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Shell shareholders reject emissions target proposal

By Karolin Schaps | THE HAGUE

Royal Dutch Shell (RDSa.L) shareholders on Tuesday widely rejected a proposal by an environmental group calling for the oil company to set and publish annual targets to reduce carbon emissions.

The vote is a setback for climate activists who are increasing pressure on global oil companies, including U.S. firms Exxon Mobil (XOM.N) and Chevron (CVX.N), to become more ambitious in helping combat climate change.

Around 94 percent of Shell shareholders who cast a vote decided against resolution 21, according to final results reported following the company’s annual general meeting (AGM) in The Hague. Roughly 5 percent of voters abstained.

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Get Ready for Peak Oil Demand

By Lynn Cook and Elena Cherney: 

Forecasts for peak oil demand diverge by decades. The Paris-based International Energy Agency argues that demand will grow, albeit slowly, past 2040. And the two biggest U.S. oil companies, Exxon Mobil Corp. and Chevron Corp. , say peak demand isn’t in sight.

But some big European producers predict that a peak could emerge as soon as 2025 or 2030, and they are overhauling their long-term investment plans to diversify away from crude oil. Royal Dutch Shell PLC and Norway’s Statoil SA are placing bigger bets on natural gas and renewables, including wind and solar.

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Shell and BP under fire on boardroom pay policies

Shell and BP under fire on boardroom pay policies

MARK WILLIAMSON: 10 May 2017

CAMPAIGNING group ShareAction has called on shareholders in Royal Dutch Shell and BP to vote down the oil and gas giants’ boardroom pay policies, which it says reward environmentally risky high-carbon strategies.

ShareAction said the remuneration policies of both groups were ‘misaligned with the interests of long-term shareholders’ as they did not do enough to encourage the firms to respond to the move to a low carbon economy.

“A cocktail of policy, technology and market-driven factors are brewing up a storm of uncertainty over the future of fossil fuels. To encourage oil executives to focus on ‘business as usual’ seems an imprudent approach to remuneration,” said Juliet Phillips, campaigns manager at ShareAction.

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ShareAction urges investors to reject BP, Shell pay policies leftright 2/2leftright

Graphic from a Financial Mail On Sunday article published in Sept 2015

Campaign group ShareAction on Tuesday called for investors to oppose remuneration policies at oil majors BP and Royal Dutch Shell as the policies were not tied closely enough to targets to reduce carbon emissions.

ShareAction said this meant both companies’ plans were misaligned with the interests of long-term shareholders.

ShareAction said it had contacted shareholders at both companies and was helping pension savers to write to their funds about voting down the remuneration policies.

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Pressure on BP and Shell over executive pay

Michael Klimes: 08 May 2017

“We recognise that BP have taken action to reduce executive pay and link incentives more closely with carbon reduction targets, which is positive in our view, but we’re looking into whether it goes far enough. We’re more concerned about the lack of similar progress at Shell. It’s important to us that we’re reflecting all our members’ needs as best as possible so we welcome them raising issues with us.”

FULL ARTICLE

New Shell finance boss says North Sea remains important to oil and gas giant

MARK WILLIAMSON: 5 MAY 2017

ROYAL Dutch Shell’s new finance chief has said the company will continue to invest in the North Sea where it is making good returns but declined to rule out selling off more UK assets.

Speaking after Shell posted a 140 per cent increase in first quarter profits, Jessica Uhl said the North Sea remains important to the firm although rationalisation moves will leave it with a much reduced presence in the area.

The oil and gas giant agreed in January to sell a portfolio of mature assets which account for around half its UK production to Chrysaor for up to $3.8 billion.

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Divestment, retooling strategy has paid off, Shell says

Divestment, retooling strategy has paid off, Shell says

By Daniel J. Graeber: May 4, 2017

May 4 (UPI) — A divestment and retooling strategy has paid off considerably with first quarter profits more than doubling on improved oil prices, Royal Dutch Shell said.

