Shell announced its first quarter 2020 earning results today. Here is an overview of the company’s performance during Q1 2020 and the cost cutting measures implemented by the company aimed disappointing earning results for Q1 2020 and the current oil market downturn:
◼ Shell reported a low earning results for Q1 2020 of $2.9 Billion compared with Q1 2019. Q1 2020 earning was down by 45% compared to Q1 2019’s earning of $5.3 Billion.
◼ Implementing first ever quarterly dividends cuts since the 1940s. The company cut quarterly dividends by 65%, from $0.47 per share to $0.16 per share.
◼ Suspended share buybacks programme
◼ Reduction of $5 billion cash capital expenditure
◼ Reduction in underlying operating costs by $3-4 billion per annum
All the above shows how the major oil company sees the oil market performing in the next few quarters. Which basically does not look good.
