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July, 2004:

The Times: Strong oil market swells BP profits

The Times: Strong oil market swells BP profits

By Mike Verdin, Times Online

Posted 28 July 04

BP has credited the highest quarter for crude prices in 20 years for a surge in profits and forecast no let up in the strong oil market.

Pre-tax profits at Europe’s largest oil company for the April to June quarter were, at $6.14 billion (£3.33 billion), 81 per cent higher than a year before. On an underlying basis, the earnings rise was 23 per cent to $3.16 billion.

The increase reflected a rise of a third, to $34.47 a barrel, in a year in the price BP achieved for its oil. Production rose by 18 per cent, swollen by flows from the Russian TNK-BP joint venture. read more

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The Guardian: High oil prices boost BP profits: “outshone its scandal-hit rival Royal Dutch/Shell this year”

The Guardian: High oil prices boost BP profits: “outshone its scandal-hit rival Royal Dutch/Shell this year”

Posted 28 July 04

Energy giant BP today reported record half-year profits on the back of the highest oil prices for more than 20 years.

BP, the world’s second-biggest oil group – which has outshone its scandal-hit rival Royal Dutch/Shell this year – posted profits of $8.6bn (£4.68bn), up by one fifth from a year ago.

It is the first of the world’s top three oil companies to report second-quarter results. Exxon, the industry leader, and Shell, the world’s third-largest oil group, report later this week. read more

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BP’s Profit Soars On Higher Prices, Rising Production

The Wall Street Journal: BP’s Profit Soars On Higher Prices, Rising Production

By CHIP CUMMINS

Staff Reporter of THE WALL STREET JOURNAL

July 28, 2004; Page A2

LONDON — BP PLC said second-quarter profit more than doubled amid sharply higher energy prices, rising production from its Russian operations and a big year-earlier charge.

Soaring oil and natural-gas prices — pushed up by surging demand and worry about the security of global supplies — are also likely to benefit other major oil companies such as Exxon Mobil Corp. and Royal Dutch/Shell Group, which report results later this week. BP said crude-oil prices averaged $34.47 a barrel in the quarter, compared with $25.73 in the second quarter last year. read more

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Shell’s Argentina Unit Lifts Fuel, Diesel Prices

The Wall Street Journal: Shell’s Argentina Unit Lifts Fuel, Diesel Prices

DOW JONES NEWSWIRES

July 27, 2004 6:42 p.m.

Posted 28 July 04

BUENOS AIRES — The Argentine unit of Shell (RD) announced Tuesday that it was lifting gasoline prices by 1.4% and diesel prices by 2.9% as of midnight Wednesday.

The measure was confirmed by a Shell spokesman, who said the company had acted because of the “sustained high international oil price.”

The move follows the decision by the local unit of Exxon Mobil (XOM) SA on the weekend to push through a similar price increase. The hikes in gasoline prices are the first such increases since refiners and producers signed a government brokered price-steadying accord in January 2003. read more

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EARNINGS PREVIEW: Shell 2Q Pft Seen Up 25% At $4.17 Bln

The Wall Street Journal: EARNINGS PREVIEW: Shell 2Q Pft Seen Up 25% At $4.17 Bln

“we see no quick (organic) fix for Shell’s ailing growth platform”

DOW JONES NEWSWIRES

By Mark Long

Posted 28 July 04

LONDON — Royal Dutch/Shell Group (RD, SC) is expected to report Thursday a 25% year-on-year rise in second-quarter profit, thanks to high oil and natural gas prices, though any significant update on corporate governance issues would likely overshadow the numbers’ impact.

The Anglo-Dutch oil giant is expected to say its second- quarter profit rose to $4.17 billion from $3.115 billion a year ago, according to an average of eight analysts’ forecasts compiled by Dow Jones Newswires. read more

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Houston Chronicle: BP posts profit on low end of forecasts

Houston Chronicle: BP posts profit on low end of forecasts

“BP shares have still outperformed Shell since the start of 2004”: “BP… a better-run company”

Reuters News Service

27 July 04

LONDON – Oil giant BP reported second-quarter profit at the bottom end of forecasts today, knocking its shares, but investors said the stock remained underpinned by record oil prices and BP’s share buy-back plan.

The world’s second-biggest oil group, which has outshone scandal-hit rival Royal Dutch/Shell this year, said pro-forma net profit for the second quarter rose 23 percent from a year ago to $3.908 billion.

BP’s earnings were boosted by oil prices that have soared amid political tension in the Middle East, and by rising production at its new Russian venture. read more

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The Guardian: Kremlin soothes BP over trading in Russia

The Guardian: Kremlin soothes BP over trading in Russia

“now was the opportune time to make a takeover move for Shell, whose share price has been battered by slow growth and the oil reserves scandal.”

Terry Macalister

Wednesday July 28, 2004

Lord Browne, the BP chief executive, has sought personal assurances from the Kremlin that his investments in Russia through TNK-BP will not be hit by the Yukos affair.

