THE BUSINESS AND FINANCIAL PERFORMANCE OF ROYAL DUTCH SHELL PLC FROM 1ST JANUARY 2008 TO 31ST DECEMBER 2010.
Royal Dutch Shell plc which is commonly known as Shell is an international oil and gas company that based in Hague, Netherlands and has its principal office in London, United Kingdom. Shell is considered the second largest oil and Gas Company as well as the fifth largest company in the globe which mainly caters in oil and gas distribution. It has been operating in more than 90 countries which produces around 3.1 million barrels of oil per day and has 44,000 service stations in the world. More than that, the company primarily involves in the exploration and production, refining and marketing of petro chemicals, as well as power generation and trading. It also focuses on the renewable energy that includes biofuels, hydrogen, solar and wind power.
(http://en.wikipedia.org/wiki/Royal_Dutch_Shell)
Let us take a look at the business and financial performance of Royal Dutch Shell plc from 1st January 2008 to 31st December 2010. Shell has made greater annual profits, but some of its consumers are not so very happy of the nine fold increase in its oil products and crude oil. In fact, the company just determined to take present profits and really focus on the growth of the revenues of the company within five or ten years now. In addition to that, based on the annual report, Shell suffered a six percent slouch in its daily oil production in 2007 which equivalent to 3.3 million barrels from its 3.5 million barrels of oil production in 2006. This is also the main reason that the company has increased on its oil products and crude oil due to high demand in the market. It also revealed in the 2008 annual report that the Shell Petroleum Development Company, a joint venture with the Nigerian Government was experiencing insufficient amount of investment and resulted to significant impact in oil and crude production in the world market. Still, the company and its business partners were still positive and hopeful that these kinds of business problems would be given solution at the soonest possible time. It was also strongly obvious that in every part of the world, Shell had been suffered by the reduction of its stake in the Sakhalin gas project in Russia, due to its problem negotiation in Moscow. It also magnified by the technical problems encountered by the company in Canada where the group just extracted crude oil from bitumen-rich sands. However, the 2008 annual report showed that Shell had been able to dispose $ 33 billion of oil products and crude oil production. But, it still did its best effort to maintain its production performance within a year and for the years to come. The financial report of the company also disclosed that the Anglo –Dutch oil and gas company has made 60.4 increase in fourth quarter profits. It acquired revenue of $ 8.5 billion from $ 5.3 billion. Nonetheless, most of its earnings came from the jump in crude prices in 2008.
(http://www.usnews.com/articles/business/economy/2008/01/31/shell-rakes-in-85-billion-in-three-months.html?s_cid=rss:shell-rakes-in-85-billion-in-three-months.html)
Subsequently, in 2009, Shell had experienced Amnesty International issue due to the continuation of gas flaring and the company’s slow response to oil spills that happened in Shell which is located in Nigeria. Correspondingly, it was reported in 2010 that Shell had put in staff in all ministries of the Nigerian government. So, Shell Company knew everything about what was really happening in the Nigerian ministries. This was the main reason that the Nigerian government gave an amnesty program to Shell’s infiltration. In this connection, Shell decided to put a global internet-based facility that would report any unpleasant issues towards the company. The company strongly stands for its business principles and code of ethics that aligned with the transparency, integrity and honestly in all Shell’s business dealings and transactions to all its clients in the world. Furthermore, in 2010, Royal Dutch Shell plc had agreed to a $ 12 billion joint venture with Brazilian sugarcane producer named Cosan which aimed to develop sugarcane –based ethanol power. Aside from that, a report also showed that in January 2010, the bureau of customs in the Philippines had claimed 7.34 billion pesos worth of unpaid excise taxes against Filipinas Shell for the reason of importing catalytic cracked gasoline and light catalytic cracked gasoline. Although, Filipinas Shell denied the claim, the company explained that those imports are just raw materials for their production. The company also expressed its plan to close their oil refinery in the Philippines if the issue would not be resolved. Eventually, the Shell Company has funded 100 percent project development with the Qatar government. This is for GTL technologies which are being created by Qatar Petroleum and Shell joint venture. This is now the world’s largest gas-to-liquids (GTL) plant in the globe. This project has been completed at the end of 2010. And, the first GTL production is expected to start in 2011. (http://www.usnews.com/articles/business/economy/2008/01/31/shell-rakes-in-85-billion-in-three-months.html?s_cid=rss:shell-rakes-in-85-billion-in-three-months.html)
References:
(http://en.wikipedia.org/wiki/Royal_Dutch_Shell)
(http://www.usnews.com/articles/business/economy/2008/01/31/shell-rakes-in-85-billion-in-three-months.html?s_cid=rss:shell-rakes-in-85-billion-in-three-months.html)
(http://www.usnews.com/articles/business/economy/2008/01/31/shell-rakes-in-85-billion-in-three-months.html?s_cid=rss:shell-rakes-in-85-billion-in-three-months.html)
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