Deals
Shell Deepens Spending Cuts, Promises More Savings From BG
- Company trims expected 2016 capex by $1 billion to $29 billion
- Free cash flow, return on capital to rise at $60-a-barrel oil
Shell Cuts Spending Plans Further
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Royal Dutch Shell Plc cut spending plans further and promised increased savings following its record purchase of BG Group Plc, as Europe’s largest oil company continues to adjust to the slump in energy prices.
Shell will spend $29 billion this year, it said Tuesday. That compares with a May forecast for capital expenditure “trending toward” $30 billion, which was itself down from an earlier projection of $33 billion. Synergies from the BG acquisition will provide $4.5 billion in savings in 2018, up from an earlier estimate of $3.5 billion.