Shell to cut 2020 spending by $5 billion following oil price crash

Oil prices have crashed as the coronavirus pandemic has slashed global demand and becacuse of the oil price war between Saudi Arabia and Russia

Shell, Coronavirus, Covid-19

Royal Dutch Shell plans to reduce spending by $5 billion in 2020, and suspended its plan to buy back $25 billion worth of shares, following the collapse in oil prices.

The company will reduce its capital expenditure to $20 billion, down from its planned $25 billion. It is also planning to cut its operating costs by $3 billion to $4 billion in the next 12 months.

Shell expects this to boost cash generation by $8 billion to $9 billion, pre-tax.

Oil prices have crashed as the coronavirus pandemic has slashed global demand and becacuse of the oil price war between Saudi Arabia and Russia.

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