Sky Sunrise Interview Thursday 2 February 2012
Eamonn Holmes interviewing Royal Dutch Shell CEO Peter Voser
Breaking news coming in from the City… Shell the petroleum giant reporting profits of more than £18 billion pounds.. 54 per cent up on last year…
Lets go to their Chief Executive Peter Voser, he’s there in Central London, Congratulations very good news for you but most people Mr Voser will be saying will we see any of these benefits on the forecourt?
Yes, thank you very much, yes I think Shell had a good year and we are pleased with our progress on the many projects in which we are investing…
On the forecourts I think two thirds of the price as you know are really going to the government… the other one third is clearly very competitively priced as you may have seen Shell made a loss in the oil products marketing business in the fourth quarter… it was a very tough environment but still we are offering very competitive prices to the customers and at the same time we are investing 30 billion dollars every year in order to achieve… lets say growth in energy so that we can satisfy the demand so that the price can actually be kept in a certain band…
So that’s a no for us, you’ll get all the benefits… we’ll get hardly any then as a result of that..
How are you able to do this when your production went down by a few per cent last year… where are the growth markets now? What is the good news?
I think the good news is clearly that we are going up in terms of production because I think so you have all these external effects that you cannot take… so… the fourth quarter was a very warm quarter, hence our production was not as strong as normally… but we are now planning for 2012 to increase our production out of our flagship projects we are coming on stream and therefore we will generate an increase in cash flow which we are forecasting to be 50 per cent over the next four years and over the next six seven years we will also produce 25 per cent more production.. will reach four million barrels… so I think that’s where the growth is going into from our side and its mainly emerging markets…
Mainly the emerging markets you say but is it true that there will be good news for the North Sea because there’s a lot of talk that you will be able to get more production that you’ll be able to extend the life of some of the North Sea oil fields?
That’s absolutely correct… We took major investment decisions in 2011 in the North Sea in projects like Clair like Schiehallion where we are actually going to invest huge sums of money to actually produce more oil out of the North Sea and I think this will clearly give a boost to the revenue generation of the UK of the government and therefore will also contribute to the economy in the UK over the next few years… there is a lot of job generation behind that within the UK… we are very proud to be part of that.
Well that’s good to hear…
When big companies like your own Mr Voser come forward with these profits… and £18 billion pounds we’ve talking about… there’s always this debate these days about executive pay, and shareholder value and your shareholders over the past year have had a bit of disquiet about what goes on in terms of bonuses and executive pay.. what have you done to be able to appease them in any way?
I think if you look back over the last 3 years our share price has gone up by 70 per cent…
SCREEN SUDDENLY GOES BLACK, CONNECTION LOST
O… obviously we ran out of something in the tank there.. it probably wasn’t Shell product… but there we go… that’s Peter Voser and he’s a very happy man because profits up 54 per cent year on year for Shell £18 billion pounds and we were just talking about shareholder revolts and somebody has revolted and pulled out the plug there…