Shell Steps Up Asset Disposal

Shell has posted profits of $2.9bn (£1.7bn) for last quarter of 2013, down from $5.6bn on the period in 2012.

This took full-year profits to $19.5bn, against $25.3bn in 2012, but in line with forecasts after a profits warning.

Chief Executive Ben van Beurden said "the landscape the company had expected has changed".

Beurden took over as Chief Executive on 1st January, replacing Peter Voser.

"Our overall strategy remains robust, but 2014 will be a year where we are changing emphasis, to improve our returns and cash flow performance,” Beurden said.

Capital spending will fall to $37bn this year from $46bn in 2013, Shell said, adding that, for the time being, it was also scrapping a controversial exploration programme in Alaska.

The Anglo-Dutch company said it would increase the pace of asset sales, targeting disposals of $15bn this year.

"We are making hard choices in our worldwide portfolio to improve Shell's capital efficiency," Beurden said.

"The landscape the company had expected has changed. Factors such as the worsening security situation in Nigeria in 2013, and delays to non-operated projects in several other countries, have altered the outlook.” Beurden continued.

"Oil prices remain high globally, but North America natural gas prices and associated crude markers remain low."

By Beth Nyaga

Source: BBC News