NewRatings.com: Royal Dutch/Shell "underperform": “…total capital investment in its Sakhalin II phase 2 project is now projected at $20 billion… nearly double the amount estimated when the project was approved in 2003. Royal Dutch/Shell has also indicated that the increased project costs are partly on account of… miscalculations in the budgeting process. The development has raised further concerns regarding the reliability and transparency of the company's upstream projects…”: Tuesday 19 July 2005

Bear Stearns

NEW YORK, July 18 (newratings.com) - Analyst Frederick P Leuffer of Bear Stearns maintains his "underperform" rating on The Royal Dutch/Shell Group (RD.NYS).

In a research note published on July 15, the analyst mentions that the company has indicated that the total capital investment in its Sakhalin II phase 2 project is now projected at $20 billion, which is nearly double the amount estimated when the project was approved in 2003. Royal Dutch/Shell has also indicated that the increased project costs are partly on account of the rise in service costs and raw material prices, adverse currency effects and miscalculations in the budgeting process. The development has raised further concerns regarding the reliability and transparency of the company's upstream projects, Bear Stearns adds.

http://www.newratings.com/analyst_news/article_922275.html

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