Shares in oil giant Royal Dutch Shell have fallen over 5 percent this morning, after its fourth quarter results showed a dramatic fall in profits.
The company expects fourth quarter profits of between $1.6 billion and $1.9 billion, a significant drop on the $4.2 billion it made a year ago. It also expects that full year profit will come in somewhere between $10.4 billion and $10.7 billion, well below its $10.8 billion guidance.
This comes just before Shell’s proposed takeover of BG Group, who beat their 2015 production target. The $47 billion deal is to be voted on by shareholders in the coming weeks and, despite opposition arguing that the takeover has been overvalued, Shell is confident of a positive outcome:
“The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns,” van Beurden said in a statement.
Royal Dutch Shell (LON:RDSA) are down 5.60 percent at 1288, with BG Group (LON:BG) down 1.76 percent (0959GMT).
20/01/2016
