EMEA News
Shell Trims Operating Costs in Covid-19 Response
Oil major Shell is to reduce underlying operating cost in response to the covid-19 economic downturn.
The company will shave an annual $3-4 billion from its operating budget over the next 12 months compared to 2019 levels, the company said in a statement.
Other measures will see reductions in cash capital expenditure as well as "material reductions working capital".
The initiatives "are expected to contribute $8-9 billion of free cash flow on a pre-tax basis. Shell is still committed to its divestment programme of more than $10 billion of assets in 2019-20 but timing depends on market conditions."
The company said that it is "prepared to take further strategic decisions and consider changes to the overall financial framework as necessary".
US refiners have postponed non-essential work and are laying off shortime contractors.