Shell joins industry peers like British supermajor BP in declaring a first quarter success. Crude oil prices and market conditions have improved since first quarter 2016, and Shell CEO Ben van Buerden said the debt load was cut in part by a free cash flow of $5.2 billion.

Shell in March announced plans to sell off its entire onshore interests in Gabon to Assala Energy Holdings, part of The Carlyle Group, for $587 million. In the fourth quarter alone, the company unloaded more than $1 billion in assets, in large part from North America. In January, it sold off its interests in a package of assets in the British waters of the North Sea for $3.8 billion.

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Royal Dutch Shell sees profits jump as oil price rises

4 May 2017

The Anglo-Dutch giant said profits on a current cost of supply measure – which strips out price fluctuations – jumped to $3.4bn (£2.6bn) from $1bn last year.

A 55% rise in oil prices in the first quarter of 2017 compared with a year earlier was the main driver of profits.

Shell joins rivals BP, Exxon Mobil, Chevron and Total in reporting better-than-expected results.

More than $1bn in cost savings and budget cuts made over the past three years from cost-cuts and assets sales have also helped to increase cash flow and boost profits.

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Shell’s first-quarter profit more than doubles

By Ron Bousso | LONDON

Royal Dutch Shell reported a sharp rise in net profit on Thursday, beating analyst forecasts and joining its peers as stronger oil prices and improved refining margins boosted revenue after nearly three years of downturn.

A billion dollars in cost savings and budget cuts made over the past three years, as well as around $20 billion of asset sales following the $54 billion acquisition of BG Group last February, also helped increase cash flow and boost profits.

After completing the integration of BG Group in the third quarter of last year, the company and investors are turning their focus to increasing revenue and reducing debt as oil prices appear to recover.

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Oil giants on the road to recovery as profits double

BP and Royal Dutch Shell are expected to report a dramatic recovery in first-quarter profits this week, boosted by oil prices rising from their nadir a year earlier.

BP, which updates the stock market tomorrow, is expected to say that its underlying profits more than doubled to $1.26 billion, from $532 million in the first quarter of 2016, according to a consensus of analysts’ forecasts.

Shell, which reports on Thursday, is expected to announce underlying profits of $3.05 billion, up from the $1.55 billion it made in the same period the year before.

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‘Very impressive’ first quarter results predicted for BP, Shell

‘Very impressive’ first quarter results predicted for BP, Shell

An analyst has said “the numbers are going to look very impressive” for oil majors Shell and BP when they publish their first quarter results this week.

Written by

Iain Armstrong, divisional director at Brewin Dolphin, said most companies could look forward to good year-on-year comparisons, considering the depths oil prices plunged to during the same quarter last year.

Brent crude slipped to below $30 at the start of 2016, having been above $110 in mid-2014.

Shell suffered pre-tax losses of $642million in the first quarter of 2016, while BP recorded pre-tax losses totalling $865million. Both firms achieved multi-billion dollar profits a year earlier.

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Oil price surge set to lead Shell and BP to big profit jumps this week

Jillian Ambrose

Shell and BP are preparing to bask in the benefit of the recent oil price surge with big profit jumps helping to draw a line under years of ferocious cost cutting.

On Tuesday Shell is expected to unveil profit of just above $3bn after a loss of $460m in the same quarter last year, using the oil industry’s standard ‘current cost of supplies’ measure.

Meanwhile BP investors are poised for profits of $1.26bn in Thursday’s results, using the major’s equivalent measure, after reporting $532m in the first quarter of last year.

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Oil Supermajors Dig Way Out of Doldrums as Cash Poised to Surge

by Rakteem Katakey: 26 April 2017, 00:01 BST

Big Oil’s struggle against crude’s collapse is starting to ease, giving some companies enough cash to pay shareholders without piling on more debt.

