Shell to cut US$9bn from CAPEX and OPEX budgets
24 March, 2020
Oil and gas supermajor Royal Dutch Shell plans to cut US$9bn (£7.7bn) from its spending plans in the wake of the coronavirus outbreak and the collapse of oil prices.
The oil giant announced plans to cut its operating costs by between US$3bn (£2.6bn) and US$4bn (£3.4bn), while reducing its planning capital expenditure by US$5bn (£4.2bn) to US$20bn (£17.1bn).
Plans to buy back the shares which were paid in lieu of a dividend during the last market downturn in 2016 will also be suspended.
The Anglo-Dutch oil giant hopes the intervention will be enough to ensure cash flow to maintain one of the biggest annual shareholder payouts of any company, approximately US$16bn (£13.7bn) in dividends each year.