Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) Chief Executive Officer Peter Voser said he has decided to retire in the first half of 2014. Voser has been leading the company since July 2009. Mr. Voser, 55, said he feels it’s time for a change in his lifestyle as he wants to spend more time with his family. Under his leadership, Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) saw rapid growth on several key measures, however its share prices have been almost stagnant as Voser tied up cash in several large projects that didn’t have immediate returns.
The board of Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) is now searching for a successor. Voser, a Swiss national, has reportedly been named as a possible chairman of Roche where he currently serves as non-executive director. Voser joined the British oil giant in 1982, and he started restructuring the company after being appointed as the CEO in 2009. He eliminated 5,000 jobs, cut 150 senior executive positions and consolidated business units in his first year.
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Shell Chairman Jorma Ollila said that Peter Voser’s leadership has been impressive. He reorganized the company, delivered growth and developed a clear forward strategy. Peter Voser delivered some of the biggest projects in the history of the company, including Qatar-based $18 billion Peal gas-to-liquids development.
Despite his solid performance, investors haven’t rewarded the company, partially due to Shell’s high CapEx. Investors were expecting Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B)’s profitability to grow substantially after mega-projects in Canada and Qatar, but the company’s CapEx continued to grow and reached $34 billion in 2012. Share prices were also hurt as low oil prices and financial crisis suppressed the value. Last month, JPMorgan Chase & Co. (NYSE:JPM) cut its rating on the company from “neutral” to “underweight.”
Royal Dutch Shell’s Q1 Earnings Rise 4%
Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B)’s net profits rose 4 percent to $7.95 billion from $7.67 billion in the same period last year. Excluding one-off items, profits for the three months ending March 31 jumped 3 percent to $7.52 billion. That’s much better than analysts’ average estimate of $6.5 billion. Group revenues for the first quarter declined from $119.92 billion last year to $112.81 billion. Oil and gas production increased to 3.56 million barrels a day.
American shares of Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) were up 0.99 percent to $68.39 in early market trading.