Tuesday 24 March 2020

Shell to cut costs and close construction sites amid ‘worsening’ pandemic

Shell has announced it is cutting costs and capital expenditure as the Covid-19 pandemic sparks oil price collapse.

In a recent statement, the energy company announced it would cut down on operating costs by up to $4 billion (£3.44bn) over the next 12 months and reduce annual spending from $25 (£21.5bn) to $20 billion (£17bn).

In a bid to abate fears and limit the spread of novel coronavirus amongst larger number of construction workers, Shell has also suspended construction activities on an ethane cracker site in Pennsylvania.

The statement said that Shell would be taking “decisive action to reinforce the financial strength and resilience of our business so that we are well-positioned for the eventual economic recovery”.

Speaking on the steps being taken, Chief Executive Ben van Beurden said: “In these very tough conditions, I am very proud of our staff and contractors across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and our customers.”