The world’s five biggest non-state oil producers, known as the supermajors, probably increased cash from operations by a combined 67 percent last quarter from a year earlier, according to HSBC Bank Plc analysts Gordon Gray and Kim Fustier. That may allow some to cover dividends and capital spending without borrowing for the first time since 2012, they said.

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Oil majors BP and Royal Dutch Shell blighted by Citigroup rating downgrades

19 April 2017

In a note to clients, the US bank cut its stance on BP to ‘neutral’ and chopped its rating for Shell to ‘sell’ after scrutinising recent annual reports

Oil majors BP PLC (LON:BP.) and Royal Dutch ShellPLC (LON:RDSB) both fell back this morning under pressure from comment by Citigroup, which downgraded its ratings for both.

In a note to clients, the US bank cut its stance on BP to ‘neutral’ and chopped its rating for Shell to ‘sell’ after scrutinising recent annual reports.

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Why Big Oil wants Trump to stay in Paris climate deal

  @mattmegan5 April 18, 2017: 12:27 PM ET

President Trump could deal the landmark Paris climate agreement a massive blow this week.

The U.S. president is huddling with advisers on Tuesday to explore whether he should yank America from the international accord aimed at slowing global warming.

But some powerful forces — with real skin in the game — are urging Trump not to abandon the 2015 Paris deal brokered among more than 175 nations.

Surprisingly, it’s the big oil companies who are vocally supporting the climate agreement, joining others in the administration that include Secretary of State Rex Tillerson, Ivanka Trump and her husband Jared Kushner.

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Exxon and Shell Join Ivanka Trump to Defend Paris Climate Accord

by Jennifer A Dlouhy 17 April 2017, 19:30 BST

As President Donald Trump contemplates whether to make good on his campaign promise to yank the United States out of the Paris climate accord, an unlikely lobbying force is hoping to talk him out of it: oil and coal producers.

A pro-Paris bloc within the administration has recruited energy companies to lend their support ahead of a high-level White House meeting Tuesday to discuss the global pact to curtail greenhouse-gas emissions, according to two people familiar with the effort who asked not to be identified.

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BP slashes CEO Bob Dudley’s pay packet by 40%

Written by Alan Shields – 06/04/2017 11:55 am

The 40% reduction, revealed today in the supermajor’s 2016 annual report, comes after a number of cost-cutting changes, including a 25 per cent reduction in bonuses handed out for hitting targets.

Dudley’s maximum payout under the firm’s long-term incentive plan is to drop from a seven times to five times his basic annual salary of $1.9million.

Last year, around 59% of shareholders opposed Dudley’s $19.4 million pay and benefits package, including his pension.

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Shell sells New Zealand’s oldest gas field in Taranaki to long term partner

LEIGHTON KEITH: Last updated 16:18, April 6 2017

The head of Venture Taranaki sees the sale of New Zealand’s oldest natural gas field in the region as a positive development.

Shell New Zealand country chairman Rob Jager announced the sale of the onshore Kapuni field, which was discovered in 1959, to Todd Energy on Thursday which is part of the oil giants ongoing review of its operations, announced in December 2015.

The field, 85km south of New Plymouth, was uncovered by a joint venture between Shell, BP and Todd and went into full production in 1969.

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LNG producers turn to trading, risk taking to maintain market share

* Large volume, long-term contracts now “more difficult” -Shell

* JERA, Total sign deal with flexible volumes, spot prices

* Woodside, Shell see big opportunity in small-scale LNG

By Osamu Tsukimori

CHIBA, Japan, April 5 Producers of liquefied natural gas (LNG), having shot themselves in the foot with oversupply, and facing calls for flexibility and greater competition from other fuels are taking on more risk and learning to trade, just like any other commodities dealers.

That’s a big change for a market long dominated by large producers such as Royal Dutch Shell and BP which provide major importers with fixed volumes under multi-decade contracts linked to the price of oil.

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Despite cuts to jobs, spending, oil giants fail to cover costs

  • SARAH KENT
  • The Australian
  • 12:00AM April 4, 2017

The world’s biggest oil companies are struggling just to break even.

