Shell profits plunge to 13-year low but it’s upbeat on BG link

Shares in Shell rallied, rising by 64p, or 5%, to 1500p, as van Beurden held the annual dividend at $1.88 for 2015 and said it is “expected to be at least $1.88 per share in 2016” and promised to keep a firm handle on costs.

Shell’s full-year profits were hit by $6.8 billion of one-off costs including writedowns relating to the declining value of its oil and gas assets and redundancies.

Shell also reported fourth-quarter profits of $1.8 billion, down from $4.2 billion the year before.

The company’s results come two days after BP reported a $6.5 billion loss for 2015 and announced a further 3000 jobs would be cut worldwide, at its “downstream” refinery.

BP boss Bob Dudley warned that this year is “also going to be tough” as he announced the loss.

Shell said it completed the sale of 185 service stations across the UK to independent dealers, who will all retain the Shell brand and sell its fuels.

Last week, shareholders voted through the takeover of BG by a strong majority, paving the way for the creation of Britain’s largest public company.

The deal is expected to be completed by February 15.

Not all investors are convinced of the benefits of the deal, which they argue is too expensive since the price of oil has slumped since it was struck last year.