LONDON: Largest Oil Company of Europe by market value Shell has reported that fourth quarter net income fell 57 percent to $773 million due to the sharp decline in oil prices. The price of Brent crude, an international variety of oil, dropped about 50 percent last year.
Not counting the impact of changes in the oil price on inventory, the company said its quarterly earnings rose 93 percent to $4.2 billion.
Chief Executive Officer Ben van Beurden said efforts to balance growth and returns had positioned the company to handle the decline in oil prices. While lower oil prices and last year’s divestments are likely to reduce cash flow in 2015, the company must be careful not to “over-react.”
“We plan to cap our organic 2015 spending at 2014 levels,” he said in a statement. The company will remain open to opportunities in investment, but could also “further reduce spending should market conditions warrant that step.”
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