He now believes the problems facing Russia’s biggest oil group are largely political – and particular to that company – having received confirmation that BP’s presence in that country is “decidedly welcome”.

Russian oil output helped BP lift second-quarter pro-forma profits by nearly a quarter to $3.9bn (£2.1bn) and brought first-half earnings to a record $8.6bn, slightly lower than expectations. read more

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Financial Times: BP earnings rise 23% as week of good news begins

Financial Times: BP earnings rise 23% as week of good news begins

“Shell was especially hit this year by the scandal that revealed it had wrongly booked more than 20 per cent of its reserves”

By Carola Hoyos, Energy Correspondent

Jul 28, 2004

BP, the UK-based energy group, yesterday foreshadowed a week of impressive earnings announcements from the world’s biggest international oil companies.

The UK-led group reported second quarter pro-forma net income of $3.91bn (£2.14bn), up 23 per cent from a year ago. It will be followed by earnings announcements from the UK’s BG today, Royal Dutch/Shell, the Anglo-Dutch group, and ExxonMobil of the US tomorrow. ChevronTexaco of the US reports on Friday, and France’s Total will reveal its results next week. read more

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International Herald Tribune: Russia aids 35% profit rise at BP

International Herald Tribune: Russia aids 35% profit rise at BP

Bloomberg News Tuesday, July 27, 2004

Higher prices also lift quarter’s results

LONDON BP, Europe’s largest oil company, said Tuesday that its second-quarter profit increased 35 percent, helped by record oil and gasoline prices and a jump in Russian production.

Net income rose to $3.43 billion, or 15.7 cents a share, from $2.54 billion, or 11.5 cents, a year earlier, the company said. The profit, the second-highest in the company’s history, foreshadows profit reports due on Thursday from Royal Dutch/Shell Group and Exxon Mobil. BP, Shell and Exxon are thought to have earned a combined $13.63 billion last quarter, according to analysts at Deutsche Bank. read more

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Houston Chronicle: BP posts profit on low end of forecasts

Houston Chronicle: BP posts profit on low end of forecasts

“BP shares have still outperformed Shell since the start of 2004”: “BP… a better-run company”

Reuters News Service

27 July 04

LONDON – Oil giant BP reported second-quarter profit at the bottom end of forecasts today, knocking its shares, but investors said the stock remained underpinned by record oil prices and BP’s share buy-back plan.

The world’s second-biggest oil group, which has outshone scandal-hit rival Royal Dutch/Shell this year, said pro-forma net profit for the second quarter rose 23 percent from a year ago to $3.908 billion.

BP’s earnings were boosted by oil prices that have soared amid political tension in the Middle East, and by rising production at its new Russian venture. read more

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Fortune.com: Now If Only Shell Could Find Some Oil

Fortune.com: Now If Only Shell Could Find Some Oil

Forget the reserve drama: At the current rate, Shell will run out of oil in a decade: “Shell will be a no-growth company at least for the next few years.”

By Janet Guyon

Posted 27 July 2004

Now that Royal Dutch/Shell has come clean about the games it was playing with its oil reserves, can it get out of the hole it’s in? That’s what investors want to know, and the prospects aren’t good. At least not in the short term.

Sure, the company is still selling lots of oil, and at high prices. But it’s only replacing 60% of the oil it is pumping, giving it the shortest reserve life—10.2 years—of any oil major. At current production rates, Shell will run out of oil in a decade. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Fortune.com: Is Shell Ready to Rebound?

Fortune.com: Is Shell Ready to Rebound?

“Forget Iraq and Iran,” says Gheit. “Royal Dutch/Shell needs a regime change.”

With the price of oil sky-high, analyst Fadel Gheit says patient investors can strike big gains on the beaten-down shares of Royal Dutch.

By Nelson D. Schwartz

From 9 August 04 issue

Right now Royal Dutch/Shell Group is the oil company Wall Street loves to hate. The reason, of course, is that its managers misled the public about the size of its reserves, prompting the resignation of the CEO and other top execs earlier this year. But with the price of oil sky-high, analyst Fadel Gheit of Oppenheimer says patient investors can strike big gains on the beaten-down shares of Royal Dutch (RD, $50), which owns 60% of the company (Shell Transport & Trading owns the rest). read more

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Western Oil Sands Pres, CEO Turcotte To Resign

The Wall Street Journal: Western Oil Sands Pres, CEO Turcotte To Resign

DOW JONES NEWSWIRES

July 26, 2004 5:17 p.m.

Posted 27 July 04

CALGARY — Western Oil Sands Inc. (WTO.T) announced that Guy Turcotte anticipates stepping down as president and chief executive at the end of this year or early next year and moving to the position of chairman.

In a news release, the company said Turcotte will succeed Geoff Cumming as chairman and Cumming will remain a director.

