Sunday Telegraph: Market miscellany: It’s too early to buy Shell
“Over the past year Shell has made a habit of delivering nasty surprises, notably its disastrous admission in January that it had overbooked its proven oil and gas reserves by 25 per cent. Last week the oil giant’s long-awaited strategy presentation for once contained no surprises – but it didn’t impress either.”
Edited by Grant Ringshaw
(Filed: 26/09/2004)
Over the past year Shell has made a habit of delivering nasty surprises, notably its disastrous admission in January that it had overbooked its proven oil and gas reserves by 25 per cent.
Last week the oil giant’s long-awaited strategy presentation for once contained no surprises – but it didn’t impress either. The presentation went some way towards addressing Shell’s fundamental problem – the need to find more oil and gas reserves.
Sensibly, the oil giant has pledged to spend $15bn a year between now and 2006 on capital expenditure, with $1.5bn earmarked for exploration. It is also hoping to sell off $10bn to $12bn of non-core assets.
Unfortunately, it takes a long time to turn a supertanker around. The company’s strategy to focus on building long-term “legacy” projects that will last for 20 to 30 years is sensible, but production will remain flat until 2009. The company also admitted that its reserve replacement rate would be only 100 per cent over the next five years – well below its rivals.
Shareholders were also disappointed that the company made no promise to hand back cash – in contrast to rival BP – although it has pledged to keep increasing its dividend. Shares in Shell (407.25p) have regained some of their losses in recent months, but are still trading at a discount to its peers.
Longer-term investors should wait until November’s corporate governance review to gain a better insight into whether the company has turned the corner. A positive update might be a catalyst to buy the shares, but for now investors looking for short-term gains should steer clear.
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.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
