Shell to cut $9bn from operational costs to weather oil prices crash during coronavirus

The oil giant said it “is taking immediate steps to ensure the financial strength and resilience of our business”

The Big Zero report

Royal Dutch Shell has announced plans to cut $9 billion (£7.2bn) from its operational costs to weather the collapse in oil market prices in the wake of coronavirus outbreak.

The oil giant plans to reduce operating costs by between $3-4 billion (£2.5-3.4bn) across the next 12 months while cutting its planned capital expenditure to $20 billion (£17bn) from a planned level of around $25 billion (£21.4bn).

Ben van Beurden, Chief Executive Officer of Royal Dutch Shell, said: “As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business.

“The combination of steeply falling oil demand and rapidly increasing supply may be unique but Shell has weathered market volatility many times in the past.

“In these very tough conditions, I am very proud of our staff and contractors across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and our customers.”

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