(Bloomberg) --
Royal Dutch Shell Plc dropped to the lowest in 25 years a day after announcing a companywide overhaul, demonstrating the scale of the challenge the biggest oil companies face convincing investors about their green ambitions.
Along with its European peers, Shell is embarking on a transformation to become a cleaner, greener company with much fewer assets in oil by the middle of the century. While many investors have welcomed the new direction, others question a pivot into less-profitable renewables
Shell’s B shares closed at 907.3 pence on Thursday, the lowest level since November 1995. It’s London-based competitor BP Plc also fell to a 25-year low for a second week running, closing at 218.2 pence.
The Anglo-Dutch major announced Wednesday as many as 9,000 job losses by the end of 2022, which it predicts will result in cost savings of as much as $2.5 billion dollars. The redundancies are part of a wider restructuring of the company as it seeks to slash its greenhouse gas emissions and move into cleaner energy.
Shell and its peers have been battling with the impact the coronavirus pandemic has had on global demand and oil prices. The major slashed its dividend for the first time since the Second World War, as well as capital spending earlier this year, in a bid to reduce costs.
The stock has declined 59% year-to-date, compared to 22% for the FTSE 100 Index. Shell’s competitors BP Plc are down 54% this year, while Total has fallen by 42%.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
"low" - Google News
October 01, 2020 at 10:51PM
https://ift.tt/33hbTcO
Shell Shares Fall to 25-Year Low After Reorganization Update - Yahoo Finance
"low" - Google News
https://ift.tt/2z1WHDx
Bagikan Berita Ini
0 Response to "Shell Shares Fall to 25-Year Low After Reorganization Update - Yahoo Finance"
Post a Comment