Despite billions of dollars in spending cuts and a modest oil price rebound, ExxonMobil, Royal Dutch Shell, Chevron and BP didn’t make enough money last year to cover costs, according to a Wall Street Journal analysis.

To calculate each companies’ free cash flow — the excess cash remaining after costs — the Journal deducted the firm’s dividends and capital expenditures from its cash from operations. All four firms fell short of cash flow for the year, although Exxon said it broke even by its own metrics, which exclude dividends. The analysis also showed that the four companies ended last year with more debt than they began it.

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Oil Companies’ Modest Prize: Breaking Even

By SARAH KENT: April 2, 2017 8:00 a.m. ET

The world’s biggest oil companies are struggling just to break even.

Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn’t make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis.

To calculate each companies’ free cash flow – the excess cash…

ACCESS TO FULL ARTICLE SUBJECT TO WSJ SUBSCRIPTION

As oil prices falter, fears return on BP and Shell dividends

FRIDAY, 31 MARCH 2017

LONDON: As they guided Europe’s largest oil companies through the industry’s worst slump in two decades, the bosses of Royal Dutch Shell Plc and BP Plc had a simple message for investors: we’ll protect the dividend at all costs.

Not everyone is convinced they’ll be able to keep their word.

Even after they raised billions of dollars by cutting costs, selling assets and adding debt, cash is pouring out of both companies in the form of hefty shareholder dividends. Yields on those payments – which fell through 2016 as crude started to recover – have risen this year, typically a signal that investors fear a cut in payouts.

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Big Oil Vows to Keep Dividends Up as Prices Falter

by Rakteem Katakey: 30 March 2017, 00:01 BST 30 March 2017, 11:40 BST

As they guided Europe’s largest oil companies through the industry’s worst slump in two decades, the bosses of Royal Dutch Shell Plc and BP Plc had a simple message for investors: we’ll protect the dividend at all costs.

Not everyone is convinced they’ll be able to keep their word. Even after they raised billions of dollars by cutting costs, selling assets and adding debt, cash is pouring out of both companies in the form of hefty shareholder dividends. Yields on those payments — which fell through 2016 as crude started to recover — have risen this year, typically a signal that investors fear a cut in payouts.

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‘Biggest Oil Discovery In UK Waters This Century’

BY DR. BENNY PEISER, GWPF ON MARCH 27, 2017

Hurricane Energy has made a further oil discovery west of the Shetland Islands days after Royal Dutch Shell and BP won exploration licences in an area the UK is counting on to breathe new life into its struggling oil and gas industry. The latest find adds to a series of successful wells drilled by Hurricane in a geological formation that analysts say looks likely to be the biggest new oil discovery beneath UK waters this century.

FULL ARTICLE

Would you bet on a rapid rise in the oil price?

By Holly Black for the Daily Mail: PUBLISHED: 21:51, 17 March 2017 

Oil stocks took a knock this week as the price of the black stuff slipped to its lowest level since November.

Despite an agreement to cut production by 1.2m barrels a day by the oil cartel Opec being widely adhered to, supply is still outpacing demand.

Now some experts are concerned the deal could be derailed by a surge in the US, where a 55 per cent year-on-year jump in active rigs has driven production levels to record highs. 

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Shell adds hundreds of jobs in new unit focusing on alternative energy

LeAnne Graves

SINGAPORE // Shell has added hundreds of jobs to its New Energies division as it plans to expand further in alternative fuels, wind and solar, a company executive said.

The oil and gas giant created a new division last year that focuses on investing in hydrogen, biofuels, solar and wind. Mark Gainsborough, Shell’s executive vice president of new energies, said the division’s workforce has expanded to more than 200 staff as the company looks to invest in excess of US$1billion per year by 2020.

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BP Rallies on Possibilities of a Takeover by ExxonMobil

Zacks: March 14, 2017

Shares of BP plc BP rallied after a London-based newspaper claimed that ExxonMobil Corporation XOM is looking to place a takeover bid for the British energy group.

