Shell boosts NZ profit

By Phil Boeyen, ShareChat Business News Editor

Monday 27th August 2001

Oil company Shell has announced a $178.3 million profit on its New Zealand operations.

The figure compares with the previous year's result of $146.1 million and is a 17.4% return on its New Zealand assets.

Shell's retail and commercial oil products businesses have reported a difficult year, with profit down $1.7 million to $62.4 million compared with last year.

The company says the drop reflects the fiercely competitive local marketplace for fuels coupled with the large oil and product price rises over the year.

"While this OP result was disappointing, it was not unexpected, and Shell has been able to maintain market leadership on the retail side of the business through proactive fuel discounting and special promotions to ensure Shell's customers are offered the most competitive prices possible," says Shell NZ boss Ed Johnson.

Mr Johnson says the higher international prices for oil and gas coupled with increased volume demand helped the company's exploration and production division, which increased profit to $113.8 million from last year's $78.1 million.

"This E and P result also reflects the fact that Shell New Zealand is now the country's largest and most efficient producer and marketer of oil and gas," says Mr Johnson.

"With the Fletcher Challenge Energy acquisition now completed, Shell's E and P business is set for a further boost and we expect E and P's future performance to be even better as planned new investment progressively comes into production."

Mr Johnson says the company's overall excellent financial result was due in large part to its diversified portfolio of interests in New Zealand, which include upstream oil and gas, chemicals, forestry and equity investments in a range of other companies from Road Construction to Fast Food.

This year the company has taken up the new-style triple bottom line reporting, which also audits such factors as a company's contribution to the environment and employment.

"Shell is committed to Triple Bottom Line reporting," says Mr Johnson.

"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."

Comments from our readers

No comments yet