The Observer: Shell’s cracks still showing
“…with exquisitely appalling timing – a week before the unification – Shell announced that one such scheme, its much-vaunted Sakhalin-2 liquefied natural gas project, was $10 billion over budget and well behind schedule.”: “Not only will this hurt the return Shell can make on the project, but it also hurts its credibility…”
Sunday July 24, 2005
Oliver Morgan
After a century as a two-headed Anglo-Dutch monster, Royal Dutch Shell last week left the 20th century and launched itself as a single company on the stock markets of London and Amsterdam.
It was the culmination of a year of pressure from shareholders resulting in an acceptance – albeit apparently reluctant – of the need for change from a notoriously flat-footed management. But no sooner did the new company arrive than it was slapped in the face by investors. Royal Dutch Shell shares – there are now two categories, of which more below – fell, despite the fact that fund managers are thought still to be underweight in the stock.