BBC NEWS: Oil surge boosts Shell's earnings: “Shell has sought to rebuild investor confidence after cutting its reserves estimates last year. On a number of occasions last year, Shell admitted that it had overstated its proven reserves, which saw the company being forced to oust its top directors.”: "The results are much better than expected, and we consider them as positive," said Margarita Shevtsova, analyst at Bank Oyens & van Eeghen. (ShellNews.net) 28 April 05
Jeroen van der Veer has sought to rebuild investor confidence
Shell has posted a 28% increase in first-quarter profits on the back of surging oil prices.
The Anglo-Dutch energy giant reported current cost of supply (CCS) earnings of $5.54bn (£2.91bn), beating the forecasts of analysts.
Plans to unify the company's twin board after 100 years remained on track, said chief executive Jeroen van der Veer.
Shell has sought to rebuild investor confidence after cutting its reserves estimates last year.
On a number of occasions last year, Shell admitted that it had overstated its proven reserves, which saw the company being forced to oust its top directors.
Reserves fallout
In a bid to rebuild investor trust, it announced plans in October to merge its Dutch and UK holding companies. Its twin structure had been blamed by investors for a lack of transparency during the reserves crisis.
Currently, Royal Dutch Petroleum holds 60% of the group, while Shell Transport and Trading owns 40%.
Shell said a number of US lawsuits were still pending in relation to the reserves debacle.
Shell's profits jump comes two days after rival BP announced a 29% increase in first-quarter profits, results which were also helped by the strength in oil prices.
Forecourt loss
However, Shell made a loss on petrol sales in the UK during the period as the cost of buying crude oil on the open market surged.
This came as little comfort to campaigners for lower petrol prices.
"These Shell figures will add to the pain of motorists who are already suffering from high petrol pump prices," said Paul Watters, head of roads and transport policy at the AA Motoring Trust.
Shell has a presence in 146 countries and employs about 110,000 people worldwide. It accounts for about 3% of the world's crude oil production.
"The results are much better than expected, and we consider them as positive," said Margarita Shevtsova, analyst at Bank Oyens & van Eeghen.
"It is possible for them to increase their share buy-back programme because they have a strong cash position."
http://news.bbc.co.uk/2/hi/business/4492361.stm
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