THE SCOTSMAN: Shell to Announce Record Profits: “Shell will this week announce record profits after sky-high crude oil prices lifted its results performance during an otherwise troubled year.”: “Shell is expected to use Thursday’s results announcement to update investors on developments with its restructuring and on whether it will have to reclassify its reserves for the fifth time after auditors called into question the status of 900 million barrels of oil and gas stocks.” (ShellNews.net) 30 Jan 05
Sun 30 Jan 2005
By Graeme Evans, PA City Editor
Shell will this week announce record profits after sky-high crude oil prices lifted its results performance during an otherwise troubled year.
The energy giant, which has downgraded its reserves estimates by nearly a quarter since January, is expected to report income after tax for 2004 of 17.5 billion US dollars (£9.2bn), a rise of 55% on a year earlier.
With oil prices in New York at 55.17 US dollars a barrel in late October, Shell should have seen a massive 180% jump in fourth quarter profits to 4.82 billion US dollars (£2.5bn), the Observer said.
The profits rush is expected to be mirrored by BP next week, although neither UK company will match the 24 billion US dollars (£13bn) set to be unveiled by US-based Esso owner ExxonMobil tomorrow. Such a figure would represent the largest annual profit made by a public company, the Business newspaper said.
The bumper results come as motorists face pump prices of more than 80p a litre, although the companies point out most of the UK retail price is in tax.
Shell is expected to use Thursday’s results announcement to update investors on developments with its restructuring and on whether it will have to reclassify its reserves for the fifth time after auditors called into question the status of 900 million barrels of oil and gas stocks.
In October, Shell announced plans to merge its UK and Dutch parent companies after nearly 100 years of separate operations.
The move was demanded by investors angered by the reserves crisis, which led to three senior executives being ousted and £82.7 million in fines by US and UK regulators.
Today’s forecasts came on the day that oil cartel Opec warned that oil prices, still hovering near 50 US dollars a barrel, would remain high throughout the spring. It agreed to keep its production ceiling at 27 million barrels a day.
The decision, reached at a meeting of the 11-nation group in Vienna, offers little solace for consumers worried about high fuel prices.
http://business.scotsman.com/latest.cfm?id=4067509