THE WALL STREET JOURNAL
APRIL 19, 2010 By JAMES HERRON
LONDONFitch Ratings on Monday revised its outlook for energy giant Royal Dutch Shell PLC’s credit rating to negative from stable, citing doubts that the company’s medium-term cash flow will be strong enough to maintain its current double-A-plus rating.
The decision is a blow for Shell, which is nearing the end of a major restructuring and hopes that 2010 will mark a turnaround from its weakening performance in recent years.
“Despite Shell’s forecasted production increase of approximately 600,000 barrels of oil equivalent [a day] by 2014 in a $60 per barrel price environment, the company’s operating cash flow in the medium term may be insufficient to restore its financial profile,” Fitch said in a statement.
Shell could have its rating downgraded in the future if it doesn’t increase oil and gas production, hold down spending in its North American operations or recover from operational weakness in refining and petrochemicals, Fitch said. But the company could have its outlook return to stable if it can demonstrate it is able to generate enough cash to cover capital expenditure and dividends, and use the extra money to pay down its debt, Fitch added.
Shell’s gearing, or ratio of net debt to total capital, at the end of 2009 was 15.5%, well below its maximum level of 30%, although the figure does not include pension liabilities.
Write to James Herron at [email protected]
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.