Western Oil said it intends to establish a vice-chairman/lead director position to be held by an independent director who will provide independent advice and input in the management of governance issues for the board. read more

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The Guardian: Make or break time

The Guardian: Make or break time

New research shows the skills learnt on gap years are a key to success in later life – if only those taking them realised before they made their plans.

Andrew Jones reports

Tuesday July 27, 2004

Gap years have been getting mixed reviews recently. Princes William and Harry have been filmed enjoying their breaks, but the press is full of stories about the dangers: last month, two gap-year students were shot in Tanzania. Some cast doubt as to whether gap years represent anything more than glorified tourism, affluent middle-class kids on expensive overseas trips. Yet my recent research, to be published by the Department for Education and Skills (DfES) later this week, shows that the right kind of gap year can be a key to success in later life. read more

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Reuters: Oil Companies Sued in California Over Asbestos Death

Reuters: Oil Companies Sued in California Over Asbestos Death

Mon Jul 26, 2004 10:47 PM ET

Posted 27 July 04

LOS ANGELES (Reuters) – The family of a California man who died of asbestos-related illnesses has sued the oil company owners of refineries where he installed insulation during his 45-year career, claiming the firms are liable for his death, the family’s lawyer said on Monday.

The widow and children of Edward Wood Jr. said the oil companies failed to warn the workers, who were employed by a subcontractor, that irreversible lung damage could result from their exposure to asbestos-laden insulation they regularly changed on the refineries’ pipes, lawyer David Rosen said. read more

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Shell Won’t Leave Nigeria – MD

AllAfrica.com: Shell Won’t Leave Nigeria – MD

Daily Champion (Lagos)

FELIX DURUMBAH, News Editor

Lagos

July 25, 2004

Posted 27 July 2004

MANAGING Director of Shell Petroleum Development Company of Nigeria (SPDCN), Mr. Basil Omiyi said at week-end that despite the crises rocking oil exploration in the Niger Delta, the firm would not pull out of the area.

He said his recent appointment as the first indigenous boss of SPDCN showed that Shell is “an equal opportunity firm.”

Speaking during an interview on the United States (U.S)-based Cable News Network, (CNN), Mr. Omiyi said Shell is “very welcome” in the Niger Delta, contrary to reports in some quarters that the firm would quit the area in 2008. read more

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Bloomberg: BP 2nd-Quarter Net Rises 35% on Higher Prices, Output (Update3)

Bloomberg: BP 2nd-Quarter Net Rises 35% on Higher Prices, Output (Update3)

“Last year, BP overtook Shell as the world’s second-largest oil company by market value after Exxon Mobil.”

July 27 (Bloomberg) — BP Plc, Europe’s largest oil company, said second-quarter profit rose 35 percent, boosted by record oil and gasoline prices and a jump in Russian production.

Net income rose to $3.43 billion, or 15.7 cents a share, from $2.54 billion, or 11.5 cents a share, a year ago, based on accounting that excludes gains or losses from holding inventories, BP spokeswoman Wendy Silcock in London said. BP shares fell as much as 1.4 percent as its result missed some analyst forecasts. read more

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BP profits at bottom of forecasts

Reuters: BP profits at bottom of forecasts

“has outshone scandal-hit rival Royal Dutch/Shell”

Tue 27 July, 2004

By Sudip Kar-Gupta

LONDON (Reuters) – BP has reported second-quarter profit at the bottom end of market forecasts but says it will continue a share buy-back programme that has buoyed investor sentiment.

The world’s second-biggest oil group, which has outshone scandal-hit rival Royal Dutch/Shell SHELL this year, said on Tuesday pro-forma net profit for the second quarter rose 23 percent from a year ago to $3.908 billion (2.123 billion pounds).

A range of analyst forecasts had given an average forecast of $4.17 billion, and the stock fell 1.1 percent to 484-1/4 pence in early trade. read more

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Royal Dutch Shell reserves problems

The Daily Telegraph: The week ahead

“Oil giant Shell suffered a further setback this month as fresh claims emerged that company directors knew as far back as October that there were problems with the reserves.”

Tuesday July 27

In April BP announced another set of record quarterly results, with a 2pc rise in pre-tax profits to $6.26billion. The oil giant also said it plans to sell off half its plastics arm to raise about $4billion.

The cash will be handed back to investors in the form of share buybacks, though the level of buybacks will depend on the oil price. The company reports first-half results today and analysts expect a strong contribution from TNK-BP as well as robust earnings as oil prices continue to climb. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Oil sector governance

Financial Times: Oil sector governance

“Royal Dutch/Shell’s reserves downgrade was a dramatic failure of corporate oversight.”

“Good reputations take time to build, but are quickly lost.”

Jul 26, 2004

Do oil sector investors care about corporate governance standards? Royal Dutch/Shell’s reserves downgrade was a dramatic failure of corporate oversight. But, with oil prices close to record highs, Shell’s share price has already regained the ground lost after the debacle, even though the outcome of its governance review is unknown.

