December 4, 2020

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Shell believes it has lost up to 2 billion severance payments

Shell believes it has lost up to 2 billion severance payments


Photo: ANP

The oil and gas company Shell expects severance payments between 1.5 and 2 billion dollars for its extensive restructuring. Top financial woman Jessica Uhl said this in an interview with analysts. Shell announced at the end of September that it would cut between 7,000 and 9,000 jobs in order to cushion the effects of the corona pandemic on the energy markets and to simplify the company structure.

Ben van Beurden, CEO of Uhl and Shell, explained the third quarter results, which were presented on Thursday, to the analysts. They also stated that the Dutch-British group will sell refineries and petrochemical plants that no longer fit well into the portfolio. At the same time, the company is sticking to some locations that are important to Shell. The Pernis petrochemical complex near Rotterdam is also expected to fall into the latter category.

Shell rebounded somewhat in the third quarter after a disastrous spring. After a historically significant loss in the second quarter, the Dutch-UK group posted net income of USD 489 million for the period under review. Oil prices were slightly higher in the three months to September, aided by the cautious increase in economic activity following the loosening of global lockdowns.