Royal Dutch Shell Group .com

The Times: Oil price rises propel Shell to record profit: "Shell has recruited 1,000 staff this year to boost the ranks of its professional and technical personnel. Mr van der Veer admitted that salary rates at Shell were increasing.": Friday October 28, 2005  


 
SHELL posted record profits of $7.4 billion (£4.2 billion) for its third quarter yesterday and said it had survived America’s worst hurricane season with limited damage, enabling it to reap the benefit of exceptional oil price gains.

As the Dutch multinational revealed its extraordinary harvest, ExxonMobil, its American sister, also announced a record quarterly profit of $9.9 billion. Together, the profits earned by the world’s top three oil companies, including BP’s $5.3 billion, in just three months exceeded the annual income of Sri Lanka in 2004.

 
Boosted by record oil prices that averaged more than $60 per barrel during the three months to the end of September, the combined sales revenues of BP, Exxon and Shell for three months were some $300 billion, greater than the GDP of Austria last year.

Shell’s third-quarter profit included an exceptional gain of $1.6 billion from asset sales. Excluding the gains from the disposal of Gasunie pipeline assets and the sale of Basell, the petrochemical joint venture, The oil group’s third-quarter replacement cost profit increased by almost a third to $5.8 billion.

Jeroen van der Veer, Shell’s chief executive, said he was pleased with the results and predicted that Shell’s output of oil and gas for the full year would be 3.5 million barrels per day, ahead of City expectations.

“We captured the benefit of high oil and gas prices even after absorbing the impact of the hurricanes in the US,” he said.

Hurricanes Katrina and Rita swept through key Shell production areas in the Gulf of Mexico, severely damaging Mars, Shell’s largest facility in the region. Peter Voser, Shell’s finance director, said that Mars would be out of action until the second half of 2006. “Mars was exposed to winds of 175 miles per hour,” he said.

The total cost of the hurricanes to Shell’s oil production and refining activities in the Gulf will be $350 million spread over 2005 and 2006, but Mr Voser hinted that significant compensation would be recovered from insurers.

Shell has recruited 1,000 staff this year to boost the ranks of its professional and technical personnel. Mr van der Veer admitted that salary rates at Shell were increasing.

 
Print this article Send to a friend Back to top of page
ALSO IN THIS SECTION
Need to Know
 
Shell profits gush higher on record oil prices
 
Shareholders may get billions in Anglo American clear-out
 
Glitch delays trading in Max on explorers AIM debut
 
Anglo American to return $1bn to shareholders
 

  COMPANY SEARCH
 
COMPANY SEARCH
  WORLD MARKETS
 
  ADVERTISEMENT
 
BUSINESS SPECIALS
   
In the internet age, the customer is king
  NEW BUSINESS THINKING
Translate ideas into deeds
   
How controlling risk can generate value for your business
   
Why superior service is the best way for SMEs to compete
   
News, reviews and information for the smart traveller
FIND A JOB
  Search for top management positions in Engineering  
   
BUSINESSES FOR SALE
       
 
 
MBA
  In-depth information on MBAs  
 
 
LINKS
  FREE Reader Guides  
  Money Directory  
  Cash or Company Car  
  Pay cheaper gas bills  
  Times Mortgage Service  
   


Click here to return to ShellNews.net HOME PAGE


Click here to return to Royal Dutch Shell Group .com