THE SUNDAY TELEGRAPH (UK): Shell profits set to gush to record high: Shell, the beleaguered oil giant, is set to report record profits this week on the back of exceptionally strong crude prices.: “Jeroen van der Veer, Shell's new chief executive, is also expected to announce that the company will have to make a further cut in its proven oil and gas reserves of at least 900m barrels of oil. This is on top of the estimated 4.5bn barrels that Shell has admitted it overstated last year.” (ShellNews.net) 30 Jan 05
By Sylvia Pfeifer (Filed: 30/01/2005)
The City is expecting a massive 180 per cent increase in fourth quarter 2004 profits to $4.82bn (£2.5bn), fuelled by strong refining margins and buoyant demand for petrochemicals. Full-year profits are set to come in at $17.4bn, up 55 per cent from last year.
The Anglo-Dutch oil group is hoping that the bumper profits will help it to draw a line under a year during which it was forced to admit that it had overbooked its oil and gas reserves by more than 25 per cent. The scandal led to the departure of its three most senior executives, including Sir Philip Watts, the chairman. The oil giant was also forced to announce plans to scrap its complex dual structure in favour of a single board and a unified company.
However, Jeroen van der Veer, Shell's new chief executive, is also expected to announce that the company will have to make a further cut in its proven oil and gas reserves of at least 900m barrels of oil. This is on top of the estimated 4.5bn barrels that Shell has admitted it overstated last year. Although the latest cut was flagged up in October, the company had only reviewed about half of its oil and gas fields.
Van der Veer has admitted that his position is at stake over the reserves issue.