How would this affect Shell ‘s Sarawak ?

31Jan10

The Sunday Times reported ” ROYAL Dutch Shell chief Peter Voser will warn of fresh job cuts this week as he reveals sagging profits at the oil giant. ”

Shell Sarawak has a few months ago warned of an impending cost restructuring in its plant in Sarawak . The Workers Union had been alerted that staff retrenchment maybe necessary . Now with this announcement from Royal Dutch Shell , the question of retrenchment is again mentioned .

The Sunday Times continued :

” Since taking the top job six months ago Voser has cut 5000 staff. He warned over the weekend that the restructuring “may need to go further” as the company battles falling production and a huge cost base.

“As part of that, it may also mean that some more people have to go,” he said.

More detail here :

Analysts expect the group to report a quarterly profit of $US2.9 billion ($3.3bn) on Thursday, a 40 per cent drop over the same period last year.

This would take its annual profit to $US13.4bn, down 57 per cent on the $US31.4bn it made in 2008 when the oil price hit a record of $US147 a barrel.

The results will come in stark contrast to rival BP. Analysts expect it to post a profit of $US4.8bn for the quarter, about 75 per cent better than the same time a year ago.

The jump is largely thanks to the overhaul initiated by Tony Hayward since he took over as chief executive in 2006.

“The question is, can Voser turn it round and get Shell going in the right direction?” said Panmure Gordon analyst Peter Hitchens.

“The underlying business is still in decline.”



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