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Posts under ‘Simon Henry’

Shell investors urged to rebel over excessive executive pay

Ben Van Beurden’s total pay and perks for his role as Royal Dutch Shell’s chief executive, rose to €8.6 million for last yearERIC PIERMONT/AFP/GETTY IMAGES

Shareholders in Royal Dutch Shell have been urged to oppose “excessive” executive pay after the oil giant awarded its boss a 54 per cent pay rise.

Pirc, the investor group, criticised Shell’s remuneration report, which showed that Ben van Beurden’s total pay and perks rose to €8.6 million for 2016, up from €5.6 million in 2015. Pirc said this was “excessive at 453 per cent of salary” and urged shareholders to vote against the report at the annual general meeting on May 23.

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Shell corruption probe: Top executives knew part of £1.3bn Nigerian oil deal would go to convicted money launderer

In a huge u-turn, the company has now admitted it knew Mr Etete was involved.

Top executives at Shell knew that money they paid as part of a $1.3bn deal for a huge Nigerian oil field would end up in the hands of a convicted money launderer who awarded the asset to his own company when he was oil minister of the country.

Emails seen by The Independent and reported by anti-corruption campaign groups Global Witness and Finance Uncovered, show senior bosses at the UK’s biggest company had been informed that hundreds of millions of dollars could flow through former oil minister Dan Etete to be paid in bribes to former President Goodluck Jonathan and other political figures.

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Shell rocked by corruption claims after negotiating with money launderer during £1bn Nigerian oil field purchase


Current chief executive Ben Van Beurden has also been caught up in the investigation. He was not in position when the deal was complete, but after Shell’s Hague offices were raided in February last year, Dutch authorities wire-tapped a call between Van Beurden and then chief financial officer Simon Henry in which Van Beurden allegedly urged Henry not to disclose the raid to shareholders.

Wiretap: After Shell’s headquarters in the Hague were raided in February last year, ceo  Ben Van Beurden urged chief financial officer Simon Henry not to disclose the raid to shareholders

By Sabah Meddings For The Daily Mail

Shell was last night accused of taking part in ‘one of the worst corruption scandals the industry has ever seen’ after buying an oil field in Nigeria.

The Anglo-Dutch giant joined forces with Italian rival Eni to acquire the site off the coast of the West African country for £1billion – giving it access to 9bn barrels of oil, worth nearly half a trillion dollars at today’s prices. But leaked documents suggest it knew much of this cash would fall into the hands of a convicted money launderer and be used to bribe government officials.

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New evidence in Nigeria Corruption Probe: Shell Bosses bribed the oil-minister

Published: Monday, 10 April 2017 18:54

When Shell was buying the OPL 245 oil field in Nigeria for US$1.3 billion, its executives knew that 1.1 billion will land in the pocket of former petroleum minister and convicted money launderer, Dan Etete, media reported Monday.

The BBC claims to have seen emails obtained by anti-corruption charities, Global Witness and Finance Uncovered, which say that Shell representatives were negotiating with Etete for a year before the deal was finalized.

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Leaked emails increase pressure on Shell over Nigerian oil deal

A trove of internal Shell emails seen by the Financial Times and dated between 2008 and 2010 leave no doubt that senior people within the company knew that most of the $1.3bn paid together with Eni for OPL 245 was destined for Malabu, and that much of the money would end up with Mr Etete and associates. Shell had previously said only that the money was paid to a Nigerian government escrow account.

In the intercepted phone call with Mr Henry, Mr van Beurden acknowledged Shell’s own investigation uncovered “unhelpful” and “stupid” email exchanges among former UK intelligence agents hired by the company to help negotiate the OPL 245 deal.

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Recorded call reveals Shell worried Nigerian oil deal could lead to U.S. probe

Top executives at Royal Dutch Shell (RDS.A, RDS.B) last year were worried that a controversial Nigerian oil deal may have violated an agreement with the U.S. Justice Department and would prompt an investigation, according to a recorded phone call between CEO Ben van Beurden and Simon Henry, the company’s CFO at the time.

