Shell New Zealand Releases 2003 Profit Results

SHELL NEW ZEALAND

Media Statement
For Immediate Release
16 August 2004

Shell New Zealand Releases 2003 Profit Results

Shell New Zealand continues its commitment to open and honest dialogue with the New Zealand public today, with the release of its financial results for 2003.

The combined profit of Shell’s businesses in New Zealand was $190 . 729 million, down on the $220.009 million record profit in 2002.

Of this, the Oil Products (OP) business (includes all retail and commercial fuel and lubricants activities along with results form Shell NZ’s chemicals business, and dividends from associated companies such as Fulton Hogan and the New Zealand Refining Company) accounted for $63,835 million, down from the $82,391 million these activities contributed in 2002.

The Exploration and Production (EP) business (including Shell’s shareholding in the Maui and Kapuni gas and oil fields) accounted for $130,930 million of the profit, slightly down on the $135,612 million recorded in 2002.

Shell New Zealand Chairman Paul Zealand said the result was a pleasing one for Shell.

“As New Zealand’s only fully integrated oil company, we are delighted to have produced such a strong return for our shareholders, the Royal Dutch/Shell Group.

“For our OP business, the fall in profit is largely due to losses made on stock holdings along with a small reduction in base income, primarily as a result of the very competitive environment in both our retail and commercial businesses, and the tight margins this sector operates within.

The EP result highlights the important contribution that Shell’s $3 billion investment in oil and gas production makes to our overall operations in New Zealand. 2003 saw the final integration of Shell’s EP business, following the acquisition of Fletcher Challenge Energy in 2001.

“The Royal Dutch/Shell Group has over one million shareholders around the world, and Shell in New Zealand, along with the other companies in the Group, have a responsibility to them to run efficient, effective businesses that deliver profits.

“Shell New Zealand has done just that in 2003, and this result is a tribute to Shell’s New Zealand workforce, who have worked under pressure in difficult trading environments, particularly in the downstream business, to come up with a very satisfactory result for 2003,” Mr Zealand said.

Shell New Zealand’s financial year runs from 1 January to 31 December, in line with the financial year of the Royal Dutch/Shell Group.

ENDS

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