructuring charges” will impact second-quarter earnings.

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Shell Q1 earnings slump to $800m

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Royal Dutch Shell (LON:RDSA) has updated investors on its first-quarter performance this morning, unveiling a hefty drop in earnings, with the oil price rout weighing on the company’s results.

Highlights from Shell’s statement:

Following completion of the acquisition on February 15, 2016, BG Group plc (“BG”) has been consolidated within Royal Dutch Shell’s results. For all practical purposes, this includes February and March 2016, as the impact for the first half of February is deemed immaterial.

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Shell’s blockbuster BG bid backfires as gas prices deflate

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Danny Fortson:    Published 1 May 2016

Nearly 300 staff gathered in the canteen of BG Group’s sprawling headquarters in Reading on Monday morning to hear what they had long been expecting: nearly all of them were being laid off or being forced to apply for new jobs.

Shell closed its blockbuster takeover of the gas giant in February. Huibert Vigeveno, a rising star within Shell charged with integrating the companies, announced that after an “office footprint review”, BG’s headquarters would shut.

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Profit fall leaves Shell struggling to justify BG deal

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Danny Fortson Published: 1 May 2016

Royal Dutch Shell is set to unveil a steep fall in profits this week, laying bare the challenge for chief executive Ben van Beurden to justify his £35bn takeover of rival BG.

Shell completed the blockbuster deal in February after investors voted it through. Despite counting six weeks of BG’s earnings, analysts expect Europe’s largest oil company to have earned just $1bn (£680m) in profits for the quarter. That compares with a surplus of $3.2bn for the same period a year ago.

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Shell to close BG head quarters near London by year end

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As part of the 10,300 job cuts it has already announced, 2,800 will come from the integration of BG and 7,500 from its existing staff and direct contractor base.

Business | Mon Apr 25, 2016 

Royal Dutch Shell (RDSa.L) will close the head office of BG Group, the gas producer it agreed to acquire for $50 billion in February, by the end of the year, it said on Monday, as part of a plan to save costs and cut 10,300 jobs worldwide.

The oil major will also offer voluntary redundancy packages to staff at the BG headquarters in Reading, near London, and to Shell staff in the UK.

This follows a similar announcement made to Dutch staff earlier this month.

The oil company is under intense pressure to rein in costs as a slump in oil prices has hit its profits.

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Investors look beyond Big Oil’s worst quarter yet

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LONDON | BY KAROLIN SCHAPS AND RON BOUSSO: Sun Apr 24, 2016

The world’s top oil companies are set to report their worst quarterly results yet in the current downturn but a recent recovery in crude prices is raising hopes the market has bottomed out.

An ever intensifying oil supply glut took global prices to a near 13-year low of $27.10 a barrel on Jan. 20, exacerbating pressure on oil producers already grappling with a more than 70 percent slide in prices since mid-2014.

“The 1Q16 reporting period looks set to be even worse than what we thought was already an especially ugly 4Q15,” said Jason Gammel, equity analyst at Jefferies.

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Oil prices drop faster than companies can cut costs

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Bloomberg News: SATURDAY, APRIL 23, 2016

The world’s biggest oil companies, set to report their worst quarterly earnings in more than a decade, are finding that their cost-cutting efforts haven’t matched the decline in crude prices over the past two years.

While producers have been deferring projects, eliminating jobs and freezing salaries, the process will take three years to complete, according to Barclays oil sector analyst Lydia Rainforth. In the meantime, profits are being hammered.

“A lot of work still needs to be done on costs,” she said. “It’s a reflection of how much costs had piled up and how long a process this is.”

For producers from Royal Dutch Shell to Chevron, reeling under the threat of credit-rating downgrades, slashing costs is the surest way of protecting balance sheets. Still, reversing course is proving painful after $100 oil persuaded companies to pump money into expensive areas in search of new deposits, hire more people and rent rigs and services at record rates. Productivity suffered.

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Nick Goodway: Why do we pay Shell to extract our oil assets?

