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Posts on ‘July 30th, 2004’

Shell fighter begins the big clean-up

Financial Times: Shell fighter begins the big clean-up

“it could itself become a bid target”; “if you get it hopelessly wrong, then people start sniffing around.”: “In answer to a question about whether they are sniffing now, he said: “You will have to ask the sniffers.”

By Deborah Hargreaves

Jul 30, 2004

Jeroen van der Veer, chairman of the committee of managing directors at Royal Dutch/Shell, has just completed the most bruising episode of his 33-year career at the Anglo-Dutch oil company.

He was appointed to the top post in March to clear up the mess left after the company downgraded its proved reserves by 20 per cent – a debacle that led to the departure of three executives, including Sir Philip Watts, his predecessor.

Mr van der Veer is now fighting on all fronts to put the reserves issue behind him and draft a future for Shell in which it clarifies its complex governance structures, opens itself up to the outside world and focuses on building the business. But he still has a long way to go to convince shareholders that the company has taken the issues seriously enough. read more

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Settling the bill but not the issues

FT: Settling the bill but not the issues

“companies also tend to look to their more reputable peers, of which Shell used to be one. This is no longer the case.”: “whether a management that lied to its biggest shareholders would have any compunction doing the same to Nigerian villagers.”

Published: July 30 2004 5:00 | Last Updated: July 30 2004 5:00

Part of the bill came in yesterday for Royal Dutch/Shell’s misreporting of its reserves. The Anglo-Dutch oil group said it would pay £17m to settle the UK Financial Services Authority’s charge of market abuse, and $120m (£65.8m) to settle wider charges by the US Securities and Exchange Commission, including breaking anti-fraud and reporting rules. Two US regulatory bodies also announced fines of $38m on Coral Energy, a Shell subsidiary, to settle charges of manipulating gas and electricity prices in the US. By paying the fines, Shell has been able to get these investigations closed without having to admit any wrongdoing. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell files revised statement with SEC

FT: Shell files revised statement with SEC

The revision was necessary because of the Dutch-UK oil and gas group’s serial restatements of proved reserves earlier this year.

By Clay Harris

Published: July 3 2004 5:00 | Last Updated: July 3 2004 5:00

Royal Dutch/Shell late yesterday filed its revised 20-F financial statement for 2002 with the US Securities and Exchange Commission.

The revision was necessary because of the Dutch-UK oil and gas group’s serial restatements of proved reserves earlier this year. Shell downgraded its proven reserves by 4.47bn barrels, or 23 per cent, in four separate revisions starting in January.

The 20-F statement for 2003 was filed earlier in the week. Shell said last night that all of the financial impact of the new SEC filings had been reflected in its 2003 annual report published in late May. read more

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An ocean of difference across the Atlantic

FT: An ocean of difference across the Atlantic

“It still faces a regulatory inquiry in the Netherlands, potential criminal investigation by the US Justice Department and myriad class action suits. They form a pretty powerful deterrent against following Shell’s abuse of the markets.”

By Martin Dickson

Published: July 30 2004 5:00 | Last Updated: July 30 2004 5:00

Gas guzzling cars; meal portions that would quell a giant’s hunger; tough fines by financial regulators. Is everything bigger and better in the US than the UK?

You might think so on the basis of yesterday’s news that Royal Dutch/ Shell is to pay a £17m penalty in the UK for its reserves accounting scandal, while it will pay $120m (£66m) in the US to settle with the Securities and Exchange Commission. Are the different punishments on the two sides of the Atlantic explicable and appropriate to the offence? read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Daily Mail: Shell is beached in the past

Daily Mail: Shell is beached in the past

“there are deep-seated problems at Shell that go far beyond fiddling the numbers to make the reserves look better than they were.”: “exploration and production look dire” (ShellNews.net)

Alex Brummer, Daily Mail

30 July 2004

N THE context of Shell’s enormous profits of £4.7bn over the first six months, the penalties of £83m imposed on the company by regulators over the oil reserves scandal is petty cash.

Indeed, the £17m fine by the City regulator may be the biggest ever exacted by the Financial Services Authority*, but it is unlikely to discourage other big firms from lying about their accounts if they find themselves in a temporary hole.

