Shell profits halved in 2015

Shell expects Q4 2015 profits to be up to 50% lower than 2014 with full year write-offs of USD 7 billion, the super-major stated Wednesday in its first preliminary report on 2015.

Earnings were reported to be USD 1.6 billion-1.9 billion in the last three months of the year, down from USD 3.3 billion the year before. Yearly profits have fallen to USD 10.4 billion-10.7 billion, a drop from USD 22.6 billion in 2014.

The company is the first of the large independent oil companies to produce financial information on Q4 2015. The full report is expected to be released on February 4, the same week as ExxonMobil and BP release their own.

This projection of loss comes before Shell’s high-profile merger with BG. The acquisition has fallen in price from USD 70 billion to USD 50 billion, and Shell’s shareholder vote on the cash and share bid on January 27 is expected to pass.

The merger will give Shell a stake in oil-rich fields offshore Brazil and up its participation in the LNG market.