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By Nick Goodway: 19 April 2016

My eye was caught yesterday by a document from Royal Dutch Shell snappily entitled Report on Payments to Governments for 2015. (I know, I don’t lead a very exciting life.) This is one of the myriad new reports that corporates are forced to release each year in the interests of greater transparency and good governance.

But for once, alongside the hundreds of such reports I have binned, there was some interesting stuff here. In short, the report details how much Shell paid to each government in the countries in which it operates in terms of their share of production, royalties, taxes and fees.

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Why Now May Be The Time To Sell Royal Dutch Shell Plc

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By Royston Wild : The Motley Fool – Thursday, 14 April, 2016

Despite my repeated warnings of impending doom, share prices of many of the Footie’s commodity and retail giants have been carried higher again against a backcloth of giddy investor appetite.

Diversified commodities play Anglo American (LSE: AAL) has seen its share price explode 160% during the past three months, while oil giant Shell (LSE: RDSB) has enjoyed a 31% rise. Grocery house Tesco (LSE: TSCO) has seen its share value advance by a more modest 7% during the period.

But a recovery from January’s multi-year lows does not suggest that these stocks are on the cusp of a stunning turnaround. As legendary economist John Maynard Keynes’ famously pronounced: “the market can stay irrational longer than you can stay solvent.”

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Shell Could Save $4.5 Billion by Matching BP Productivity: Chart

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Screen Shot 2016-03-15 at 10.34.57By Rakteem Katakey: April 12, 2016

Royal Dutch Shell Plc could reduce operating costs by as much as $4.5 billion a year if its employees matched the productivity of BP Plc, according to Morgan Stanley.

Shell’s output per employee in oil and gas exploration and production was 26 percent lower than BP’s last year, meaning Europe’s biggest oil company has scope to cut about 9,000 jobs in that division, Morgan Stanley analysts including Martijn Rats wrote in a report dated April 8.

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Royal Dutch Shell plc: Reasons Behind Moody’s Downgrade

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By Micheal Kaufman on Apr 11, 2016

Moody’s Investor Service reduced Shell’s issuer rating and rating of its guaranteed debt from “Aa1” to “Aa2”, and affirmed company’s Prime-1 commercial paper. Both ratings were under review for a potential downgrade, which was initiated on January, 22, 2016. Since January, the firm expected that the global oil prices will remain weak over the medium term and hinted several downgrades in the upcoming few months.

Shell Finance Netherlands Bv, a subsidiary of Royal Dutch Shell – formed for the sole purpose of issuing debt – also had its issuer rating cut from “Aa1” to “Aa2”. Moreover, Shell’s US-based subsidiary, Shell Oil Company, also got its issuer rating cut from “Aa2” to “Aa3” and has been assigned a Negative outlook.

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Moody’s downgrades Royal Dutch Shell to Aa2 negative outlook

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Markets | Fri Apr 8, 2016

* Moody’s downgrades Royal Dutch Shell to aa2; negative outlook

* Ratings downgrades and negative outlook reflect Shell’s elevated leverage following the BG acquisition

* Under a low oil price scenario, we expect Shell to generate negative free cash flow at least through 2017

* Downgrade of Shell’s ratings is driven by expectations of negative free cash flow and weaker cash flow-based metrics at least through 2017

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Shell under pressure to reduce spending

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Markets | Fri Apr 8, 2016 3:05am EDT

By Ron Bousso

LONDON, April 8 Royal Dutch Shell is under pressure from shareholders to cut annual spending below $30 billion after buying BG Group to ensure it can maintain its dividend given the slow oil price recovery.

Shell and other large oil companies slashed budgets, scrapped huge projects and cut tens of thousands of jobs last year in the face of a slump in oil prices from a June 2014 peak of nearly $116 a barrel to below $40.

Shell reduced spending by $8.4 billion to $28.9 billion last year and for the first time in more than three decades global capital spending in the oil and gas industry, known as capex, is set to fall for a second year in a row.

