DHAKA: Royal Dutch Shell has said it will cut its spending by another 10% this year as it warned lower oil prices were continuing to affect its business.

The oil firm said it would reduce investment to $30bn from a planned $33bn, after coming under pressure from shareholders to cut costs, reports the BBC.

Shell also said profits in the three months to March had fallen to $800m from $4.8bn a year earlier.

Oil prices have fallen sharply over the past 18 months.

On average, in the first three months of 2016 oil prices stood at about $35 a barrel, down from a peak of $115 a barrel in June 2014.

Excluding one-off items, Shell’s preferred measure of profit, earnings fell to $1.6bn from $3.8bn in the quarter.

The company also warned that low oil and gas prices, significant maintenance at production sites and ‘substantial redundancy and restructuring charges’ would hit second-quarter earnings.

BDST: 1633 HRS, MAY 04, 2016
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