Shell net profit almost halves in Q4, must sharpen up says CEO
The new chief executive of Anglo-Dutch oil giant Shell has pledged to sharpen up the company’s performance following a disappointing final quarter in 2013.
Shell booked net profit of $2.9bn in the fourth quarter of 2013, almost half the 2012 Q4 figure of €5.4bn, the company said in a statement.
Turnover in 2013 as a whole was down 12% at $40bn while full year net profit fell 23% to $16.7bn. The news follows a profit warning by Shell two weeks ago.
New chief executive Ben van Beurden said Shell must improve its results, be more efficient with its cash and other resources and boost its operational performance.
‘Our ambitious growth drive in recent years has yielded a step change in Shell’s portfolio and options, with more growth to come, but at the same time we have lost some momentum in operational delivery, and we can sharpen up in a number of areas,’ he said in a statement to investors.
‘The landscape the company expected has changed. Factors such as the worsening security situation in Nigeria in 2013, and delays to non-operated projects in several other countries have altered the outlook,’ Van Beurden said.
Shell has also decided to stop its exploration programme for Alaska in 2014. In addition, the company will speed up the sale of assets to realise $15bn over the next two years.
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