Deutsche Bank, however, has found evidence of a link between governance standards and performance. It ranked 11 large oil companies on governance criteria – board independence, for example – with further weightings for more specific oil industry metrics such as reserves disclosure. On both rankings Shell, Repsol and ChevronTexaco achieved the lowest scores. Over the last three years, these bottom three delivered 15-20 per cent lower total shareholder returns than the top three. read more

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The Battalion: Shell foundation donates money to build University lecture hall

The Battalion: Shell foundation donates money to build University lecture hall

By Kirk Ehlig

Published: Monday, July 26, 2004

Shell Oil Company Foundation is donating $150,000 to the new $38 million Jack E. Brown building located at the corner of Spence Street and University Drive, near Zachry.

This $150,000 is going to fund a 50-seat lecture hall within the 205,000-square-foot Jack E. Brown building.

“The money helps in the construction of the building, especially toward the furnishing and implementation of the latest in instructional technology within its classroom,” said Sara Lillehaugen, assistant director of development for the Texas A&M Foundation – Engineering. read more

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Bloomberg.com: Exxon, BP, Shell to Report Jump in Second-Quarter Earnings

Bloomberg.com: Exxon, BP, Shell to Report Jump in Second-Quarter Earnings

“Both stocks have beaten the 6.4 percent drop of Shell’s shares”: “overstated oil and gas reserves for years, sending down the stock.”

July 26 (Bloomberg) — Exxon Mobil Corp., BP Plc and Royal Dutch/Shell Group, the world’s three largest publicly traded oil companies, this week will probably report surging second-quarter profits as increasing demand sent prices to a record.

The companies earned a combined $13.63 billion in the quarter, almost half the annual gross domestic product of Kazakhstan, analysts at Deutsche Bank AG forecast. A year ago, the three oil producers had profit of $9.96 billion. All of them report results this week, as does Eni SpA of Italy, Repsol YPF SA of Spain and Houston-based ConocoPhillips and Marathon Oil Corp. read more

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The Business: The new king of the oil patch

THE BUSINESS: The new king of the oil patch

Lord Browne has put BP back on the map at the forefront of the global energy industry

By Nelson Schwartz

FROM FORTUNE Magazine

25/26 July 2004

IN an industry peopled with Texans who drop their “Gs” and seem fresh from the set of Rawhide, BP’s John Browne is decidedly different. Lord Browne is as content discussing his collection of crystal goblets or contemporary art as he is BP’s latest offshore find or next big pipeline project. He prefers salmon to steak and still speaks the Queen’s English he learned at boarding school and Cambridge. read more

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The Business: Oil companies face hard drill in Kazakhstan

The Business: Oil companies face hard drill in Kazakhstan

By Richard Orange

25 July 04

FOR the hardened oil diplomats and country experts in BG Group’s offices in Almaty, Kazakhstan, last week’s visit by the local tax police, charging the UK gas firm with illegally smuggling $2.7bn (£1.5bn, €2.2bn) worth of gas across to Russia was just business as usual. But it is also yet another sign of the toughening business climate.

BG rejects the charges, saying that it has followed the letter of the law in the way it has exported gas liquids from the field it operates in Karachaganak to be processed at Orenburg in Russia. But following the law may not be enough. read more

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Royal Dutch Shell’s interim results following the reserves debacle

The Business: Broker fears dividend may be a problem

THERE is a sense of nervous expectation ahead of Royal Dutch Shell’s interim results following the reserves debacle”

25 July 04

THERE is a sense of nervous expectation ahead of Royal Dutch Shell’s interim results following the reserves debacle, which led to former chairman Sir Philip Watts being ousted earlier this year.

Goldman Sachs’ Matthew Lanstone has maintained an “in line” rating for Europe’s second-largest oil company. While attention has focused on corporate governance and the Anglo-Dutch company’s unwieldy dual board structure, Lanstone’s main concern is the dividend. He said: “Maintaining a local currency real dividend growth policy increasingly looks a stretch for Royal Dutch Shell. On our estimates the dividend payout ratio will rise to 80% for Shell… in 2006.” read more

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Reserves restatement debacle

London Evening Standard: Companies reporting next week

“The high oil price should also help the new management at Shell direct attention away from this year’s reserves restatement debacle”

23 July 2004

Posted 25 July 04

HEAVYWEIGHTS Vodafone, BP and Shell step into the spotlight in one of the busiest corporate weeks of the year.

Joining the mobile phone and oil giants in next week’s diary are Europe’s biggest drugmaker GlaxoSmithKline, telecoms group BT and four of the UK’s biggest banks. In all, some 33 companies are due to report results or issue trading updates, representing just over a 50% weighting in the FTSE 100 share index.

On Monday, Vodafone is expected to post strong customer growth when it releases key performance indicators for the first quarter. But as a muted reaction to better-than-expected growth from smaller rival mmO2 this week showed, investors will also want reassurance that industry competition is not stiffening. read more

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The oil giants’ scorecard

London Evening Standard: The oil giants’ scorecard

“How they add up: BP 66, Shell 49”: “Shell: Desperately needs to find more oil after the reserves debacle”: “Bonuses for the executive team for 2003 were scrapped in the light of the reserves scandal”

Steve Hawkes,

23 July 2004

Posted 25 July 04

HOW the two big players compare – check the scores on a range of indicators from assets to the environment.

