Shell Profits Plummet

Fourth quarter profits of 2009 for energy group Shell fell 75% to $1.8 bn as compared to the same period of 2008. As a result, Shell has decided to cut down its refining and marketing business. It would cut its refining capacity by more than half a million barrels a day. Also, around 1000 jobs would be lost. During the year 2009, Shell had let go of around 5000 employees and managed to cut costs by nearly $2 bn. It had also sold off downstream assets worth $1.2 bn last year, which added up to around a whopping $11 bn for the last five years. It is believed that in the past 10 years, Shell has cut back its network by an astounding 30%.

Shell has also announced that it is shutting down its refinery in Canada. This, besides selling the ones it owns in Germany and the United Kingdom. In a statement released by Shell, it said, "Downstream (refining and marketing) is facing some tough times. There is a significant overhang of industry refining capacity, exacerbated by the economic downturn. That's why we have initiatives under way to refocus Shell's downstream footprint into fewer, more profitable markets with growth potential, through disposals and selective growth investment."

Royal Dutch Shell, or as we commonly know it just as Shell, is a multinational company with its origin in Netherlands and Britain. It was founded in the year 1890, and the Shell group came into existence in 1907. Its headquarters is in the Netherlands, while its registered office is in the United Kingdom. It operates in nearly a 150 countries around the world, and for the year 2009, was listed as the world's largest and second largest corporation by Fortune and Forbes respectively.