By Ed Crooks in London
Published: July 24 2007 09:11 | Last updated: July 24 2007 21:57
Tony Hayward, BP’s new chief executive, has poured scorn on the idea of a merger with rival Royal Dutch Shell, saying the two companies had not been discussing a deal, and it would in any case do nothing to resolve the problems BP faced.
There was “absolutely no substance to any speculation” that a merger was under consideration, Mr Hayward said. He was speaking as BP unveiled what he described as “disappointing” profits for the first half of the year.
Underlying replacement cost profit for the second quarter was down 13 per cent at $5.35bn (£2.6bn), although it was slightly ahead of the average of analysts’ expectations.
Rumours of a tie-up between BP and Shell, Europe’s two biggest oil companies, have resurfaced recently. A deal, which would then have amounted to a takeover by BP, was considered by Lord Browne, Mr Hayward’s predecessor, in 2005.
Mr Hayward on Tuesday strongly rejected the idea: “The issues we face are operational, not strategic: we need to focus on restoring our operational performance.”
BP’s results were hit by problems at its US refineries, including Texas City, which was hit by a fatal explosion in 2005, and Whiting, which suffered a fire this year.
Between them, the two refineries have a capacity of about 830,000 barrels a day, but are running at only about 500,000 b/d. They are not expected to return to full operation until next year.
The problems have come at a time of bumper profitability in the industry, from which BP’s competitors are benefiting.
BP has also been set back by delays to large projects, including the Thunder Horse platform in the Gulf of Mexico.
Mr Hayward said: “BP’s current operational performance is not good enough. This has impacted our financial performance. I am determined to fix this.”
Mr Hayward set out a programme of changes designed to improve operations, including new management systems and the recruitment of more engineers.
About 100 people are also being redeployed from head office to front-line operations.
The dividend for the half year has been raised 10 per cent in US dollar terms. However, BP has curbed its share buy-backs, spending only $4.3bn on the net repurchase of shares.
Copyright The Financial Times Limited 2007
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.