Strategy

BP: Lord Browne has thrown BP’s exploration focus on to five new profit centres, Caspian Sea, Trinidad, Angola, Gulf of Mexico and Asian gas, as a new foundation for growth. Plans to sell off half its underperforming petrochemicals arm. Has lucrative petrol station ventures in China.

Score: 8

Shell: Desperately needs to find more oil after the reserves debacle and is now pinning its hopes on far-flung frontiers such as deepwater Brazil while staying loyal to its heartlands, such as the North Sea. The biggest private provider of liquefied natural gas in the world. read more

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Shell’s reputation among investors lies in tatters

London Evening Standard: How BP lords it over Shell “looking ahead, one is in terrific shape, the other could be in terrible trouble”: “Shell’s reputation among investors lies in tatters”

Steve Hawkes,

23 July 2004

Posted 25 July 04

AT FIRST glance, Shell and BP will appear to be running neck and neck when they post second-quarter results next week. The announcements should see both oil majors breaking the $4bn (£2.2bn) profits barrier by some distance. Making that sort of return from just three months’ business might indicate the two fierce rivals are in the rudest of health.

But the surpluses from past work do not tell the full tale of these two companies: looking ahead, one is in terrific shape, the other could be in terrible trouble. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell, the oil-and-gas group that has been rocked by write-downs

The Sunday Times: “Shell, the oil-and-gas group that has been rocked by write-downs and management turmoil unveils its bumper second-quarter figures on Thursday”

July 25, 2004

It is a busy week for corporate reporting. Shell, the oil-and-gas group that has been rocked by write-downs and management turmoil, unveils its bumper second-quarter figures on Thursday.

Rival BP reports for the same trading period, with analysts expecting pre-tax profits in the region of $4 billion.

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

City seeks assurance from FTSE big hitters as recovery falters

The Independent: The Week Ahead: City seeks assurance from FTSE big hitters as recovery falters

“The Anglo-Dutch giant is expected to announce a fall in production for the first half of anything between 2 and 9 per cent”

Edited by Tim Webb

25 July 2004

Some of the leading lights of British corporate life will use the last week of July to get their interim reporting out before the City empties for August.

The UK’s largest banking, insurance, media, oil and pharmaceutical companies all feature. With their statements coming a week after the Footsie slumped to an eight-month low over concerns about the sustainability of the global economic recovery, the stock market needs to see stronger corporate earnings.

The media sector is starting to show faint signs of recovery as advertising finally picks up, although no one is jumping for joy just yet. Pearson, owner of the Financial Times, kicks off the media reporting on Monday. Analysts at Investec Securities expect the group to report that the newspaper has lost £6m in the first six months of the year, although other analysts put this figure closer to £10m. Compared with losses of £32m for last year, that counts as good news for the pink ‘un. Performance across its larger education business and its Penguin publishing business will be flat, but the group books most of its revenues in the second half, so these numbers are of limited value. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Financial Director: The incriminating 2002 Form 20F Sarbanes-Oxley certificates signed separately by Jeroen van der Veer, Sir Philip Watts and Judy Boynton.

Financial Director: The incriminating 2002 Form 20F Sarbanes-Oxley certificates signed separately by Jeroen van der Veer, Sir Philip Watts and Judy Boynton.

(Webmasters note: the following article first published by Financial Director in June is printed below because it contains the incriminating Form 20 F signed by Jeroen van der Veer, the Chairman of the Royal Dutch Shell Group.)

Financial Director: Stringing us along? “even its new ‘Mr. Clean’, Jeroen van der Veer, could all be forced onto centre stage in Wall Street’s first major Sarbanes-Oxley prosecution”

By Anthony Harrington [02-06-2004]

Posted 24 July 04

With an investigation into Shell’s “proven” oil reserves looming, Sarbanes-Oxley may well have caught its first major false accounting scandal. read more

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The Business Times (Singapore): Caltex, Shell raise petrol prices

The Business Times (Singapore): Caltex, Shell raise petrol prices

“Factors contributing to the high petroleum product prices include tension in the Middle East, strong consumption from the China market and early concerns from the US market”

Posted 25 July 04

CALTEX and Shell have followed ExxonMobil’s lead in raising petrol prices by four cents a litre. Shell is raising petrol prices by 4 cents a litre

At midnight on Thursday, ExxonMobil raised the retail pump prices of petrol and diesel. Its three grades of petrol now range from $1.384 to $1.498 per litre, while diesel now costs 85.2 cents a litre.

