Shell Chemicals '99 profits jump 80% to $813m

10 February 2000 12:39  [Source: ICIS news]

LONDON (CNI)--Stronger markets, lower costs, improving margins, lower taxes and depreciation plus a fourth quarter market surge enabled Royal Dutch/Shell to post a huge jump in chemicals profits for 1999 as the division nears the end of its divestment programme.

Shell Chemicals said adjusted earnings, on a current cost of supply basis but excluding special items, improved 80% to $813m (Euro830m) from $452m in 1998. The improved profits performance came on the back of sales revenues up 5% to just under $12.9bn.

In Q4, the chemicals operations turned around a $37m loss in adjusted earnings in 1998 to profits of $307m this time round. Revenues for the quarter improved 21% to $3.7bn.

At group level, adjusted earnings for the full year increased 38% to almost $7.1bn on total revenues 8% higher at nearly $150bn.

The group also reported $2bn of cost savings for the year and a new target of $4bn in annual savings to be achieved by 2001.

Mark Moody-Stuart, chairman, said "We have achieved cost improvements well ahead of plan".

He added: "In all our businesses, but especially in oil products and chemicals, cost improvements are now really showing up on the bottom line."

By: Patrick Reynolds
+44 208 652 3214

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