Shell earnings set to be cut by half amid plunging crude oil prices

Oil giant Royal Dutch Shell said earnings are expected to more than halve for 2015 after being hammered by plunging crude prices.

The group, which is weeks away from completing a 55 billion US dollar (£38 billion) deal to buy BG Group, said it expects full-year underlying earnings to tumble to between 10.4 billion dollars (£7.3 billion) and 10.7 billion dollars (£7.6 billion).

This is slightly below expectations in the City and marks a sharp fall on the 22.56 billion dollars (£15.9 billion) reported for 2014.

Ben van Beurden, chief executive of Royal Dutch Shell, said the deal with BG Group will mark the start of a "new chapter in Shell, to rejuvenate the company".