China Financial Daily

Shell layoffs in 2010: Shell intends to lay off 1,000 people and sell six refineries
Royal Dutch Shell announced February 3, intend to cut 1,000 people, to sell six oil refineries, because of this oil refinery company to halt production of the world’s refining income to drop significantly.

Announced this plan, because of Shell’s annual profit fell 69 percent, from 31.4 billion U.S. dollars fell to 9.8 billion U.S. dollars (6.2 billion pounds), so that was CEO of gloomy prospects for the industry.

He said: “According to my 2010 outlook, I think that 2010 is not a bright year.” Shell said in 2009 the last 3 months, and its downstream operating income decreased by 17 million, including 35 in the world a refinery network.

The CEO of Shell is being restructured, stripping Shell oil refinery will enable 15% reduction in refining capacity and to reduce the crude oil processing capacity of 560,000 barrels / day refinery, including stripping of the Stanlow plant in Cheshire, as well as in New Zealand, Germany, Sweden and El Salvador, factories, these factories in the crude oil processed into gasoline, diesel and other petroleum products.

Shell said full-year 2009, the downstream profit fell 95%, down to 258 million.

The CEO said that the global economic recession greatly reduced fuel demand, industry overcapacity, especially in North America and Europe. The global economic recession has also affected the crude oil processed into gasoline and other oil products economy. Peel oil refinery might have to spend more than a year, may raise billions of dollars.

Oil and gas analysts say, given the poor profit no real signs of improvement in the industry make such a decision is wise.

The CEO must be implemented in July last year he was appointed CEO of formulation of the global reorganization plan.

He said that late last year, Shell has cut 5,000 per month more than 800 people, he wanted this year, the corporation has further reduced the cost of one billion U.S. dollars, including a further reduction of 1,000.

He said: “should be streamlined,” the staff cuts so far are mostly management and non-technical department people.

Shell said it would like the fourth quarter of last year, as the freezing of 42% in the first quarter of 2010, the share dividend, which is higher than a year ago to 40%.

After results were released, Royal Dutch Shell’s stock price fell by 2.5%, down to 16.66, slightly lower than expected price point.

Annual profits from 2008’s record 313 billion U.S. dollars on the sharp decline was caused by a drop in fuel prices in 2009, the average oil price of 56 U.S. dollars / barrel a year ago was 90 U.S. dollars / barrel, gas prices down even more severe .

Shell revealed that, unlike its greatest rival BP, the oil production last year it dropped by about 3%.

The company also said it sold the fuel last year than in 2008 young 6%, amounting to 6.156 million barrels of oil sales drop a lot more chemicals, a decrease of 10%.