Shell would like us to think that this is the end of the reserves affair so that it can return to its old smug self. read more

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New York Times: Shell to Pay $150 Million in Settlement on Reserves

New York Times: Shell to Pay $150 Million in Settlement on Reserves

“Separately, the Commodity Futures Trading Commission said… Shell’s energy trading unit, Coral Energy Resources, had agreed to pay $30 million to settle accusations that it submitted false price data to publishers”

By HEATHER TIMMONS

Published: July 30, 2004

LONDON, July 29 – The Royal Dutch/Shell Group said on Thursday that it had agreed to pay a total of $150 million in fines to settle investigations by American and British securities regulators into its reporting of crude oil and natural gas reserves. The company said in January that it had substantially overstated those reserves.

The agreement eases some of the pressure on Shell, the world’s third-largest publicly held oil company. But Shell still faces a separate criminal investigation into the matter by the United States Justice Department, a continuing regulatory investigation in the Netherlands and several shareholder lawsuits. read more

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Shell to Pay $150 Million in Penalties

The Wall Street Journal: Shell to Pay $150 Million in Penalties

“Shell also has arranged with U.S. authorities to grant Dutch and British employees special diplomatic safe passage to and from American shores” (ShellNews.net)

Oil Titan Agrees to Settle With U.S., U.K. Authorities For Overstating Its Reserves

By ALMAR LATOUR and CHIP CUMMINS

Staff Reporters of THE WALL STREET JOURNAL

July 30, 2004; Page A3

The world’s third-biggest public oil company reached preliminary settlements with U.S. and British authorities to pay penalties of about $150 million for overstating one of the most vital signs of its future health, its tally of energy reserves.

Royal Dutch/Shell Group unveiled the hefty settlements after months of assiduously trying to right its relationship with regulators. It ousted top executives, turned over troves of documents and shared the full findings of an internal Shell investigation of the company’s overstatements of oil and natural-gas reserves. read more

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Daily Telegraph: Shell to pay watchdogs £80m for oil reserves row

Daily Telegraph: Shell to pay watchdogs £80m for oil reserves row

“but warned it could not put a figure on the cost of investor lawsuits.”

By Caroline Muspratt (Filed: 30/07/2004)

Royal Dutch/Shell has agreed to pay more than £80m to regulators to settle investigations into the oil giant’s overstatement of reserves, but warned it could not put a figure on the cost of investor lawsuits.

The company will pay £17m to the Financial Services Authority, the largest settlement ever paid to the UK watchdog. It will also pay $120m (£66m) to the US Securities and Exchange Commission and will spend a further $5m to develop an internal compliance programme. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Daily Telegraph: It’s a big bite for bureaucrats

Daily Telegraph: It’s a big bite for bureaucrats

“Shell shareholders are writing the cheques and, as the American lawyers get going, they will be writing more and bigger ones.”

City comment

Edited by Neil Collins, City Editor

(Filed: 30/07/2004)

Even given the salaries at the Financial Services Authority (pay peanuts and you get. . .) £17m should cover quite a few of them, so it was a good day for the bureaucrats yesterday. The fine, levied on Shell for breaching the catch-all rules on “market abuse” looks modest compared with the $120m hit from the Securities & Exchange Commission in America, but everything’s bigger over there.

In truth, the fines are a classic case of kicking the dog to punish the cat, since those in charge when Shell overstated its oil reserves have all gone (and we may be sure they have been well rewarded for their incompetence). Shell shareholders are writing the cheques and, as the American lawyers get going, they will be writing more and bigger ones. read more

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The Boston Globe: Shell to pay $151m to settle misstatements

The Boston Globe: Shell to pay $151m to settle misstatements

“fails to hold personally accountable the corporate insiders who perpetrated the fraud,”

By Associated Press

July 30, 2004

LONDON — The Royal Dutch/Shell Group of Cos. agreed to pay a $120 million penalty to US authorities for misstating its oil and gas reserves.

Shell disclosed the fine yesterday as it reported a 54 percent increase in quarterly net income that reflected high global oil prices. Net income for the three months to June 30 was $4.0 billion, compared with $2.6 billion in the same period a year earlier.

Shell said it had agreed in principle to pay a $120 million civil penalty to resolve the pending inquiry by the Securities and Exchange Commission, as well as $31 million in connection with an inquiry by British authorities. read more

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SINGAPORE PRESS: GIC Buys 5% Of Malaysia Shell Refining

SINGAPORE PRESS: GIC Buys 5% Of Malaysia Shell Refining

Friday July 30, 9:24 AM

SINGAPORE (Dow Jones)–The Government of Singapore Corp. has bought another substantial stake in a listed company in Malaysia amid signs of warmer bilateral ties between the two countries, the Business Times reports.