In the call, van Beurden said he was worried that Shell’s own investigators had discovered internal emails that could cast the company in a negative light and widen the investigation by drawing in U.S. authorities; the call was recorded and has now been made public.

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Shell Knew Of Bribe Payments To Nigerian Official, Global Witness Report Alleges

A recent publication of leaked emails has found evidence that Shell knowingly bribed ministers in the Nigerian government. Global Witness, an anti-corruption NGO, described the episode as “one of the worst corruption scandals in the history of the oil industry”.

The affair relates to OLP 245, an offshore oilfield in Nigerian waters that is estimated to hold nine billion barrels of oil, valued at over half a trillion dollars at current prices.

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Recording Puts Shell’s Nigerian Oil Deal Under a Harsh Light

The investigators were “quite forceful and brusque” and “rattled a few people,” Mr. van Beurden told the finance chief at the time, Simon Henry, when Mr. Henry returned his call. But Mr. van Beurden said he was also worried about something else: Shell’s own investigators had discovered internal emails that could cast the company in an even more negative light and widen the investigation by drawing in the United States law enforcement authorities.

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Eni, Shell deny wrongdoing in Nigeria after allegations of improper payment

Oil majors Royal Dutch Shell (RDSa.L) and Eni (ENI.MI) reiterated on Monday that neither they nor their personnel had been involved in any wrongdoing in Nigeria, including improper payments to Nigerian officials.

The comments follow media reports alleging how hundreds of millions of dollars from the two companies were used for illicit payments.

A joint investigation by BuzzFeed News and Italian newspaper Il Sole 24 Ore on Sunday claims to show transactions worth $1.3 billion made in 2010-2011 that Shell and Eni paid to acquire an exploration licence for an offshore oil block known as OPL 245.

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What Shell CEO Told Colleague About $1.3 Billion OPL 245 Scandal

What Shell CEO Told Colleague About $1.3 Billion OPL 245 Scandal

Mr. Van Beurden is heard on the intercept warning Henry not to volunteer any information that is not requested if approached by the police and discussing the ramifications for the company’s share price.

By Lionel Faull, Ted Jeory and Nick Mathiason

The boss of one of the world’s biggest corporations was placed under secret surveillance as part of a pan-European corruption investigation into the way the firm paid $1.3 billion for an oil block in Nigeria, explosive documents leaked to Finance Uncovered reveal.

The leak includes a recording of a wiretapped telephone conversation between Shell’s chief executive, Ben van Beurden, and his then chief financial officer, Simon Henry, in the immediate aftermath of a raid by Dutch financial police on the corporation’s headquarters in The Hague.

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Shell and Toyota Partner on California Fueling Stations for Hydrogen Cars

By Craig Trudell , Yuki Hagiwara , and John Lippert

20 February 2017, 20:30 GMT: 21 February 2017, 00:21 GMT

Royal Dutch Shell Plc will build seven fueling stations for hydrogen cars in California through a partnership with Toyota Motor Corp., laying down their latest bet on the demise of the internal-combustion engine.

The stations will nudge the state closer to its goal of having 100 retail sites by 2024 where hydrogen fuel-cell vehicles can fill up. The California Energy Commission is considering $16.4 million in grants toward the stations, with Shell and Toyota contributing $11.4 million.

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Rio Tinto recruits three energy executives to board

Euronews/Reuters: Rio Tinto recruits three energy executives to board, including Simon Henry

By Karolin Schaps: REUTERS 10/02/201

LONDON (Reuters) – Rio Tinto has appointed three former senior managers from the energy industry to its board as non-executive directors, including Shell’s departing CFO Simon Henry, the mining company said on Friday.

Henry, who is stepping down as Chief Financial Officer at Shell after seven years on March 9, will join Rio Tinto on July 1. Former Centrica chief executive Sam Laidlaw and ex-Sasol CEO David Constable will take up their non-executive posts immediately, Rio Tinto said.

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Reefs, not removal, could be the future for rigs, says Shell

 

Emily Gosden, Energy Editor: 

Royal Dutch Shell’s chief financial officer has criticised rules requiring old oil and gas platforms to be removed from the North Sea, claiming that they will result in taxpayers “spending money unnecessarily”.

