Shell announces first quarterly losses in decade
Despite quarterly losses, Shell CEO Jeroen van der Veer remains optimistic.
AMSTERDAM—Royal Dutch Shell has suffered quarterly losses for the first time in ten years. The Anglo-Dutch oil company made a net loss of 2.8 billion dollars. In the same period of 2007 profits were 8.5 billion dollars.
Shell stock values increased 1 percent yesterday to nearly 19 euros in the Amsterdam stock exchange, Euronext.
The losses are primarily attributed to the revaluing of stores and assets, in accordance with the new International Financial Reporting Standards IFRS. This standard requires companies to report its value more accurately. Since oil prices have gone down sharply, the value of stores has also declined.
Nevertheless, CEO Jeroen van der Veer says he is pleased with the results. He says Shell has performed well in the fourth quarter in spite of falling demand for oil and gas. Shell has not made any predictions for 2009. To keep profits up, the company plans to invest heavily in oil and gas extraction.
Radio Netherlands/NRC Handelsblad/Expatica