The investment arm of the Singapore government has emerged as possibly the third-largest shareholder of Shell Refining Co. (Federation of Malaysia), after it bought a 5% stake, or 15 million shares, in the company for S$43.91 million, the Singapore business daily says. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell’s road to redemption remains a long one

The Independent: Shell’s road to redemption remains a long one

“An extradition battle involving Shell’s former chairman Sir Phil Watts would provide splendid entertainment but it would also guarantee plenty more bad headlines”

Michael Harrison’s Outlook:

30 July 2004

Two down, only six to go. The settlements Shell announced yesterday with the Securities and Exchange Commission in America and the Financial Services Authority over here means that it can, at last, begin to put a little bit of clear water between it and the reserves reporting scandal.

Tim Morrison, Shell’s acting-finance-director-but-not-for-much-longer, insists that the £83m in fines was sufficient to make eyes water in the boardroom. But, in truth, this is the kind of sum that can be lost in the rounding for a company like Shell, which made a $4bn profit in the second quarter of the year alone. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

UK and US regulators team up and levy £83m in penalties

Financial Times: UK and US regulators team up and levy £83m in penalties

“more robust policing since the Enron scandal broke in 2001.”

By Andrew Parker in London and Adrian Michaels in New York

Jul 30, 2004

The fines meted out to Royal Dutch/Shell yesterday by the authorities on both sides of the Atlantic are indicative of regulators’ more robust policing since the Enron scandal broke in 2001.

The Financial Services Authority, the chief UK financial regulator, delivered its biggest fine by finalising a £17m penalty with Shell. But the FSA fine is dwarfed by the $120m (£66m) penalty that Shell has agreed with the Securities and Exchange Commission, the main US regulator. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Rescued by fuel sales and refining

Financial Times: Rescued by fuel sales and refining

“fails to mask the problems in Shell’s basic business of finding and producing oil.”

By James Boxell

Jul 30, 2004

Shell is reaping the benefits, like its international peers, of record oil prices as demonstrated by net adjusted earnings of $3.8bn (£2.1bn) in the second quarter of 2004.

This is 16 per cent higher than the same period last year but it fails to mask the problems in Shell’s basic business of finding and producing oil.

As Richard Rose, analyst at Oriel Securities, put it: “Their downstream business managed to get the upstream (exploration and production) business off the hook.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Setting the scene

Financial Times: Setting the scene

“Shell expects hostile takeover bids from BP and ExxonMobil within the next few months. These bids will be followed by a successful ‘white knight’ bid from Total”

By Clay Harris

Jul 30, 2004

Royal Dutch/Shell has long been known for its “scenario” planning. Mudlark’s man at the downstream end of the rumour pipeline reports the following scenario from a “senior Shell source”.

“Shell expects hostile takeover bids from BP and ExxonMobil within the next few months. These bids will be followed by a successful ‘white knight’ bid from Total, which will agree to sell some of Shell’s assets to BP and Exxon to persuade them to withdraw.” It’s something to think about. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

The Washington Times: Shell agrees on penalty to settle charges

The Washington Times: Shell agrees on penalty to settle charges

“While trying to put the scandal behind it, Shell reported a 16 percent increase in underlying second-quarter profits thanks to higher oil prices.”

Posted 30 July 04

New York, NY, Jul. 29 (UPI) — Royal Dutch/Shell has agreed to pay $150 million to settle alleged market abuse and reporting fraud in the United States and Britain.

Shell said Thursday it would pay a penalty of $120 million to the U.S. Securities and Exchange Commission and 17 million pounds ($30 million) to the British Financial Services Authority.

Shell said it would make no admissions or denials against the finding by the SEC that the company violated the anti-fraud, reporting, record-keeping and internal control provisions of the U.S. securities law. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell gets hefty fine for reserves fiasco

Business Report: Shell gets hefty fine for reserves fiasco

“The SEC found the Anglo-Dutch group had violated reporting, record-keeping and anti-trust rules”

Posted 30 July 2004

London – Energy multinational Shell said Thursday it had been fined $120 million (R753.6 million) by the Securities and Exchange Commission in the United States following the fiasco regarding the repeated downgrading of its proven reserves earlier this year.

The SEC found the Anglo-Dutch group had violated reporting, record-keeping and anti-trust rules.

