Arizona Republic: Shell reduces earnings for '03 by $203 million
May. 29, 2004 12:00 AM
LONDON - The Royal Dutch/Shell Group of Cos. on Friday reduced its 2003 earnings by $203 million in an annual report delayed by two months due to a scandal involving the downgrading of its oil and gas reserves.
Even as it sought to restore its reputation, Shell suffered another blow when a U.S. refinery said it had supplied Shell gas stations in parts of Louisiana and Florida with gasoline with potentially damaging amounts of sulfur.
Shell's revised net income for 2003 was $12.50 billion, compared with the original $12.70 billion that it announced in February, before the full extent of its reserves problems emerged.
The catalyst for these revisions was four reclassifications of its reserves, the most recent of which came Monday. The reductions totaled 23 percent, or 4.47 billion barrels, from previous levels.
Also, a Houston refinery asked the Shell gas stations that it supplies to stop selling regular and mid-grade gasoline shipped through the Port of Tampa or Broward County's Port Everglades. Motiva Enterprises said the fuel might contain too much sulfur, which wouldn't affect engines but could cause faulty gas gauge readings.