Shell confirms profit slump; targets $15B of asset sales

|By:, SA News Editor

Shell's (RDS.A, RDS.B) Q4 net-profit equivalent slumped 71% to $2.2B, hurt by higher depreciation, increased exploration expenses, lower upstream volumes and weak industry conditions in downstream oil products.

As the company warned almost two weeks ago, earnings on a current cost of supplies basis plummeted to $2.9B from $5.6B a year earlier.

Revenue dropped to $109.24B from $116.51B. (Earnings PR)

The company plans to cut capex to $37B in 2014 from $46B in 2013 and is scrapping its troubled exploration program in Alaska.

Shell also intends to sell $15B worth of assets this year and next as it looks to increase the rate of divestments. (Strategy PR)

The firm has proposed raising its Q1 dividend by 4% to $0.47 per share (Dividend PR).