Pandemic drags Shell’s profit, plunges 71% in 2020
With the pandemic taking a heavy toll on global businesses, hardly hitting energy demand, Royal Dutch Shell found itself suffering from a sharp profit downturn in 2020.
Shell’s 2020 profit suffered from a 71% decline. The company’s oil and gas production was also heavily impacted, with its adjusted earnings for 2020 slumped to $4.8 billion. Based on Reuters data, it was the lowest profit to be recorded by the firm since 2000.
Despite the massive profit loss, Shell said it expected to increase its dividend for the first quarter of 2021 by 4% from the previous quarter. This would be the firm’s second slight increase since it cut its dividend by two-thirds in the first quarter of 2020 due to the coronavirus pandemic.
Shell aims to conduct major restructuring as part of its plan to reduce greenhouse gas emissions to net zero over the next 30 years. It plans to slash 9,000 jobs, or more than 10% of its workforce, as the company shifts to low-carbon energy.
Shell’s shares jumped 0.4% on Thursday.