BusinessCompany NewsShell adjusts oil reserves and profits

Shell adjusts oil reserves and profits

Oil giant Shell has revealed yet another cut in its oil reserves and a cut in profits as it prepares to publish its annual accounts this week, but the results have been approved by its auditors without qualification.

Link: FSA confirms Shell probe

Shell is jointly audited by KPMG and PricewaterhouseCoopers.

Previously, the company said it was removing 4.35 billion barrels from its 2002 reserves; this has now been increased to 4.47 billion barrels, Jeroen van der Veer, chairman of the Committee of managing directors of the Royal Dutch/Shell Group of Companies said today.

Previous financial results were also restated – Shell reported on 5 February that its 2003 net income was $12.7bn (£7.5bn), but yesterday it said this figure had been reduced to $12.5bn. Similarly, the 2001 figure was originally $10.85bn but this has been cut to $10.35bn, while the 2002 figure was increased from $9.4bn to $9.7bn.

Van der Veer said the company had adopted a stricter application of some specific accounting standards.

Shell lied about oil reserves

Financial statements will now be presented in accordance with US Generally Accepted Accounting Principles (GAAP) with a reconciliation to statements presented under Netherlands GAAP.

Shell is scheduled to publish its accounts on 28 May 2004. They will be submitted for approval to the annual general meeting on 28 June.

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