Mubasher: The net profits of Royal Dutch Shell plunged by 71% year-on-year (YoY) to $4.8 billion in 2020, recording its lowest level in two decades, Reuters reported.

The slump in the company's annual profits is attributed to the coronavirus (COVID-19) repercussions on energy demand across the world and the sharp decline in the company's oil and gas production and profits from refining crude into fuels.

In 2019, the company's adjusted earnings recorded $16.5 billion.

The Anglo-Dutch oil major generated revenues of $180.543 billion in 2020, down from $344.877 billion in the earlier year.

During the fourth quarter (Q4) of 2020, the company's adjusted earnings retreated to $393 million from $2.931 billion in the year-ago period.

Meanwhile, the company's board has expected an around 4% rise in interim cash dividends for the first quarter (Q1) of 2021 to record $ 0.1735 per share, when compared to the previous quarter.

Commenting on the company's performance, the CEO of Royal Dutch Shell, Ben van Beurden, said: "2020 was an extraordinary year. We have taken tough but decisive actions and demonstrated highly resilient operational delivery while caring for our people, customers, and communities."

Beurden added: "We are coming out of 2020 with a stronger balance sheet, ready to accelerate our strategy and make the future of energy."