Newspaper article The Evening Standard (London, England)

Shell's Bonus for City as Drilling for Savings Yields Extra $1 Billion

Newspaper article The Evening Standard (London, England)

Shell's Bonus for City as Drilling for Savings Yields Extra $1 Billion

Article excerpt

Byline: Russell Lynch

ROYAL Dutch Shell boss Ben van Beurden delivered a $1 billion (PS688 million) present to the City today as he pumped up more savings from the oil major's $54 billion megamerger with rival BG Group.

The shares rose almost 3%, or 48p, to 1749p as the cost-cutting drive, which has stepped up a gear since the deal completed in January, now promises $4.5 billion in savings by 2018.

That compares with the $3.5 billion previously estimated.

The latest savings will not involve further job cuts on top of the extra 2200 announced two weeks ago by the firm, which took the total number of jobs shed through the merger to at least 12,500.

These reductions include 475 jobs at its North Sea business in Aberdeen.

Shell also took an axe to capital spending as the company looks to weather an oil price hovering around $50 a barrel, less than half the level of two years ago.

The blue-chip now intends to spend just $29 billion this year, more than a third below the $35 billion spent by the two companies separately in 2014. …

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