Royal Dutch Shell reported today that fourth quarter profit was at $5.72 billion and net income rose 60% to $8.47 billion from $5.28 billion realized in same period last year but missed the analysts’ estimate of $6.03 billion.

Output was mainly affected by disturbances in Nigeria and the disposal of a stake in Russia.

The company added that profits derived from refining declined 40% and forecasted that the margins will remain weak this year. Shell shared were however unchanged at the close of trade.


1:00PM New York – MBIA stock rebounded in the afternoon trading after comments from the management and lifted market sentiment.

MBIA (MBI: chart) reported fourth quarter net loss of $2.3 billion on write-down in its credit derivatives portfolio.

Fourth quarter revenue for direct premium declined 38% to $262 million from $412 million from a year ago on a sharp decline in structured finance revenues. For the year 2007 direct premium rose 45% to $1.49 billion from a year ago.

Earnings per share in the year fell to a loss of $15.22 from a profit of $5.99 per share. For the quarter earnings per share fell to a loss of $18.61 from a profit of $1.32 a year ago.

The press release explained the losses resulting from CDO and other leveraged loans.

The decline in net income for the year was primarily due to the previously announced pre-tax net loss which amounted to $3.5 billion, or on an after-tax basis, $2.3 billion or $18.04 per share, on financial instruments at fair value (“mark-to-market”) and foreign exchange. Significantly wider spreads and ratings downgrades of securities backing Collateralized Debt Obligations during the fourth quarter adversely affected the mark-to-market valuation of the Company’s insured credit derivatives portfolio. As MBIA previously announced on January 9, 2008, the Company estimates a credit impairment of $200 million included in the pre-tax net loss of $3.5 billion on its insured credit derivatives portfolio for three CDO-squared transactions on which the Company expects to incur actual losses in the future.

Gary Dunton, MBIA Chairman and Chief Executive Officer, said, “We are disappointed in our operating results for the year, as the performance of our insured prime, second-lien mortgage portfolio and three insured CDO-squared transactions led to unprecedented loss reserving and impairment activity. The effect of these reserving and impairment activities on our capital position will be more than offset by the successful completion of our capital plan, which will increase our capital position by well over $2 billion.

We have raised $1.5 billion to date through our $1 billion surplus notes offering and the Warburg Pincus’ $500 million investment in MBIA common stock, which closed yesterday. Additionally, we have a commitment from Warburg Pincus to backstop a $500 million rights offering, and we are considering this and other steps to raise equity.

We believe that these steps, along with reduced capital requirements resulting from slower business growth, will result in our capital position surpassing rating agency Triple-A requirements as currently articulated and will allow us to continue serving the needs of our clients and investors.”



12:30AM New York – U.S. stocks recover from earlier losses after worries related to subprime losses at MBIA hurt the sentiment.

U.S. stocks fell sharply at the opening after MBIA, bond insurer, reported huge losses related to subprime loans and credit derivatives. A rise in unemployment claims also hurt the market sentiment at the opening.

Sharply higher earnings and stable spending through MasterCard payment processing helped market to recover its footing on the hopes that consumer spending is likely to hold up in the coming months.

Earnings from MasterCard (MA: chart) rose to $304 million or $2.26 per share including $1.37 per share gain from the sales of investment securities. Net revenue rose 28% to $1.07 billion and gross dollar volume increased 15.2% and purchase volume gained 16.1%.

Jobless claims at the end of the week ended January 26 increased 69,000 to 375,000, according to the Department Labor. Personal consumption in December rose 0.2% and November spending was revised lower to an increase of 1% from 1.1% rise, according to a report from the Commerce Department.

10:00AM New York, 7:30PM Mumbai – Fiscal deficit in December fell on 9% rise in tax receipts.