ExxonMobil, which has the biggest chain of 77 Esso and Mobil service stations in Singapore, said internationally traded wholesale petrol prices have been on the increase since early July, on the average by close to 10 per cent, and they remain high. read more

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Los Angeles Times: CALIFORNIA Refinery Expert Is at Odds With Shell

Los Angeles Times: CALIFORNIA Refinery Expert Is at Odds With Shell

“The proposed closure of the refinery has generated outrage among politicians and consumers”

By Elizabeth Douglass, Times Staff Writer

July 24, 2004

Shell Oil Co.’s Bakersfield refinery is financially sound and an attractive asset for potential buyers, and the company’s decision to close it “flies in the face of common sense,” a consultant hired by the state said Friday.

Industry expert Malcolm Turner, retained by Atty. Gen. Bill Lockyer to provide an objective opinion on the refinery’s outlook, said his consulting firm disagreed with Shell’s reasons for planning to shut down the facility Oct. 1. read more

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CHINA PRESS: China OKs Refinery Project

The Wall Street Journal: CHINA PRESS: China OKs Refinery Project

Originally proposed as a joint venture with Shell, the approved refinery is to be solely funded by China National Offshore Oil Corp

DOW JONES NEWSWIRES

Posted 24 July 2004

BEIJING — A 16 billion yuan ($1=CNY8.28) refinery proposed by China National Offshore Oil Corp., or CNOOC, has been approved by state authorities, Information Times reports Friday.

The refinery, which will have an annual capacity of 12 million metric tons, will be built near CNOOC and Shell Nanhai Ltd.’s existing petrochemical project at Daya Bay in Guangdong province, the newspaper reported.

Originally proposed as a joint venture with Shell , the approved refinery is to be solely funded by CNOOC, the report said. The proposed site is about 120 kilometers from CNOOC’s Huizhou offshore oil field, it said. read more

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Marathon CEO: New Regulations On Oil Reserves Not Needed

The Wall Street Journal: Marathon CEO: New Regulations On Oil Reserves Not Needed

“Cazalot said he’s concerned scrutiny of the issue in light of the Royal Dutch/Shell Group scandal could result in unnecessary regulation.”

By JOHN M. BIERS

Of DOW JONES NEWSWIRES

Posted 24 July 04

HOUSTON — The government shouldn’t impose new regulations on petroleum companies’ reporting of oil and gas reserves, because inflation of those closely watched numbers isn’t a widespread problem, Marathon Oil Co. (MRO) Chief Executive Clarence Cazalot Jr. said Thursday night.

Cazalot said he’s concerned scrutiny of the issue in light of the Royal Dutch/Shell Group (RD,SC) scandal could result in unnecessary regulation. A congressional committee explored the issue Wednesday in Washington, and the Securities and Exchange Commission is considering whether outside auditors should have to review companies’ reserve estimates. read more

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Exciting ride ahead in oil majors’ shrinking world

The Times: Exciting ride ahead in oil majors’ shrinking world

“Merrill Lynch believes net oil output at Shell could be down between 4 per cent and 5 per cent in the second quarter”

By Carl Mortished

July 24, 2004

ENERGY is a curious industry. Demand for oil is increasing at an extraordinary rate. Petrol, jet fuel and natural gas prices are at a high, even record levels worldwide, but are oil companies spending merrily? Not really. Is oil output soaring? No, it is not.

A clutch of big oil companies report second-quarter earnings next week. Attention will be paid to profits — Deutsche Bank forecasts about $68 billion (£37 billion) for BP, ChevronTexaco, ExxonMobil, Shell and Total combined — and to Shell’s corporate governance troubles. read more

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The Globe & Mail: Imperial, Shell fall short, say analysts

The Globe & Mail: Imperial, Shell fall short, say analysts

By DAVE EBNER

Friday, July 23, 2004 – Page B2

Shell Canada Ltd. increased its dividend 14 per cent yesterday — the second hike in the past year — as it reported a big jump in second-quarter profit, fuelled by increased production at an oil sands venture where it has a majority stake.

Rival Imperial Oil Ltd. reported a lower quarterly profit compared with last year but said that with the exclusion of unusual items in the year-ago period, profit in the April-June period actually rose. read more

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The Guardian: Sorry to spoil the World Bank party, but hasn’t it lost its way?

The Guardian: Sorry to spoil the World Bank party, but hasn’t it lost its way?

“World Bank money has left a legacy of environmental and social devastation, from cyanide spills in Peru to land expropriation and water pollution at oil pipelines in Chad”

Hannah Ellis

23 July 04

Imagine a bank investing around $55bn a year in the world’s economy with the specific mandate of alleviating poverty. This is supposed to be the World Bank. It turns 60 next month – but I won’t be sending a birthday card.

