Shell targets 15% ROACE from chem, E&P and oil businesses

17 December 2001 12:58  [Source: ICIS news]

LONDON (CNI)--Anglo-Dutch oil giant Shell said Monday it is targeting a 15% return on average capital employed (ROACE) for its established businesses including chemicals.

It also announced that it will reduce unit operating costs by 3% each year for the next two years in its established businesses, which also include exploration and production (E&P) and oil. This will contribute to a total pre-tax benefit from operating cost improvements of around $500m (Euro554m) a year.

The group said reference conditions - the baseline for tracking performance - remain conservative. It added that chemicals faced the worst environment for 20 years - "the best thing we can say about the future is that it remains uncertain".

Judy Boynton, Shell’s director of finance, said the group’s chemicals business remained stable despite "extreme operating conditions".

By: Nadia Elghamry
+44 208 652 3214

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