Shell eyeing job cuts at Geelong Refinery
Shell’s refusal to guarantee the future of its Geelong refinery has led Australian Workers Union Victorian secretary Ben Davis to warn that the company will axe jobs whether it finds a buyer for the asset or not…
16 Jan, 6:57 AM
Shell’s refusal to guarantee the future of its Geelong refinery has led Australian Workers Union Victorian secretary Ben Davis to warn that the company will axe jobs whether it finds a buyer for the asset or not, The Australian reports.
According to the newspaper, Mr Davis lashes governments for failing to do enough to save the up to 700 jobs he expects could be cut.
“We are expecting heavy losses regardless of the outcome of the sale. The question is when and how many, not if, jobs will be lost,” Mr Davis warned.
The Australian reports Shell refused to answer questions on the future of its refinery in Geelong, which was up for sale last year.
Dutch to Announce Decision on Groningen Gas Soon
AMSTERDAM, Jan 16 (Reuters) – The Dutch government is close to announcing a decision to cut production at the huge Groningen gas field because of concerns about the risk of earth tremors, local media reported on Thursday.
The gas field near Slochteren in the north of the country – one of the world’s largest gas fields – is operated by a joint venture between Royal Dutch Shell and ExxonMobil called Nederlandse Aardolie Maatschappij BV (NAM).
Huge Changes Taking Place At Royal Dutch Shell Plc
The FTSE 100 has risen 53% during the last five years, however, Royal Dutch Shell one of the index’s largest constituents, has underperformed by a staggering 27%. And it’s not just Shell’s shares that have been underperforming. Indeed, according to the Financial Times, around one third of Shell’s assets, are not producing a positive return-on-investment. The assets dragging on Shell’s balance sheet include the company’s $8 billion share in the huge Kashagan oilfield, half of the company’s shale oil business within the United States (worth a total of $24 billion) and numerous downstream assets. Time to do some pruning…
By Rupert Hargreaves – Thursday, 16 January, 2014
The FTSE 100 has risen 53% during the last five years, however,Royal Dutch Shell one of the index’s largest constituents, has underperformed by a staggering 27%.
What’s more, compared to its larger peers, Exxon Mobil andChevron, Shell’s shareholder returns have been less than impressive. In particular, aside from the company’s dividend yield, which is around the same as the industry average, since introducing a script dividend back during 2010 Shell has issued around $4 billion more stock than it has brought back.
It’s not just the company’s shares
And it’s not just Shell’s shares that have been underperforming. Indeed, according to the Financial Times, around one third of Shell’s assets, are not producing a positive return-on-investment. The assets dragging on Shell’s balance sheet include the company’s $8 billion share in the huge Kashagan oilfield, half of the company’s shale oil business within the United States (worth a total of $24 billion) and numerous downstream assets.
However, Shell’s new chief executive, Ben van Beurden is planning on making some changes, which look as if they will change the company for the better. For example, Mr Beurden has drawn up a plan to divest $15 billion worth of assets within the next few years. The idea is that these disposals will allow Shell to shed some inefficient assets, while using the cash raised to fund new projects.
As a matter of fact, the first wave of cuts has already started.
Royal Dutch Shell to sell North Sea fields as it shifts $15bn assets
Since Mr Van Beurden began working alongside outgoing boss Peter Voser at the beginning of the fourth quarter, the company has cancelled plans to build a gas-to-liquids (GTL) plant in the United States, raising investor hopes of a tighter spending regime. Mr Kenney said he expected Shell under Mr Van Beurden to focus on capital discipline, better returns and selling peripheral assets. Mr Van Beurden will face investors on January 30 as the company reports fourth-quarter results, and on March 13 at a planned investor day.
ROYAL Dutch Shell could look to sell $15bn worth of assets over the next two years including some North Sea fields, a media report said yesterday, expanding on its existing guidance that divestments would accelerate this year.
Shell, whose new chief executive Ben van Beurden took over two weeks ago, will sell some of its North Sea oil fields as well as parts of its refining portfolio and some early-stage projects, reported theFinancial Times, citing a person close to the company.
The oil company, the world’s number-three among investor-controlled energy firms, declined to comment on the report.
Shell and its peers in the industry are facing increasing investor pressure to hold down spending as costs rise and prospects for oil prices wane.
The Anglo-Dutch company said in October that it would step up divestments “significantly” in 2014 and 2015 to keep cash flowing in, after forecasting that 2013 capital expenditure would peak at about $45bn. Analysts and bankers say that some of the company’s Nigerian oil blocks plus Shell’s 23.1pc stake in Australian group Woodside Petroleum — worth over $6bn at current prices — could be put on the block.
“It wouldn’t surprise me if Shell were to sell some North Sea assets,” Santander analyst Jason Kenney said.
“In the North Sea, something like 80pc of its production comes from 20pc of its asset base so there’s a long tail of smaller positions.”
Since Mr Van Beurden began working alongside outgoing boss Peter Voser at the beginning of the fourth quarter, the company has cancelled plans to build a gas-to-liquids (GTL) plant in the United States, raising investor hopes of a tighter spending regime.
Mr Kenney said he expected Shell under Mr Van Beurden to focus on capital discipline, better returns and selling peripheral assets.
Mr Van Beurden will face investors on January 30 as the company reports fourth-quarter results, and on March 13 at a planned investor day. (Reuters)
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