An announcement by Shell in January that its oil and gas stocks were 20 percent lower than previously stated led to a spike in the oil price and a decline in its shares. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell pays huge penalties to regulators

AccountancyAge.com: Shell pays huge penalties to regulators

“Shell also confirmed that it breached market abuse provisions of the FSA’s Financial Services and Markets Act 2000”

By Kevin Reed

Posted 30 July 04

The Royal Dutch/Shell Group has agreed massive payouts to both the Financial Services Authority and the US Securities and Exchange Commission as investigations continue into the oil giant’s overstatement of oil reserves.

Shell will pay the FSA a £17m penalty, while the SEC will receive a $120m (£66m) civil penalty plus an additional $5m will be spent by the company to develop a ‘comprehensive internal compliance program’.

Shell also confirmed that it breached market abuse provisions of the FSA’s Financial Services and Markets Act 2000 and the listing rules made under it. However it is not ‘admitting or denying’ the pending findings or conclusions of either the FSA or the SEC. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

US watchdog shows its teeth

Financial Times: US watchdog shows its teeth

“Shell”; “Parmalat”; “Enron”

By Emiliya Mychasuk in London

Posted 30 July 04

The Securities and Exchange Commission, the US chief regulator, is set to chalk up two important settlements this week alone, as a result of a string of probes into accounting related issues.

Ahead of the $120m settlement with Shell announced on Thursday in which the company neither admitted nor denied wrongdoing, the bankrupt Italian dairy company Parmalat also this week agreed to an overhaul of its corporate governance as part of a deal that will eventually allow it to emerge from its restructuring next year. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell pays $151m to watchdogs

Financial Times: Shell pays $151m to watchdogs

“Thursday’s announcement has no bearing on the civil and criminal cases against individuals linked to the company.”

By Carola Hoyos, James Boxell and Deborah Hargreaves in London and Adrian Michaels in New York

Posted 30 July 04

Royal Dutch/Shell on Thursday paid $151m in fines to draw a line under its disputes with the US Securities and Exchange Commission and the UK’s Financial Services Authority.

But the world’s third largest energy group revealed the extent of the operational challenges it still faces by admitting that its production was declining and that it was unable to find sufficient new sources of oil and natural gas to replace old fields. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell agrees to pay fines of £83m

The Times: Shell agrees to pay fines of £83m

“continuing criminal investigation by the US Department of Justice.”: “Both Euronext and AFM, the Dutch securities institute, are also investigating Shell”

By Carl Mortished, International Business Editor

July 30, 2004

SHELL will pay fines totalling £83 million to UK and US stock market regulators as a penalty for offences of market abuse and violation of securities laws relating to its misreporting of oil and gas reserves.

The payments, revealed yesterday by the oil company in a statement that did not concede liability, include £17 million to the Financial Services Authority, the largest fine ever imposed by the UK regulator, and a $120 million (£66 million) civil penalty to the Securities and Exchange Commission. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

The Times: Shell and BASF set to sell $6bn plastics business

The Times: Shell and BASF set to sell $6bn plastics business

“first strategic move for the Anglo-Dutch oil company since becoming mired in its oil reserves scandal in January.”

By Carl Mortished, International Business Editor

July 30, 2004

SHELL and BASF, the German chemical company, are preparing to sell Basell, a $6 billion (£3.3 billion) global plastics business, marking the first strategic move for the Anglo-Dutch oil company since becoming mired in its oil reserves scandal in January.

Shell’s plan to cut its exposure to the chemicals sector emerged as the oil company announced second-quarter profits of $3.8 billion — a 16 per cent increase on 2003. The figures include a strong improvement in its refining and chemicals profits, but a weak result from the upstream oil production business, which suffered a 3 per cent fall in profits despite the exceptionally high oil price. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Simple solutions are best for Shell

The Times: Simple solutions are best for Shell

“One of the world’s most trusted investments lost its credibility and its top credit rating.”: “directors and top managers were the authors of Shell’s misfortunes”

By Patience Wheatcroft

July 30, 2004

SHELL shareholders have suffered enough. They have seen oil prices booming, yet their own fortunes have been shrinking. One of the world’s most trusted investments lost its credibility and its top credit rating. Investors have suffered a series of sudden downgrades of reserves of unproven value, resignations of top executives, class-action lawsuits and investigations by regulators in London, New York, Washington, The Hague and Amsterdam.

They have watched shares of their arch rival BP rise 10 per cent so far this year. BP has comfortably beaten the market and is poised to reach new highs on the strength of analysts’ plaudits and buoyant oil prices. Over the same climatically benign period, Shell shares had fallen 7 per cent, until yesterday that is. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com
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