Shell New Zealand 2001 profit announcement

Published: Mon 16 Sep 2002 03:29 PM
Shell New Zealand 2001 profit announcement
The Shell New Zealand group of companies announced an after tax profit of NZ $200.48 million for the 2001 year (2000: $178.3 million).
Shell's combined retail and commercial oil products (OP) businesses had a difficult year in 2001, reflecting the fiercely competitive local marketplace for fuels coupled with the large oil and product price rises experienced over the year. This competitive environment resulted in considerably reduced product margins, so that the OP business produced a net profit of $31.155 million in 2001, some 50% less than that of 2000 ($62.4 million).
Shell's exploration and production business (EP) contributed a profit of $172.35 million, well up on the 2000 result ($113.8 million).
Shell New Zealand Country Chairman Lloyd Taylor said that the improved EP result reflected in large part the contribution from upstream businesses acquired with Fletcher Challenge Energy (FCE) on 23 March 2001.
However, Dr Taylor said that direct comparison with the 2000 EP result was not straighforward, due to the complex nature of the FCE transaction, and the differing balance dates for the Shell and FCE entities. The result included one off costs associated with integration and some of the impacts of divestment transactions.
"This EP result is satisfactory, and reflects the costs associated with the acquisition of Fletcher Challenge Energy, which has seen Shell New Zealand become the country's largest and most efficient producer and marketer of oil and gas," Dr Lloyd Taylor said.
"While the OP result was disappointing, it was not unexpected and
mirrors the difficult downstream business conditions that have prevailed globally in the last eighteen months. Despite the difficult environment, Shell has been able to maintain market leadership on the retail side of the business through proactive fuel discounting initiatives and special promotions and benefits, including Fly Buys. This has ensured that Shell's customers are receiving the most competitive and compelling value proposition."
Dr Taylor said Shell New Zealand was releasing its second Sustainable Development Report today, which for the first time has been independently verified.
"Shell is committed to sustainable development and part of that
commitment is reporting on our progress. We are not just interested in making a profit, although that is critically important for today and the future. We also have a committed focus on valuing people and our planet on an equal footing with the financial wealth we create as a New Zealand commercial enterprise," Dr Taylor said.
Shell companies in New Zealand are all wholly owned by the Royal
Dutch/Shell Group of Companies, based in Holland and the United Kingdom.
As such Shell is not required to make a public announcement of profits, but does so in the interests of transparency.

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