Shell stands by staff as sales revenue declines
Shell Hong Kong, part of Royal Dutch/Shell Group, expects revenue to drop several per cent this year as the financial turmoil takes its toll, director of Hong Kong and Macau area Robert Young Man-kim said.
It is predicting flat growth next year and an upturn by 2000.
The group, whose parent last month said it would close four of its European head offices and warned of asset write-downs amid languishing demand, did not plan to reduce staff or salaries in Hong Kong.
Mr Young said: 'We have enjoyed growth in revenue as well as profit in the past few years. We have not cut staff and salaries, yet we have been able to keep our costs constant.' Staff level for the existing businesses had been kept at about 300 during these years, he said.
The group expected to see about a 5 per cent fall in petrol sales at its 61 stations in Hong Kong this year, in line with the market, compared with growth of several per cent last year.
Mr Young hoped the launch in the middle of last month of a new fuel, Shell Formula V Power Unleaded, would help sales.
Mr Young said a more aggressive approach had helped the industrial fuel division to secure more sales to the Government and leading clients, providing for several per cent growth this year.
Liquefied petroleum gas business would grow marginally as a new project started this year would more than offset the loss from the shrinking market.
Lubricants would see the biggest fall among all businesses but the slide was within 10 per cent, Mr Young said.
With the opening of the new airport, the number of aviation fuel suppliers increased from seven to 13 and the subsequent pricing competition had led to a decline in revenue of several per cent.
