The Guardian: Strategic thinking boosts Shell: “In response to the reserves scandal in January, Shell, which is made up of two companies - Shell Transport & Trading and Royal Dutch Shell - launched an in-depth review of its byzantine corporate structure and complex decision-making processes. ShellNews.net)

Neil Hume

Thursday October 28, 2004

EXTRACT FROM ARTICLE

Nymex crude futures down $1.80 a barrel, Shell Transport & Trading up 2.85% - explain.

That was the paradox City traders were wrestling with yesterday as the Anglo-Dutch oil company registered the fourth biggest rise in a strong FTSE 100 .

The conclusion they came to is that today's third-quarter figures from Shell will either be accompanied by an enormous disposal or its eagerly awaited strategic review.

In response to the reserves scandal in January, Shell, which is made up of two companies - Shell Transport & Trading and Royal Dutch Shell - launched an in-depth review of its byzantine corporate structure and complex decision-making processes.

Following pressure from shareholders it was forced to reveal in June that the review centred on a "possible" simplification of its board and corporate structure.

At the time the company insisted that nothing, including a unified board to which a single chief executive would report, had been ruled out. It said details of the review would not be made public until November.

The word in the Square Mile late yesterday was that the company had been tempted to publish the report with today's figures, which should benefit from the high oil price.

Excited by rumours that the report could trigger a "re-rating", Shell shares closed 11.25p higher at 423.75p, outperforming rival BP, which managed to rise just 4.5p to 535.5p.

http://www.guardian.co.uk/business/story/0,3604,1337552,00.html