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Oil giants replace 75pc of production in 2015

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LONDON—The world’s biggest oil companies are draining their petroleum reserves faster than they are replacing them—a symptom of how a deep oil-price decline is reshaping the energy industry’s priorities.

In 2015, the seven biggest publicly traded Western energy companies, including Exxon Mobil Corp. and Royal Dutch Shell PLC, replaced just 75% of the oil and natural gas they pumped, on average, according to a Wall Street Journal analysis of company data. It was the biggest combined drop in inventory that companies have reported in at least a decade.

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Is It Finally Time To Give Up On Royal Dutch Shell Plc?

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By Royston Wild – Thursday, 24 March, 2016

To suggest the game is up at Shell (LSE: RDSB) could be considered ludicrous given the investor stampede of recent weeks.

The fossil fuel giant has seen its share price explode 30% in the past two months, moving in lockstep with the Brent benchmark’s surge back above the $40 per barrel milestone.

But with data surrounding the oil sector still worsening, I see little reason for crude’s recent march higher, leaving Shell’s share price in danger of a massive reversal.

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Better news for oil

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Screen Shot 2016-03-16 at 22.36.32By Ed Crooks: Friday 18 March 2016

Oil continued to creep up this week with Brent going past $42 per barrel, its highest level since early December. Crude was a beneficiary of the wider upturn in markets, which pushed the S&P 500 index briefly back up above its level at the start of the year. The positive correlation between share prices and oil prices seems to be alive and well.

Suggestions that the US Federal Reserve is in no hurry to raise interest rates gave a boost to crude and other markets. Oil was also helped by reports that Opec ministers had at last agreed to hold a meeting with leading non-Opec producers such as Russia, in an attempt to make some progress with their much-discussed, little-implemented production freeze.

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Is Royal Dutch Shell Plc In Danger Of A Colossal Correction?

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Screen Shot 2016-02-17 at 08.47.47By Royston Wild – Thursday, 17 March, 2016

Shares across the mining and energy sectors have leapt broadly higher in recent weeks thanks to a robust recovery in commodity prices.

Fossil fuel leviathan Shell (LSE: RDSB) has been one of these beneficiaries. Since striking a 12-year trough of 1,277p per share back in January, the stock has leapt 33% to claw back above the 1,700p marker just this week.

Shell’s resurgence has been underpinned by a bounceback in the oil price. The Brent benchmark reclaimed the $40 per barrel marker earlier this month,  up from the multi-year lows of $27.67 hit at the start of 2016.

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Market Report: Goldman Sachs joins supporters of Shell

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JAMIE NIMMO: Friday 11 March 2016

Goldman Sachs became the latest bulge-bracket broker to throw its weight behind Royal Dutch Shell shares after the oil giant’s mega-merger with BG.

The US bank added the supermajor to its hallowed Conviction Buy list, suggesting that more disciplined spending will help protect its rich dividend, which makes it a favourite for pensions and long-term savers.

The company is still set to splash out more than $30 billion (£21 billion) this year, joining only Petrochina above that level, but Goldman expects this budget to shrink from 2017.

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Shell names Lazard to advise on $30 billion asset sales

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LONDON | BY FREYA BERRY AND RON BOUSSO:

Business | Fri Mar 11, 2016 11:14am GMT

Royal Dutch Shell has appointed investment bank Lazard to advise it on a $30 billion (£21 billion) asset sale programme following its acquisition of BG Group last month, several banking and industry sources said on Friday.

The Anglo-Dutch company has also picked Bank of America Merrill Lynch and Morgan Stanley to work on proposed sales of assets, according to the sources, noting that more banks could yet be added to the line-up.

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Shell boss takes £300k pay cut after plummeting oil price led to 10,000 job cuts

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By EMILY DAVIES FOR THE DAILY MAIL: 11 March 2016

Shell’s boss has taken an 8 per cent pay cut after a year in which the firm was hit by plummeting oil prices and cut 10,000 jobs.