Simon Henry said that regulations enshrined in the international Ospar convention should be reviewed because they “could actually create more of an environmental issue by disturbing certain things in the removal process” and should be reviewed.

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Shell plans Australian solar plants that can switch to gas

MATT CHAMBERS Resources reporter: Melbourne4 Feb 2017

Anglo-Dutch oil giant Shell is looking to invest in Australian solar plants that can switch to gas when needed to deliver baseload power supply as debate rages over renewable energy security in the wake of South Australia’s ­crippling power outages.

Shell, which is Australia’s biggest LNG exporter and one of the world’s largest oil companies, has revealed that Australia was one of three global locations, along with Oman and Brunei, where it was studying pairing renewable energy with gas, after last year flagging “new energies” would be a potential major source of growth for the fossil fuel company beyond 2020.

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Shell says renegotiating Permian JV with Anadarko

By Ron Bousso | LONDON

Royal Dutch Shell (RDSa.L) and Anadarko Petroleum (APC.N) are renegotiating their five-year-old joint venture in the Permian shale basin in Texas, Shell Chief Financial Officer Simon Henry said on Thursday.

The 50-50 JV in the Delaware basin, which expires this year, will likely see the operatorship of the asset “consolidated in a different way”, Henry said in an earnings presentation to analysts.

Henry also said that Shell’s position in the Haynesville basin to the east of the Permian, which it acquired through its takeover of BG Group last year, “won’t necessarily stay in our portfolio.”

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Shell To Sell Another $5B In Assets, Misses Profit Expectations

By Tsvetana Paraskova – Feb 02, 2017, 3:03 PM CST

Royal Dutch Shell (NYSE:RDS.A) is making “significant progress” on selling another US$5 billion worth of assets, chief financial officer Simon Henry said on Thursday after the oil supermajor reported 2016 profits below analyst expectations.

Shell’s current cost of supplies (CCS) – a key measure comparable with net income – came in at US$1.8 billion, excluding identified items, compared with US$1.6 billion for the fourth quarter 2015, the company said today. Full-year 2016 CCS earnings attributable to shareholders excluding identified items dropped to US$7.2 billion from US$11.4 billion in 2015.

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Shell nears deals to sell $5 bln of assets -CFO

By Karolin Schaps and Ron Bousso | LONDON

Royal Dutch Shell (RDSa.L) is close to selling assets totaling $5 billion to cut debt following its acquisition of BG Group, the oil major said on Thursday as it reported its lowest full-year earnings in more than a decade.

Dealmaking in the oil and gas sector has been muted for more than two years due to collapsing oil prices, but as crude prices recover buyers and sellers are starting to agree on price tags.

For Shell, disposals of $3 billion in the fourth quarter helped shave $4.5 billion off its net debt and increase cashflow by 8 percent in the last three months of the year, Europe’s largest oil and gas company said.

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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 boss Simon Henry cashed in £1m days before he suddenly resigned

Shell boss Simon Henry 

IMAGES FROM DAILY MAIL ARTICLES PUBLISHED FRIDAY 16 DECEMBER 2016.

ALSO PUBLISHED BY THE DAILY MAIL ON THE SAME DATE

Suspicion over Simon Henry departure, a cover-up by Shell?

“Shell finance boss Simon Henry sold stock worth £1m just days before he suddenly left the firm. Shell would not say why the £3.2 million-a-year boss was leaving…” (From a Daily Mail article by Rachel Millard) 

Posted on our Shell Blog Friday 16 December 2016

SMELLS: Interesting comment published in the Daily Mail today Friday, by City Editor Alex Brummer under the heading: “Shell game”:

“EXTRAVAGANT praise by Shell chairman Charles Holliday for departing finance director Simon Henry only fuels suspicion the Anglo-Dutch oil major is not revealing all.”

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Shell finance boss tipped to take over the top job cashed in stock worth £1m days before he suddenly quit

By Rachel Millard For The Daily Mail: 21:58, 15 December 2016 

A finance boss at Royal Dutch Shell who was tipped to take over the top job has suddenly left – just days after he sold stock worth £1million.