A bid for BP cannot be ignored as these rumors about ExxonMobil’s interest have been doing the rounds for years. However, analysts believe that such a deal is unlikely as it does not seem to be a strategic fit.

The merger would create a company too big and complex to be managed. The weak oil price environment has resulted in just one big deal – Royal Dutch Shell plc’s RDS.A $54 billion purchase of BG Group Plc in 2016. Other key oil players in the industry have embarked on smaller acquisitions as they intend to preserve cash and maintain their balance sheets. Though oil prices have increased from the 12-year lows of last year, companies are still uncertain if the recovery is sustainable.

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BP, Shell Investor Wants CEO Pay Policy Change After Revolt

by Rakteem Katakey:2 March 2017

The pay of bosses at Europe’s biggest oil companies is back in focus as shareholders prepare to scrutinize BP Plc’s new policy after rejecting Chief Executive Officer Bob Dudley’s remuneration last year.

Allianz Global Investors, among the top 25 holders of BP and Royal Dutch Shell Plc shares, wants the companies to base top executives’ pay and bonuses on per-share metrics rather than absolute numbers for cash flow and profit, said Rohan Murphy, an analyst at the investment firm. This will help align the management with shareholders’ interests and ensure profitability becomes more important, he said.

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YPF, Shell sign deal for Vaca Muerta pilot project

Argentina’s state-run oil company YPF SA said it reached a preliminary deal with Royal Dutch Shell Plc on Thursday to develop oil and gas assets in the Vaca Muerta shale field, involving a $300 million investment from Shell.

Both companies will take a 50 percent stake in the Bajada de Añelo field to develop a pilot program, which will be operated by Shell, YPF said in a statement. The agreement is subject to approval by provincial authorities, and Shell’s investment will come in two phases, YPF said.

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Can BP plc and Royal Dutch Shell plc survive the coming oil price crash?

By The Motley Fool  Feb 15, 2017

Last year’s surprise OPEC and non-OPEC oil production cuts were supposed to herald a new area of higher energy prices, but it hasn’t really happened. Oil bulls who predicted oil could hit $60 or $70 a barrel will have been disappointed, with the price stalling around $55. If the price can’t rise now, when will it rise? Or could it even crash?

Oil slip

Any further slippage would spell bad news for FTSE 100 giants (LSE: BP) and Royal Dutch Shell(LSE: RDSB). They are banking on a higher oil price to keep the cash flowing, and ensure their dividends are sustainable in the longer run.

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OPEC Output Cuts End Big Oil’s Trading Bonanza

The oil-trading boom that cushioned the profits of Royal Dutch Shell Plc and BP Plc through the price slump of 2015 and early 2016 is over.

BP said on Tuesday it made a “small” loss trading oil in the fourth quarter, while Shell last week said trading profits “flattened” in late 2016. The fall off in trading contributed to worse-than-expected fourth-quarter profits at Europe’s largest oil and gas producers.

Although better known for their oilfields, refineries and gas stations, Shell and BP are the world’s top energy traders, handling about 20 percent of global oil demand between them and dwarfing independent trading houses such as Vitol Group BV, Trafigura Group and Glencore Plc.

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This Is Who Will Pay for Shutting Down North Sea Oil Rigs

Royal Dutch Shell Plc’s $3.8 billion sale of North Sea oil and gas fields creates a model for further transactions in a region where the question of who pays to remove decades-old offshore platforms has been an obstacle for other deals.

Shell’s agreement with Chrysaor Holdings Ltd. included the condition that Europe’s largest oil company covers $1 billion in decommissioning costs, leaving the private-equity-backed explorer with an estimated $2.9 billion of liabilities. Sharing end-of-life costs between buyers and sellers is likely to remain the trend in the North Sea, where the billions of dollars of spending required to remove aging platforms and pipelines over the coming years presents a “real challenge” to deal-making, according to consultant Wood Mackenzie Ltd.

