The EP business, including Shell’s shareholding in the Maui and Kapuni oil fields, accounted for NZ$130.93 million of the profit, slightly down on the NZ$135.61 million of 2002.
Oil Products (retail and commercial fuel and lubricants, along with results from Shell NZ’s chemicals business and dividends from associated companies such as Fulton Hogan and the New Zealand Refining Company) accounted for NZ$63.84 million, down from NZ$82.39 million.
Despite these falls, Shell NZ chairman Paul Zealand described the results as strong. “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.”
The OP profit drop was largely due to losses made on stock holdings and a small reduction in base income, primarily due to the very competitive environment for the retail and commercial businesses and the tight margins the sector operated in.
The EP result highlighted the important contribution Shell NZ’s NZ$3 billion investment in oil and gas production made to overall operations.
“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 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,” Zealand added.