Record profits as Shell unites under Dutch board
28 October 2004, AMSTERDAM — Oil and fuel giant Royal Dutch/Shell unveiled a 70 percent jump in third quarter profits Thursday and announced plans to merge into one company that will be run from the Netherlands.
28 October 2004
AMSTERDAM — Oil and fuel giant Royal Dutch/Shell unveiled a 70 percent jump in third quarter profits Thursday and announced plans to merge into one company that will be run from the Netherlands.
Shell reported net profit for the third quarter of this year on a current cost of supply basis at EUR 4.4 billion compared with EUR 2.59 billion in the same period last year.
But the company also said another 900 million barrels of reserves might have to be removed from its 2003 accounts.
The long-awaited re-organisation of the management structure of the Anglo-Dutch company is an attempt to restore investor confidence following the highly-damaging disclosures earlier this year that the oil giant had overstated its reserves.
In a joint statement, the boards of the Netherlands-based Royal Dutch and London-based Shell Transport and Trading parent companies said they were proposing to shareholders that the group be unified under "one company, one board and one chief executive".
The new structure will be called Royal Dutch Shell and will have its primary stock market listing in London.
Current group CEO, Dutchman Jeroen van der Veer will remain at the helm of the new company.
About 200 management jobs will be transferred from Britain to the Dutch headquarters.
Royal Dutch owns 60 percent of the assets of the current group of companies and Shell Transport and Trading owns 40 percent. Reflecting this, Royal Dutch shareholders will be offered 60 percent of the issued share capital of the new company Royal Dutch Shell and Shell shareholders will be offered 40 percent.
Investors welcomed Thursday's move and Shell's shares rose by 4 percent in early trading in London.
[Copyright Expatica News 2004]
Subject: Dutch news, Royal Dutch Shell