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Shell, BP results preview: Look past top line figures to find positive story, analyst says

Written by Mark Lammey – 30/01/2017 7:48 am

Investors monitoring the fourth quarter results of Shell and BP must look beyond the top line figures to get a good reading of the firms’ vital signs.

Iain Armstrong, divisional director at Brewin Dolphin, said the fourth quarter was notoriously hard to predict as oil and gas deliveries tended to be down.

Mr Armstrong said the two majors’ headline figures could be disappointing, unless strong demand from China gives them a boost.

He also said Shell should be in a position to sell more of its North Sea assets, thanks to improved oil prices and the BG Group acquisition showing signs of fruition.

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Shell is expected to report huge annual profit gains as oil prices recover

Recovering oil prices mean Shell will bag a huge profit compared with last year’s (Source: Getty)

Courtney Goldsmith: 29 Jan 2017

Royal Dutch Shell’s annual profits are expected shoot up following last year’s dramatic 80 per cent decline as oil prices continue to inch up.

The oil giant is forecasted to post a profit of $8.17bn (£6.51bn), more than double its profit of $3.8bn the previous year, the Telegraph reported.

The Anglo-Dutch business is also expected to announce the latest development in its drive to ditch $30bn worth of assets following its £35bn takeover of BG Group. Shell is predicted to report the $3bn sale of its North Sea oil and gas assets – almost half of its total assets worth $7bn in the North Sea – to a private-equity-backed explorer.

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Shell bounces back as oil price enjoys a slick resurgence

Shell bounces back as oil price enjoys a slick resurgence

Jillian Ambrose28 JANUARY 2017 • 7:00PM

Royal Dutch Shell is poised to lead a comeback this week as it reveals annual profits have more than doubled on the back of the recovering oil price.

The Anglo-Dutch oil giant is expected to post bumper profits of $8.17bn (£6.91bn), a huge jump on the $3.8bn it reported at the depths of the market downturn.

Alongside the profit boom, Shell is expected to announce the $3bn sale of its North Sea oil and gas assets to a private-equity-backed explorer.

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29 MORE reasons to sell BP plc and Royal Dutch Shell plc

By The Motley Fool  Jan 26, 2017

Those hoping that OPEC’s decision to finally curtail production at November’s Doha summit would go some way to balancing the oil market would no doubt have gasped at the latest US rig count data on Friday.

According to drill checkers Baker Hughes, the number of oil rigs up and running in the States rose by 29 during the seven days to January 20, taking the total to 551.

This was the largest one-week jump since April 2013 and means that the rig count has risen during 10 of the last 11 weeks. Meanwhile, the number of US rigs in operation now stands at a 14-month peak.

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Shell, BP to reveal Q4 income surges, analyst says

Written by Mark Lammey – 19/01/2017 7:22 am

Oil majors Shell and BP are expected to reveal large increases in fourth quarter earnings next month, an analyst said yesterday.

Biraj Borkhataria of RBC Capital Markets estimated BP would record a net income of $1billion in Q4, up from $200million the previous year.

Mr Borkhataria said the firm’s production would edge up during the quarter due to lower seasonal turnaround and maintenance activities, though downstream margins will be under pressure.

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Oil Major Shell Plans To Shrink As Oil Rebounds

By Nick Cunningham – Jan 03, 2017, 3:07 PM CST

Oil prices are rising and the industry is poised for a rebound, with U.S. shale spending set to soar in 2017. But for Royal Dutch Shell, this year will be much more mundane as years of high spending and ballooning deficits force the Anglo-Dutch oil major to retrench.

Even as the New Year promises to bring a sharp improvement in the finances of oil companies across the world, including Shell, not everyone will approach the rebound in the oil market in the same way. Smaller U.S. shale companies, with assets concentrated in some highly profitable areas such as the Permian, are planning to sharply increase spending and drilling. But the oil majors are less nimble, having assets diversified upstream and downstream, spread out across the globe. They were able to weather the oil price downturn better than their smaller peers, but they respond much more slowly to fluctuations in the oil market. That stability is a feature for many investors looking to avoid volatility, but it also means that 2017 may not bring much excitement from the majors.

