(Alliance News) - Royal Dutch Shell PLC on Monday said it will cut costs and capital expenditure and has decided not to continue with the next tranche of the share buyback programme in light of the coronavirus outbreak.
The oil major said it will axe operating costs by USD3.0 billion to USD4.0 billion over the next 12 months. Shell said it will cut annual spending to a maximum of USD20 billion dollars for 2020 from its previous expectations of USD25 billion.
"In the current environment, Shell's financial resilience is fundamental to continued investment in our strategic priorities. Shell seeks to maintain strong financial credit metrics and ensure it has a robust balance sheet to manage volatility. Shell's liquidity remains strong, with around USD20 billion in cash and cash equivalents, USD10 billion of undrawn credit lines under our revolving credit facility and access to our extensive commercial paper programmes," Shell said.
Shell added that it was taking "decisive action to reinforce the financial strength and resilience of our business so that we are well-positioned for the eventual economic recovery".
Shell 'A shares were down 2.5% at 1,035.60 pence and Shell 'B' was down 3.7% at 995.90p in London on Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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