TEMPO.CO, Denhaag - Dutch multinational oil company Royal Dutch Shell is forced to cut about 6,500 jobs globally following its poor performance. The Denhaag-based oil company just announced its decline of profit and revenue in the second quarter of 2015.
Poor performance is due to the drop in world oil prices particularly in the United States (US) from last until this summer. Last summer, world oil prices drastically plummeted making fuel prices in the US to under US$ 2 per galon.
Shell will also be cutting its operational cost for effiency. This year, it will reduce production cost totaling 3.66 billion euros (US$ 4 billion or Rp 54.04 trillion). Investment will also be cut to US$ 7 billion.
Shell announced a decreased in revenue (including share of profit of joint ventures and associates, interest and other income) in the second quarter of 2015 from 101.72 billion euros in Q2 2014 to 66.22 billion euros in Q2 2015. Meanwhile the total revenut plummeted from 105.5 billion euros to 67.7 billion euros.
"We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," Shell's CEO Ben van Beurden said Sunday, Aug 2.
Beurden said the company must take a wise decision amid these conditions. “Always making sure we have the capacity to pay attractive dividends for shareholders," the CEO said.