Biggest oil giants Royal Dutch Shell World announced it would cut 10,000 employees merger with BG Group.
As planned, in 2018 Shell will sell $ 30 billion of assets if the merger with BG Group succeeded to ensure profitable business amid global oil price plunge.
This oil maker announced fourth quarter earnings in 2015 and a few days ago, and warned about tough trading period ahead.
In planned retrenchment of Shell, the company announced it would cut 10,000 employees and contractors directly during the period from 2015 to 2016 between the two companies. This is believed to move between Shell and BG consolidated.
On the sell-off of assets, Shell said, the value of assets sold in 2014 and 2015 now exceed $ 20 billion, higher than the initial plan in place is $ 15 billion in early 2014. Phase 2016-2018 The Group will continue to prepare for the sale of $ 30 billion of assets if successful merger with BG.
The decline in oil prices a huge impact to business operations of Shell. The group warned that fourth-quarter profit in 2016 is expected at 1.6 to 1.9 billion, 40% lower than the previous year.
On 20/1 Shell said profit in 2015 fell by half compared with 2014. This result is considered as a proof that the decline in oil prices has had a great influence how to power industry world output.
According to the Wall Street Journal, Shell estimated its fourth-quarter profit ranged from 1.6 to 1.9 billion, down from $ 3.3 billion last year.
Its full-year profit is expected to drop from 10.4 to 10.7 billion dollars remaining from $ 22.6 billion by 2014.
In fact, Shell has cut spending $ 4 billion in 2015, equivalent to 10% of Capex.
The completion of the transaction between BG and Shell is considered to mark the beginning of a new program to rejuvenate and improve shareholder returns.
Royal Dutch Shell, commonly known under the name Shell, was founded in 1907. It is the oil corporations Multinational link between the Netherlands and the UK and is one of the group’s largest private energy on world. Shell’s headquarters is located in The Hague – the Netherlands, registered office in London (Shell Centre). Shell’s founder Marcus Samuel. His father was a Jew to settle in Britain. Marcus Samuel was born in 1851 in London and a British national. Marcus began his business with oyster shells, shell clams … He inherited from the father’s bloodline Jewish intelligence and the ability to look at things. As a child, Marcus Samuel and father traveled around the world as well as the customer sit and negotiate with people selling seashells. His childhood was sticking to the shell, so that later was named Marcus Samuel’s Shell company.