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Shell Seeks to Streamline in 2017

…saddled with a mountain of debt…

By SARAH KENT: Jan. 3, 2017 7:00 a.m. ET

LONDON— Royal Dutch Shell PLC has a goal for 2017: Slimming down. The British-Dutch oil-and-gas giant bulked up in February with the roughly $50 billion acquisition of BG Group PLC, giving Shell a dominant position in liquefied natural gas and some of the world’s most prized offshore oil fields in Brazil. It also saddled the company with a mountain of debt—$78 billion at the end of the third quarter—that is higher than peers such as Exxon Mobil Corp.

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BP opts out of Iran deals ahead of Trump hard line on Tehran

by: Andrew Ward, Energy Editor: 2 Jan 2017

BP has opted out of the first wave of agreements to develop oil and gas reserves in Iran after the lifting of international sanctions — setting it apart from its two biggest European rivals Royal Dutch Shell and Total.

However, BP, which has its corporate roots in the Anglo-Persian Oil Company… is taking a more cautious approach ahead of a Donald Trump presidency which threatens renewed diplomatic tensions with Tehran.

FULL FT ARTICLE

Royal Dutch Shell plc and BP Pay Higher Dividends: Here’s Why?

Britain’s decision to exit the European Union came as a shock for many. During the initial phase of Britain’s exit, the pound depreciated tremendously and questions were raised regarding how companies would operate. But now, a few months later, it seems that stakeholders of a few companies greatly benefitted from the move. 

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As mentioned above, the Brexit decision led to a significant decline of the pound against the dollar. Oil and gas companies such as the likes of Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) and BP plc. (ADR) (NYSE:BP) decided to capitalize on the decline by giving out lucrative bonuses to their shareholders. 

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Shell and BP’s UK dividend payments surge on weaker pound

Andrew Ward, Energy Editor

Royal Dutch Shell and BP have delivered a Christmas bonus worth almost £500m to UK shareholders because of the depreciation of the pound against the dollar since the vote to leave the EU.

Both UK oil majors have made quarterly payouts this month that were a fifth higher than a year ago due to their practice of setting dividends in dollars and paying them in sterling.

FULL FT ARTICLE

BP buys, while Shell sells: a recap of recent deal making by the majors

Written by Mark Lammey – 20/12/2016 6:00 am

While Shell has been selling assets to make good on its $30billion divestment plan for 2016-18, BP has flashed the cash with a number of big investments.

Shell said yesterday that it had raised $1.65billion (£1.33billion) in asset sales, while rival oil major BP has revealed plans to invest heavily on African licences.

Shell will make $1.4billion from the sale of a 31.2% stake in refiner Showa Shell Sekiyu to Japan’s Idemitsu Kosan, the firm said yesterday.

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Oil stocks surge, BP and Shell both climb on back of OPEC pact

Written by Reporter – 12/12/2016 1:20 pm

Oil stocks topped the FTSE 100 on Monday after non-Opec producers agreed to curb production to help buoy floundering crude prices.

The UK’s blue chip index was down 0.1% at around 6946.53 points, but Royal Dutch Shell’s ’B’ shares rose 3% and BP jumped 2.4%.

Away from the top tier, Tullow Oil soared 9.6% and Premier Oil surged 9.9%.

Sterling was flat against the dollar at 1.256, but down 0.3% against the euro at 1.187.

Brent crude prices climbed more than 5% to around 57.03 US dollars per barrel (£45.33) in early trading, marking its highest level since July 2015.

