Shell ups profits targets in drive to lead sector
Thursday 02 October 1997
According to leading oil analysts the company has launched an ambitious drive to become the industry's top performer, following growing criticism at its failure spend some of its pounds 8bn cash pile. Senior executives elaborated on the strategy during briefings with analysts in Thailand, Malaysia and Singapore last week, in the latest sign of Shell's increasing openness.
The company said it was determined to raise the rate of return on its capital from 12 per cent to at least 15 per cent in each of its individual operating divisions. Last year Shell struggled to reach the 12 per cent target, compared with BP's returns of around 19 per cent.
Fergus MacLeod, oil analyst with NatWest Securities, said: "Everyone from country chairman to refinery managers proved beyond reasonable doubt that there is a company wide drive to improve returns to at least 15 per cent."
He said the drive could boost Shell's profits by $1bn a year. "Major cultural change is under way ... and almost all expressed confidence that better financial performance will result."
Details of the briefings emerged a day after Shell announced a restructuring of its European petrol business, cutting 3,000 jobs and warning it could leave some markets altogether if profits did not improve. The company has also announced two big deals in the space of a month, to buy out its joint venture partner in a European chemicals business and to take over a Texas oil pipeline.
A Shell spokesman said the company had yet to raise the overall profit target for the whole group, though individual businesses were being set a 15 per cent target.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 Chelsea victory parade: Chelsea mocked on Twitter as 'tens of fans' pack the streets of London
- 3 US warned by Chinese media to stop meddling or 'war will be inevitable'
- 4 Woman, 21, dies after taking contraceptive pill that 'caused fatal blood clot'
- 5 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
US warned by Chinese media to stop meddling or 'war will be inevitable'
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...