…the company’s profits plummeted 70% from last year to $1.77 billion…
Sarfaraz A. Khan: Sunday, Dec 6, 2015
Summary
- The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
- Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
- But Shell is generating enough cash from operations and asset sales to cover its spending.
- More importantly, Shell could be the only oil major that emerges even bigger from the downturn.
The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant.