Shell suffers record loss due to Covid-, oil crises

Like all oil companies in the world, Shell had a very difficult 2020 due to a combination of the oil crisis and the coronavirus pandemic. The Anglo-Dutch oil and gas giant suffered a record loss of 21.7 billion dollars in 2020. A year earlier, the company still made a profit of nearly 16 billion euros, NOS reports.

A lot of supply and low prices meant that oil companies worldwide had lower than expected yields on their oil and gas. On top of that, coronavirus travel restrictions led to a collapse in the demand for kerosene, gasoline and diesel. Other oil and gas companies also suffered losses. The American ExonnMobile announced a loss of 22.4 billion euros, while the British BP suffered a loss of 5.7 billion dollars.

Shell saw its share prices halve in the last year, though it recovered again slightly at the end of the year. 2020 was also the first year since World War II that the company had to lower its dividend payments to share holders.

The Anglo-Dutch oil and gas giant is in the midst of a major reorganization that will result in between 7 thousand and 9 thousand job losses worldwide. In the Netherlands, 900 mainly office jobs will disappear.