Shell to Cut Jobs as Profits Tumble

28 October 2009 (Last Updated October 28th, 2009 18:30)

Europe's largest oil company Shell reported a 62% plunge in third-quarter earnings, adding that a “quick recovery” in energy demand and prices looked unlikely. Net income fell to $3.25bn from $8.45bn a year earlier, the company said in a statement today. The shares dropped

Europe's largest oil company Shell reported a 62% plunge in third-quarter earnings, adding that a “quick recovery” in energy demand and prices looked unlikely.

Net income fell to $3.25bn from $8.45bn a year earlier, the company said in a statement today.

The shares dropped by the biggest amount in almost three months in London trading, reported Bloomberg.

The company also said that it would cut 5,000 jobs to tackle the tough economic environment.

Chief executive officer Peter Voser said that the outlook “remains very uncertain” given forecasts that demand for crude will fall the most this year since 1980.

The results and pessimistic outlook contrast with third-quarter earnings from BP, which smashed forecasts by 50%, lifting shares on Tuesday on hopes the industry would ride the economic slump better than expected.