The World Bank finances energy projects, often run by multinational energy corporations, including Shell and BP, in developing countries. More than 80% of the energy extracted is exported and used in the developed world. World Bank money has left a legacy of environmental and social devastation, from cyanide spills in Peru to land expropriation and water pollution at oil pipelines in Chad. The bank has blindly chanted an “economic growth” mantra to those who have questioned the appropriateness of this investment, presenting a dogmatic argument that these projects will inevitably help the poor. read more

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Borneo Bulletin: From BSP to Shell EP

Borneo Bulletin: From BSP to Shell EP

By Rosli Abidin Yahya

Chris Finlayson, Managing Director of Brunei Shell Petroleum (BSP) from 1995 to September last year, has been appointed as Chief Executive Officer of Shell Exploration and Production (Shell EP) in Africa with effect from October 1 this year.

Prior to his latest appointment, Finlayson was the Managing Director of Shell Petroleum Development Company of Nigeria (SPDC), a post he held after leaving BSP.

Finlayson, 48, however will continue to be based in Lagos, Nigeria, and retain the role of Country Chair for Nigeria. read more

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Shell to Shut Dutch Refinery Unit in September, Reuters Says

Bloomberg.com: Shell to Shut Dutch Refinery Unit in September, Reuters Says

Posted 23 July 04

Royal Dutch/Shell Group will close an oil-processing unit at its 390,000 barrel-a-day Pernis refinery in the Netherlands in September for four or five weeks of maintenance, Reuters reported, citing an unidentified spokesman.

Shell’s maintenance on the so-called crude distillation unit takes place every four years and will cut production by 195,000 barrels a day, the newswire said.

Maintenance turnarounds in the coming months are also scheduled for BP Plc’s 400,000 barrel a day Rotterdam plant and Total SA’s 149,000 Vlissingen, Netherlands plant, Reuters said, without citing anyone. read more

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Shell corporate governance dubbed ‘weak to moderate’ in S&P ratings

Financial Times: Shell corporate governance dubbed ‘weak to moderate’ in S&P ratings

“Meanwhile, the outlook on Shell’s credit rating remains negative”

By Ivar Simensen

Published: July 23 2004 5:00 | Last Updated: July 23 2004 5:00

Royal Dutch/Shell’s corporate governance profile is described as “moderate to weak” by Standard & Poor’s in the credit rating agency’s first separate report on transparency and governance at leading western corporations.

S&P added that measures taken by Shell to improve its corporate governance were viewed “positively”, although the effectiveness of these remained to be seen. read more

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Canadian Press: Shell Canada reports Q2 profit of $285M, up from $175M a year ago

Canadian Press: Shell Canada reports Q2 profit of $285M, up from $175M a year ago

Thursday, July 22, 2004

CALGARY (CP) – Profits at Shell Canada increased 63 per cent in the second quarter, helped by a significant contribution from its Athabasca oil sands project and higher refining margins.

The sharp increase in profits also prompted Shell to increase its quarterly dividend to 25 cents per share, up from 22 cents per share. Shell shares would yield about 1.5 per cent based on its current stock price.

The Calgary-based energy company said Thursday it earned $285 million or $1.04 per share for the three months ended June 30. That compared with a profit of $175 million or 64 cents per share a year ago. read more

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Shell wonder fuels: Shell Canada settles Quebec tainted gas class-action suit

Shell Canada settled a class-action lawsuit in Quebec over a gasoline additive that caused fuel systems and gas gauges to malfunction. The company said it can’t estimate the cost yet, but some reports put the figure at $100-million.

National Post: Shell Canada settles Quebec class-action suit

Bloomberg News

Thursday, July 22, 2004

Shell Canada settled a class-action lawsuit in Quebec over a gasoline additive that caused fuel systems and gas gauges to malfunction.

The company said it can’t estimate the cost yet, but some reports put the figure at $100-million.

Residents of Quebec have until Nov. 5 to file a claim against Shell Canada and may qualify for one of three levels of compensation, company spokeswoman Sonia Larin said.

Most motorists will receive between $20 and $550, Shell Canada says. Some will get more if they incurred expenses such as towing, accommodation and repairs, Ms. Larin said. The cost to Shell will depend on how compensation is paid out, Ms. Larin said. read more

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Houdini Watts: The Shell Game

MEL GIBSON: A POTENTIALLY GREAT NEW ROLE FOR THIS MOVIE SUPERSTAR?

WILL MEL SOON BE ASKED TO PLAY  THE JUICY ROLE OF A RUTHLESS CORPORATE *CROOK IN THE WORST BUSINESS SCANDAL IN HISTORY?

On BBC TV on 15th July 2004, the Shell oil and gas reserves scandal was described as the biggest corporate fraud in history. Investors had been swindled out of billions of dollars on an international basis. It therefore follows that Hollywood may soon be casting for a movie telling this incredible true story.

