Business

Former Shell Employee Lawsuit Unmasks Lucrative U.S. Crude Trading Profits in Court Battle

Financial intricacies surrounding Shell’s expansive oil and gas trading arm have long remained veiled in secrecy. However, a legal battle initiated by a former employee has involuntarily peeled back the curtain, exposing the company’s staggering earnings from its U.S. crude trading ventures.

In documents presented during a lawsuit in a Texas state court, it emerged that Shell’s U.S. crude trading division consistently rakes in approximately $1 billion in profits annually.

Testimony from John Dimech, a former head of Shell’s U.S. crude trading division, offered a rare glimpse into the substantial profits generated by the trading operations, alongside the hefty bonuses awarded to traders.

Dimech, who served as a manager in Shell’s Houston-based crude oil trading group for over a decade, revealed in a deposition last year that the unit typically netted between $950 million to $1 billion annually. Remarkably, this constitutes around 13% to 15% of Shell’s overall pre-tax profits in the United States, as per calculations derived from company filings.

Despite Shell’s silence on the matter, industry analysts stress the significance of disclosing the financial performance of its oil and gas trading desk, considered the largest in the world. The opacity surrounding this aspect of Shell’s business has raised concerns among investors, despite the potential for substantial profits, given the volatile nature of trading, which can sometimes lead to losses.

Traders within Shell’s ranks capitalize on global disparities in oil and gas supply and demand to secure profits through strategic buying and selling. Their compensation often includes hefty bonuses tied to their performance, which can exceed the annual bonuses of top executives, including CEO Wael Sawan.

The legal saga unfolded when former trading manager Eva-Maria Frohn lodged a breach of contract claim against Shell, seeking a substantial sum, including a $6 million bonus for 2021. Frohn contended that a proposed job transfer would result in diminished earnings, rendering her redundant. However, Shell rebutted, asserting that her refusal of the job transfer amounted to resignation.

Last Tuesday, a jury delivered a verdict in favour of Shell, dismissing Frohn’s claim entirely. The outcome marked a victory for Shell, as affirmed by the law firm representing the company, while Frohn’s attorney remained unavailable for comment.

Follow us on:

AriseNews

Recent Posts

Trump Considers Kevin Warsh for Treasury Secretary, Role Of Chairman Of Federal Reserve

Trump is considering Kevin Warsh for Treasury Secretary, with a future possibility of him becoming…

2 hours ago

Hyundai Recalls 145,235 Electrified Vehicles In The US Due To Power Loss Issue

Hyundai has recalled 145,235 electrified vehicles in the US. due to potential loss of drive…

2 hours ago

‘We’re Going to Begin to License Actors’, Says AGN President in A Bid For Standardisation

AGN president Rollas has stressed the need for actor licensing to ensure fair compensation and…

2 hours ago

EU Closes Antitrust Investigation Into Apple’s App Store Rules After Complaint Withdrawal

EU regulators has closed a four-year investigation into Apple's App Store rules after the complainant…

2 hours ago

IPOB Denounces Simon Ekpa As A ‘Destructive Agent’, Clarifies He Was Never A Member Of The Group

IPOB distanced itself from Simon Ekpa, calling him a “destructive agent” who infiltrated and destabilised…

3 hours ago

Biden Calls ICC’s Arrest Warrants For Netanyahu, Gallant ‘Outrageous’

Biden has condemned ICC's arrest warrants for Netanyahu and Gallant, calling them "outrageous" amid global…

3 hours ago