Shell reports Q1 loss
THE HAGUE, May 4, 2016 – Shell posted a Q1 loss of USD 455 million on Wednesday, its first announcement since finalising the merger with BG Group in February 2016. While Shell’s quarterly slump had narrowed significantly compared with the fourth quarter of 2015, when it posted USD 942 million in losses, it still pales to its USD 4.5 billion in profit in Q1 2015.
While the results beat analysts’ expectations, Shell will nevertheless further reduce investment to USD 30 billion in 2016, equivalent to a 10% cut. “The combination with BG is off to a strong start, as a result of detailed forward planning before the completion of the transaction. This will likely result in accelerated delivery of the synergies from the acquisition, and at a lower cost than we originally set out,” CEO Ben van Beurden said.
LNG sales over the first quarter of 2016 came out at 12.29 million tonnes, representing a 25% increase in volume. Overall, oil and gas output was up by 16% over the given period.
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