Shell upbeat ahead of BG deal

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Royal Dutch Shell has said it expects full year profits of between $10.4bn and $10.7bn just a week before shareholders vote on its planned takeover of smaller rival BG Group.

For the final three months of 2015, it expects profits of $1.6bn to $1.9bn.

The oil firm has issued the preliminary results to enable investors to have up-to-date information on its performance ahead of the vote on 27 January.

Chief executive Ben van Beurden said he was “pleased” with the results.

“The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns,” he added.

Royal Dutch Shell’s results are calculated on the basis of replacement cost, which reflects the current cost of supplies and is widely seen as the best measure of an oil firm’s underlying performance.

In April, Shell announced it had agreed to buy oil and gas exploration firm BG Group in a £47bn deal.

Source: BBC

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