By Dino Mahtani in London
Published: October 25 2007 08:25 | Last updated: October 25 2007 19:23
Royal Dutch Shell, Europe’s biggest oil company, warned that the oil price was being driven by “speculation” and “has a political premium in it rather than actually some of the fundamental drivers”.
The comments by Peter Voser, chief financial officer, came after the group reported that third-quarter earnings, on a current cost of supply basis, fell 8 per cent to $6.39bn as a result of lower refining margins and sales volumes.
Shell said its current cost of supply net profit fell to $6.39bn. But record high oil prices meant that profit attributable to shareholders rose by 16 per cent to $6.916bn.
Exploration and production revenues fell to $3.51bn, from $3.74bn in the past year, hit by lower volumes, higher tax charges and higher costs.
Third-quarter production slipped to 3.14m barrels of oil equivalent a day, from 3.25m b/d a year ago.
Gas and power earnings were $568m, down from $781m a year ago, due to lower marketing and trading results and a planned shutdown of the Bintulu gas-to-liquids plant in Malaysia.
Downstream earnings also fell, to $1.65bn from $2.16bn a year ago, mainly due to lower refining margins. Refinery processing intake was down 1 per cent.
Jeroen van der Veer, Shell’s chief executive, said: “Given the weaker industry refining margins we have seen in the quarter, these are satisfactory results.”
The figures were ahead of analysts’ forecasts and Shell’s A-shares rose 12p to £20.68 in London. Analysts had on average been expecting cost of supply net profit, excluding non-operating items, of $5.52bn, according to a Reuters poll.
But some analysts said that the results were buoyed by Shell’s corporate line, which saw $413m in earnings, reflecting higher insurance underwriting income, improved interest income and favourable foreign exchange movements. This has raised questions about whether core operations will be able to ride out some of the geopolitical and market conditions surrounding the oil and gas industry.
Shell expects to revive production from complex operations including a gas-to-liquids plant in Qatar and from its Canadian oil sands projects.
The quarterly dividend rises 14 per cent to 36 cents.
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.
