In response to the Covid-19 pandemic, Shell has announced a series of operational and financial initiatives designed to reduce underlying operating costs by US$3 – US$4 billion per annum over the next 12 months compared to 2019 levels,
reduce CAPEX to US$20 billion or below for 2020 from a planned level of around US$25 billion, and
achieve material reductions in working capital.
The initiatives are expected to contribute US$8 – US$9 billion of free cash flow on a pre-tax basis. Shell has said it is still committed to its divestment programme of more than US$10 billion of assets in 2019 – 2020 but timing depends on market conditions.
The company will publish its next quarterly update note on 31 March 2020 and release its 1Q20 results on 30 April 2020.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23032020/shell-reduces-capex-and-operating-costs/