Chief executive Ben van Beurden’s salary fell from £4.4m in 2014 to £4.02m in 2015.

His total pay and benefits for the past year was £4.3m, a whopping fall from £18.7m in 2014 – though this huge pay packet was largely due to a one-off contribution to his pension following promotion to the top job.

Van Beurden’s pay is in sharp contrast to BP boss Bob Dudley who saw his 2015 pay rise almost a fifth to £13.8m – despite overseeing the company’s worst ever results with losses of £3.6bn.

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Shell boss Ben van Beurden bags a bigger bonus despite falling oil price

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RUSSELL LYNCH: 10 MARCH 2016

Royal Dutch Shell boss Ben van Beurden got a bigger bonus in 2015 — up 6% to €3.5 million (£2.7 million) — even though a tumbling oil price sank the shares by 30% last year.

The chief executive landed an overall pay deal of £5.6 million — although this was lower than 2014, when his package was swollen to €24.2 million by tax handouts and pension payments on taking the helm at the oil major.

Shell’s latest annual report showed his 2015 basic pay up to €1.47 million, but his annual bonus rising from €3.3 million to €3.5 million for a year in which van Beurden masterminded the oil giant’s mega-merger with rival BG.

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Shell CEO van Beurden’s remuneration fell in 2015

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LONDON: Business | Thu Mar 10, 2016

Royal Dutch Shell (RDSa.L) Chief Executive Ben van Beurden’s total direct remuneration fell 8 percent last year to 5.135 million euros ($5.63 million), the company said in its annual report.

His total package, including pension and tax equalisation, was 5.576 million euros, down from 24.198 million euros in the previous year, mainly due to a significant fall in van Beurden’s pension which was positively affected in 2014 by promotion to chief executive.

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Shell Seen as Best Oil Major Wager by Analysts After BG Deal

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Screen Shot 2016-02-17 at 08.47.47By Rakteem Katakey: Bloomberg.comMarch 9, 2016

Ben Van Beurden staked his reputation on Royal Dutch Shell Plc’s $53 billion acquisition of BG Group Plc as crude slumped. Analysts are rewarding the chief executive officer by putting the enlarged company in pole position to exploit a market upturn. 

Shell’s shares will rise about 12.2 percent in the next 12 months, the most among the world’s six biggest non-state oil companies, according to the target prices of analysts compiled by Bloomberg. More than 65 percent of analysts who cover Europe’s largest oil producer recommend buying the stock, the highest share among its peers.

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Are BP and Royal Dutch Shell Refinery Segments in Trouble?

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By Muhammad Ali Khawar on Feb 26, 2016

The oil and gas companies have been severely hit by a more than 70% crash in crude oil prices over the past one and a half year. Their only saving grace, however, is the high refinery margin. In 2015, the falling revenue of oil giants from the upstream segment — the likes of Exxon Mobil Corporation (NYSE:XOM), Shell, and BP — was offset by the high margins from the refinery segment.

Bidness Etc here discusses whether in 2016, the energy companies will continue to enjoy the oil refinery boom, or the glut in the downstream segment would weigh down the energy companies’ performance.

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Scant hope of an imminent rebound in prices

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The Davos of energy

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By Ed Crooks: February 26, 2016

This week many of the biggest names in the worlds of oil, gas and power were gathered at IHS CeraWeek in Houston, the annual conference that is regularly  – and accurately – described as “the Davos of energy” or  – more questionably – as “the Burning Man of energy”. It should come as no surprise that it was this event that generated most of the week’s big stories.

The star of the show was Ali al-Naimi, Saudi Arabia’s formidable oil minister, who was making his first appearance at the conference since 2009. It might have been expected to be a case of Daniel in the lions’ den. Saudi Arabia is seen by many in the industry as the architect of their troubles, because of Mr Naimi’s refusal to cut production to attempt to support prices. As it turned out, though, he won over the crowd very quickly, delivering a speech that included both a convincing explanation of his strategy, and a few pretty decent jokes.

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