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Opec bends the markets

screen-shot-2016-12-03-at-08-16-41By Ed Crooks, December 2, 2016

In 451 CE, the great Roman general Flavius Aetius rallied a motley army of imperial troops and barbarian allies, and halted the advance of Attila’s Huns at the Catalaunian Plains in Gaul, buying the empire some time and temporarily interrupting its long-term decline. This week’s Opec meeting in Vienna had something of the same feel about it.

Opec’s power peaked in the 1970s, and the US shale oil revolution of the past half-decade has threatened to consign the cartel’s influence to history. But by agreeing a deal to cut production on Wednesday, the Opec ministers showed that if they all acted together they could still bend the oil markets to their will, at least for a while.

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Opec cuts neither dead nor alive

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By Ed Crooks November 28, 2016

Opec’s possible production cut is the oil market equivalent of Schrödinger’s cat: neither dead nor alive. When they met in Algiers in late September, Opec ministers agreed the need to reduce output, but left the allocation of the cuts between individual members to be finalised later. If they cannot agree on that, the deal will die. At their meeting in Vienna on Wednesday, the ministers will have to open the box, and we will find out whether or not the agreement is still breathing.

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Shell Tops Ranks Of Ideal Oil, Gas Employers

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By Irina Slav – Nov 15, 2016, 10:10 AM CST

Shell has emerged as the number-one employer in the energy industry, according to a Rigzone survey among 8,400 respondents in more than 100 countries. This is the first survey of this kind since the start of the price slump.

The top 10 of the best employers in the industry, according to the survey, is occupied by Big Oil and Big Oilfield Service, with Chevron at #2, Exxon at #3, and BP at #4. Halliburton was fifth, followed by Schlumberger, Aramco, Total, Baker Hughes, and Weatherford International at #10.

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Shell vs BP: which oil giant should you buy?

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By James Connington14 NOVEMBER 2016 

In the hunt for income‑producing stocks, BP and Royal Dutch Shell are two obvious candidates.

Both have so far kept dividend promises made before the oil price crash, leading to hefty yields: 7pc for BP and 6.7pc at Shell. But which firm is better placed to sustain such attractive dividends?

At first glance, it can look like splitting hairs. Each is prioritising dividend payments, although there is little chance of dividend growth.

Both have taken significant action to cut costs and sell assets in response to the lower oil price.

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Big Oil Looks Past Profit Crunch as Cash Flow Shows Recovery

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By Javier Blas: November 9, 2016

Ask any oil-company accountant, “what’s the difference between income and cash flow?” and they’re likely to say income makes the headlines, cash pays the bills.

It may be glib, but there’s a nub of truth there. Cash generation is the yardstick used to judge a company’s ability to invest and pay dividends, and it’s been growing at the biggest oil producers for three quarters in a row.

Last quarter the world’s largest listed energy companies — Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., Total SA and BP Plc — reported cash from operations of almost $26 billion, up 67 percent from the previous three months and more than double the first-quarter amount, according to data compiled by Bloomberg.

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Royal Dutch Shell: The Comeback Is Here

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Alpha Investor: Sunday Nov 6, 2016

Summary

  • Shell posted a massive turnaround in its bottom line last quarter on the back of an improved production profile, lower costs, and higher price realizations.
  • Shell’s financial improvement is set to continue going forward as upstream oil price realizations will continue to improve on the back of a positive demand-supply environment in the oil industry.
  • Oil demand has exceeded supply by 500,000 bpd this year and the trend will continue as the likes of Russia, Saudi Arabia, and the U.S. continue to reduce output.
  • Shell’s focus on lowering both operating and capital costs will allow it to attain break-even point even if oil prices remain at $50/barrel, which will also improve cash flow.

On Tuesday last week, Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) reported impressive results for the third quarter. In fact, Shell was able to achieve a major turnaround in its bottom line performance, posting a profit of $1.4 billion as compared to a huge loss of $6.1 billion in the same quarter last year. This impressive turnaround in Shell’s bottom line was a result of an increase in production as compared to the prior-year period, driven by the acquisition of BG that led to a favorable production mix in the upstream segment.

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