Posts from ‘October, 2009’

Royal Dutch Shell Plc said it will comply with international rulings on gasoline supplies to Iran as part of United Nations sanctions against the country over its nuclear program.

DAILY MAIL

By Daily Mail Reporter
Last updated at 10:12 AM on 29th October 2009

Oil giant Royal Dutch Shell today announced it was cutting 5,000 jobs as weaker oil prices and the ailing global economy saw profits plunge.

The Anglo-Dutch company reported a decrease in profits of 73 per cent to $2.99billion (£1.83billion) between July and September.

Chief executive Peter Voser said that despite some positive signs the outlook for the industry remained tenuous.

‘We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery,’ he said.

Continuing its previously announced restructuring programme – which saw senior management numbers cut 20% – Shell added that a further 5,000 staff would be leaving the company by the end of the year. The cut represents around 5% of the firm’s global workforce of just over 100,000.

The plan has already slashed operating costs by $1billion (£686million) in the first nine months of the year.

Mr Voser said: ‘Our strategy remains on track, although the near-term industry outlook remains challenging’.

Despite the fall in profits, Shell’s results were ahead of market expectations. However this was overshadowed by results reported earlier in the week by rival BP which outstripped analyst forecasts by 50 per cent on Tuesday.

BP shares rocketed 5 per cent after the company reported cost savings of $3billion, exceeding expectations, and a rise in production of 7 per cent compared to the previous year.

Profits for the quarter halved to $4.98billion. Shell said oil and gas production for the period was unchanged on a year earlier, although the figure was higher on an underlying basis. Following the update, the company’s shares slipped 3 per cent in early trading.

AN EMAIL SENT TO SHELL CEO PETER VOSER FROM JOHN DONOVAN: 29 OCTOBER 2009 11.49 GMT

Dear Mr Voser

As well as being the operator of a well known Shell related website (royaldutchshellplc.com) I am also a long term Shell shareholder.

I received yesterday an email from a person closely associated with Shell providing a perspective on the changing mood of Shell staff arising from the restructuring. His comments struck me as being timely, genuine and well-informed. If correct, they are likely to be a cause for concern to you, your colleagues and Shell shareholders.

Have spoken to a number of Shell people recently and it’s very interesting how dispirited they are. I guess BP’s recent successes are not going to make them any happier, but there seems to be a widely held view that until/unless there is a real change in management, with rather more visionary and inspirational leaders, nothing is going to change and the downward spiral will continue. Even those people who were once strong Shell advocates, who once expected Shell to provide them with a lifelong career now know that they cannot entrust their future (and that of their family) to Shell. Many of Shell’s best people are now making their own preparations for careers outside Shell, whether or not they expect to be successful in applying for the positions currently on offer.

The need to search for positions in the new organization and make the required applications is a time consuming exercise, and has certainly focused the minds of many of Shell’s staff. However, rather than focusing their attention on the business of finding, producing and selling oil and gas, it has instead diverted the attention of the entire organization away from the business. And for many the question is no longer “how will I develop my career within Shell” – the most important question is “will the positions that I am considering really provide me with a future, and how will it look on my resume when I have to move on?”

You can take these comments on board or dismiss them as being unfounded. That is obviously your prerogative.

If you would prefer me not to send you information I consider should be brought to your personal attention, please say so and I will comply with your request. You may on the other hand consider it useful to receive input not influenced by a desire to please the boss.

Best Regards

John Donovan

LONDON (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) will only have to top up its pension fund by around $5 billion, compared with previous expectations of $6-8 billion, because of the recovery in global equity markets, said Chief Financial Officer Simon Henry Thursday.

By WSJ Staff

• October 29, 2009, 4:49 AM ET

Royal Dutch Shell’s third quarter earnings, out this morning, are a “disappointment,” says Peter Hutton at NCB. “After BP’s slam dunk results, this is only a bit up….5% is a bit anemic,” referring to how much the company’s clean current cost of supplies beat consensus by. Shell’s third-quarter clean current cost of supplies was $2.62 billion, ahead of consensus forecasts of $2.5 billion. Hutton had expected $2.89 billion. BP beat consensus forecasts by 50%, he says.

“Our third-quarter results were affected by the weak global economy. Upstream and downstream profitability has been sharply reduced compared to year-ago levels,” said Shell Chief Executive Peter Voser. “We see some indications that energy demand and pricing are improving, but the outlook remains very uncertain, and we are not expecting a quick recovery.”

Shell shares were down 3.4% in morning trading Thursday. – Dow Jones Newswires

SOURCE WSJ ARTICLE

LONDON (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) shares fell 3.4% Thursday after the company posted a 67.6% fall in adjusted third-quarter profit on lower oil and gas prices, disappointing analysts by failing to beat modest expectations.

THE WALL STREET JOURNAL

OCTOBER 29, 2009

By Alex MacDonald

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)–Anglo-Dutch oil major Royal Dutch Shell PLC’s (RDSB.LN) chief executive Thursday said 5,000 employees will leave due to a company-wide corporate restructuring program.

Peter Voser said: “The Transition 2009 program, which I announced earlier this year, is progressing well, and will be completed by the end of 2009.”

Some 5,000 employees are leaving Shell as a result of these changes. This represents around a 10% reduction in employees in the redesigned divisions and corporate functions.

Shell has cut its operating costs by some $1.0 billion in the first nine months of the year from a year earlier, Voser said. The reduction excludes the impact of exchange rate movements and non-cash pension costs.

Company Web Site: www.shell.com

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com

WSJ ARTICLE

“We continue to focus on improving our competitive cost position, simplifying Shell,” which has reduced operating costs by $1 billion in the first nine months of the year and will cut employee numbers by 5,000, or around 10% of the workforce in the restructured divisions, Voser said.