Royal Dutch Shell today became the latest international oil giant to report a sharp dip in 2009 profits while warning that the outlook for 2010 remained "uncertain.", dpa reported. The Anglo-Dutch concern said full-year profits fell by 69 per cent to 9.8 billion dollars last year, compared with 31.4 billion dollars in 2008. It said weaker global demand and the fall in the oil price were responsible, while announcing that a further 1,000 jobs would be cut this year under a major cost-cutting scheme. The company shed 5,000 jobs in 2009 out of a global workforce of 102,000. In a statement, Royal Dutch Shell chief executive Peter Voser said the results were were "impacted by the weak global economy." While oil prices had increased compared to a year ago, gas prices and refining margins declined sharply due to decreased demand. "We are not assuming that there will be a quick recovery," he said, "and the outlook for 2010 is uncertain." However, Voser insisted that Shell's strategy was "on track," despite a challenging short-term outlook. "We are taking steps to improve our performance, to bridge the company, and our shareholders, into a period of significant growth in coming years," he said. Shell's share price dropped by 2 per cent on the London Stock Exchange following publication of the results. The firm also reported a steep drop in fourth quarter earnings which were down by 75 per cent to 1.18 billion dollars. "Shell have realized that they are in a weak position and they are trying to turn it around, it takes time," analyst Peter Hitchens of the Panmure Gordon Group said. The results follow similar drops in profit margins reported by Exxon Mobil and Shell rival British Petroleum (BP) earlier this week.
