LONDON – Oil giant Royal Dutch Shell says second-quarter net income fell 25 percent to $3.9 billion as the prolonged impact of lower crude prices continues to hurt the bottom line.
Shell also announced Thursday it would reduce capital investment by an additional $3 billion this year, bringing the total reduction to 20 percent over 2014 levels. The company also says it expects to cut 6,500 staff and contractor jobs in 2015.
CEO Ben van Beurden says the company is taking a prudent approach through the downturn, making sure it has the capacity to deliver a dividend to shareholders. The price of Brent crude has averaged $62 a barrel in the second quarter.
Van Beurden says the company is "delivering a competitive performance in today's oil market downturn."