Under the disreputable leadership of Sir Philip Watts, the ambitious former Shell Chairman with a hard man image gained partly in **Nigeria, Shell’s oil reserves and reputation vanished, wiping several billion dollars off Shell’s share value early in 2004. Sir Philip then performed an extraordinary escape with a $2 million pay off, ending up with an $18 million pension for himself; an amazing trick by any standards. read more

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Shell Canada Settles Suit Involving Quebec Drivers –CP

The Wall Street Journal: Shell Canada Settles Suit Involving Quebec Drivers –CP

“Shell Canada could pay up to $100 million to about 500,000 Quebec drivers”

DOW JONES NEWSWIRES

Posted 22 July 04

MONTREAL — Shell Canada (SHC.T) could pay up to $100 million to about 500,000 Quebec drivers after the company and lawyers for the motorists reached an out-of-court settlement, Le Journal de Montreal reported Wednesday the Canadian Press said.

A class-action lawsuit filed last July said Shell Canada put an additive in its Bronze gas between March 2001 and March 2002 that left a residue in gas tanks and caused problems for starting vehicles and determining the exact amount of gas in a tank. read more

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SEC May Require New Rules On Audit of Oil Firms’ Reserves

The Wall Street Journal: SEC May Require New Rules On Audit of Oil Firms’ Reserves

“independent reserves assessments are increasingly popular in the wake of the Shell debacle”

By JOHN M. BIERS

DOW JONES NEWSWIRES

July 22, 2004; Page A4

HOUSTON — The Securities and Exchange Commission may require independent auditors to review the reserves of energy companies, SEC staff said in a memorandum provided to Congress, but the agency’s tack is receiving a cool reception from oil companies and lawmakers alike.

Downgrades this year of oil reserves at Royal Dutch/Shell Group and other companies has increased scrutiny over the way companies tally their energy holdings. Oil and natural-gas reserves are a widely followed benchmark for valuing energy companies, but outside auditors aren’t required to certify them. read more

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Reuters: Lawmaker Urges Oil-Reserve Accounting Overhaul

Reuters: Lawmaker Urges Oil-Reserve Accounting Overhaul

“The cuts by Shell, the world’s third-largest energy group, are being investigated by the U.S. Justice Department”

Posted 22 July 04

WASHINGTON (Reuters) – Regulators need to get moving on an overhaul of U.S. standards for valuing oil and gas reserves, a prominent Democratic congressman said on Tuesday.

“The time is past for lengthy study,” said U.S. Rep. John Dingell of Michigan, the ranking Democrat on the House Energy and Commerce Committee, in a letter to regulators, in reference to sharp, unexpected cuts by Anglo-Dutch energy group Royal Dutch/Shell Group in its reserve accounts.

“I urge you to undertake a standard-setting project in consultation with the appropriate accounting and energy regulators with all deliberate speed,” Dingell wrote in the letter to U.S. Securities and Exchange Commission Chairman William Donaldson, Financial Accounting Standards Board Chairman Robert Herz and Federal Energy Regulatory Commission Chairman Patrick Wood. read more

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Mlive.com: Nigerian oil unions suspend strike threat after talks with government, oil companies

Mlive.com: Nigerian oil unions suspend strike threat after talks with government, oil companies

By GILBERT DA COSTA

The Associated Press

Posted 22 JUly 04

ABUJA, Nigeria (AP) — Nigeria’s powerful oil unions on Wednesday called off a planned strike set for Sunday that threatened to shut down exports from Africa’s oil giant.

The announcement followed two days of talks in the capital, Abuja, by labor leaders, government officials and industry representatives from the Nigerian subsidiaries of ChevronTexaco and ExxonMobil.

In a joint statement, the parties said Nigeria’s federal government had agreed to address labor grievances including pension reforms and alleged overhiring of expatriate oil workers. read more

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US watchdog under fire over oil reserves scandal

The Times: US watchdog under fire over oil reserves scandal

“House Committee on Financial Services convened a hearing on the Shell reserves scandal.”

By Carl Mortished, International Business Editor

July 22, 2004

AMERICA’S stock market regulator, the Securities and Exchange Commission, has come under fire from US congressional leaders over its handling of the oil reserves reporting scandal.

John Dingell, a senior member of the House Energy and Commerce Committee, has attacked the SEC’s inaction over reserves writedowns at Shell and El Paso Energy. In a terse letter to William Donaldson, the SEC chairman, he expresses concern over the weak response by SEC staff in a memorandum written following the Congressman’s questions on oil reserves reporting. Mr Dingell writes: “I am underwhelmed, if not outright troubled by the staff resources and level of review that the memorandum indicates is given to these critical matters.” read more

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Legal Week reports: Slaughters to remain Shell’s top dog

Legal Week reports: Slaughters to remain Shell’s top dog

“Group general counsel Beat Hess oversees the department globally, which has more than 600 lawyers.”

22 July 04

Shell looks set to retain Slaughter and May as its primary legal adviser in the oil giant’s global legal panel review.

The FTSE 100 oil giant has already compiled a shortlist of around 20 advisers following internal discussions and will hold an informal tender process with firms over the coming weeks, with cost playing a major factor. The review started in April and is due to conclude at the end of September.

Shell, which has an annual legal budget of more than $100m (£54m), plans to cut the number of UK firms it uses for international work to around five with the intention of building closer links with a smaller number of firms. read more

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