Shell to cut 6,500 jobs after 35% decline in quarterly profits

(ShareCast News) - Royal Dutch Shell revealed 6,500 job cuts, following a 35% decline in quarterly profit and warned about the oil price slump lasting "several years".Adjusted profits of $3.8bn from the Anglo-Dutch giant, though down on an annualised basis, beat analysts' consensus estimate of $3.4bn soundly.The oil major also kept its dividend steady at $0.47 for ordinary shares and $0.94 per American depositary share.Shell wants to further reduce 2015 capital investment to $30bn, 20% below where it stood a year ago due to its dim view of the oil price environment.Operating costs are expected to fall by $4bn, or around 10%, in 2015 as part of chief executive Ben van Beurden's efficiency drive, with further reductions in operating costs expected next year.Shell said it expects $30bn of asset sales between 2016 and 2018, on top of a total of $20bn in disposals for 2014 and 2015 combined."We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," van Beurden said."We're taking a prudent approach, pulling on powerful financial levers to manage through this downturn, always making sure we have the capacity to pay attractive dividends for shareholders."Van Beurden also gave a progress report on the proposed merger with BG Group."At the same time, we are making good progress with the recommended combination with BG, which should enhance our free cash flow, create an IOC leader in LNG and deep water innovation, and be a springboard to change Shell into a simpler and more profitable company. The regulatory filings process and integration planning are both progressing well."