The large Oil giant Royal Dutch Shell just posted its Q2 results and surprisingly they’re better than expected. Despite that they are still going to make massive cuts to staff and assets.
Adjusted earnings have slumped from last year, down 37% to $3.8 billion. Still an improvement from the $3.4 billion analysts expected.
Revenue for the first half of the year is down from $220.9 billion in 2014 to $138.1 billion (£88.56 billion) this year.
Thre will be about 6,500 jobs cut across the board.
Capital investment are dropping by almost a fifth, down to $7 billion.
They’re selling $20 billion in assets over 2014-15.
The general message today from Shell is that even though they expect oil prices to bounce back, they’re still cutting costs pretty sharply. They’re also happy with progress on their takeover of BG, another huge oil firm, which was announced in April this year. Expect a [possible surge in prices when oil starts to climb back to previous prices.
Shares are up by 2.68% about an hour after the open, leading the FTSE 100.