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Shell News Thursday, 3 February 2005

Shell News Thursday, 3 February 2005

More Shell shock: Shell cuts reserves by another 10%

FINANCIAL TIMES: Lex live: Royal Dutch/Shell: “…has now downgraded more reserves than it falsely booked.”: “After Thursday’s larger-than-expected downward reserve adjustment of 1.4bn boe, the total cumulative reserve downgrade stands at 5.87bn boe.”: “Shell’s performance does not compare favourably with recent results from US rivals, such as ExxonMobil. Its management does not even appear to enjoy the confidence of its own workforce.” ( 3 Feb 05

TimesOnline (UK): Shell’s tragic touch: “You can be sure of Shell. The company which made 20 per cent of its reserves disappear at a stroke, which made its chairman vanish and is about to turn two organisations into one, has weaved its spell again” ( 3 Feb 05

London Evening Standard: Shell’s £1m an hour profit: “Shell’s financial performance will remain overshadowed by the events of its “annus horribilis” when its reputation as one of the world’s most respected corporations was shattered.” ( 3 Feb 05

FINANCIAL TIMES: Shell cuts reserves by another 10%: “The Anglo-Dutch oil group also warned that it had only replaced between 15 and 25 per cent of the oil it pulled from the ground in 2004. Rivals such as BP and ExxonMobil have reserves replacement ratios of more than 100 per cent.”: “…the scale of the downward revision and its reserves replacement figure is further bad news for the company as it struggles to rebuild its reputation.” ( 3 Feb 0

BLOOMBERG: Shell’s 4th-Quarter Almost Triples on Oil, Gas Prices (Update2): “The company cut its reserves for the fifth time in 13 months. The shares fell as much as 1.5 percent in London.” ( 3 Feb 05

ITV NEWS: Shell reports record £9.3bn profit: “Oil producer Shell has revealed record annual profits for a UK company of $17.59 billion (£9.32 billion).”: “Chief executive Jeroen van der Veer said: “2004 was a year of extremes, with the reserves recategorisation on one hand and record net income and cash generation on the other.” ( 3 Feb 05

BBC NEWS: Shell pumps out record UK profit: “Shell has reported the largest ever annual profit by a UK company on the back of last year’s soaring oil price”: “However, the company also said it was restating its proved energy reserves for 2003 by 1.4bn barrels.” ( 3 Feb 05

Reuters: Shell cuts reserves as profit soars: “Oil giant Royal Dutch/Shell has reported another reserves cut as it announced bumper fourth quarter profits that beat consensus market forecasts.”: “Shell has been struggling to rebuild investor confidence after a reserves over-booking scandal last year that led to top management sackings and which raised serious concerns about the company’s ability to replace the oil it pumps with new finds” ( 3 Feb 05

FINANCIAL TIMES: From a handout to a hand up: “The reputations of both Shell and Citigroup are under fire – the former over its reserves scandal, the latter over its controversial bond trading. Many companies see social programmes as a way to improve their reputation, especially when trust has been battered by scandals.” ( 3 Feb 05

FINANCIAL TIMES: Unilever: no more pussyfooting please: Investors pin hopes on Anglo-Dutch reform: “Shell only embraced radical change after its reserving scandal.” ( 3 Feb 05

BLOOMBERG: Shell May Announce Fifth Reserve Cut, Rising Profit (Update1): “Chairman Jeroen van der Veer will unveil the results of a yearlong probe that already reduced oil reserves by 26 percent. The company said Oct. 28 it may have to eliminate another 900 million barrels, or 6.3 percent, from its books. Restatements led to the departure of three senior executives, more than a dozen shareholder lawsuits and U.S. and U.K. regulatory fines totaling $151.5 million.” ( Posted 3 Feb 05 and its sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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