Credited with leading the firm’s £41billion takeover of oil and gas group BG last year, Simon Henry was a key lieutenant of chief executive Ben van Beurden.

But the 55-year-old’s departure was announced yesterday to the shock of the markets. Relatively unknown internal finance executive Jessica Uhl has been appointed in his place.

It emerged Henry sold more than £1million of shares on December 1, within 24 hours of the historic Opec deal to cut production that then sent the price of oil soaring.

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Shell picks American former Enron exec for CFO

Royal Dutch Shell executive Jessica Uhl has been elevated to chief financial officer for global operations.

Uhl, the current executive vice president of finance for integrated gas, begins her new post in March and will continue to work at The Hague.  She will replace CFO Simon Henry, who will assist with the transition through June.

Before joining Shell in 2004, Uhl was a director of project development and later a vice president of corporate development for Enron in Houston and Panama.

Uhl also will serve as an executive director of Shell and sit on the executive committee. Shell CEO Ben van Beurden praised Uhl’s promotion.

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Shell finance chief Simon Henry to leave after 30 years with the oil major

Caitlin Morrison deputy digital editor at City A.M: Thursday 15 December 2016 8:47am

Royal Dutch Shell announced today that finance chief Simon Henry will step down in March 2017, to be replaced by Jessica Uhl.

Henry – who was appointed to the Lloyds Bank board in 2014 – has been with Shell for over 30 years, and has been chief financial officer for seven.

“I have been privileged to spend the past 34 years working with great colleagues, in a great company,” said Henry.

“Together we have made a difference in an industry that really matters to so many people around the world. I wish Jessica every success in the role, and am confident that she and Shell will deliver a world class investment, in the most responsible and sustainable way.”

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Shell to replace CFO Simon Henry in March

Royal Dutch Shell (RDSa.L) will replace Simon Henry as chief financial officer on March 9, 2017 with Jessica Uhl, a financial executive in Shell’s gas business, the company said on Thursday.

Henry will remain available to the company until June 30, 2017, Shell said. It gave no reason for his departure.

“Jessica combines an external perspective with broad Shell experience and is a highly regarded executive,” Shell Chief Executive Ben van Beurden said.

Uhl joined Shell in 2004 and was previously employed at Enron and Citibank in the U.S. and Panama.

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Royal Dutch Shell CFO Simon Henry steps down

By MarketWatch

Published: Dec 15, 2016 2:21 a.m. ET

LONDON–Royal Dutch Shell PLC’s RDSA Chief Financial Officer Simon Henry is stepping down next year and will be replaced by Jessica Uhl, who is currently executive vice president finance for the integrated gas business.

Mr. Henry will remain on the board until March 9 and remain available to assist with the transition until June, Shell said Thursday.

Write to Rory Gallivan at [email protected]; Twitter: @RoryGallivan

SOURCE

Shell finance chief takes some chips off the table

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Royal Dutch Shell’s finance boss took advantage of the jump in the company’s share price immediately following OPEC’s decision to cut its output to sell some of his holdings in the oil producer.

According to a statement issued by the company, Simon Henry unloaded 50,000 B-shares at an individual price of 2163p, allowing him to pocket £1,081,500.

On 11 November, and in remarks to The Wall Street Journal, the firm´s executive vice president for deep-water, Wael Sawan, said Shell would invest $10bn more in the country, on top of the $30bn already deployed in South America´s largest economy.

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Market keeps watching brief on Shell’s Woodside stake

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by Sarah Thompson Anthony Macdonald Joyce Moullakis

With December’s silly season now underway, brokers are left with precious few trading days to launch any significant placements and block trades.

But one stake remains at the top of every firm’s watchlist: Shell’s 13.3 per cent stake in Woodside Petroleum.

Firstly, there’s a motivated seller. The oil giant’s chief financial officer Simon Henry classified the $3.4 billion stake as “available for sale” when he informed investors in August of a change in how Shell classifies its stake in the Australian oil and gas producer.

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Shell’s debts rise as it misses asset-sales target

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PUBLISHED NOV 19, 2016, 5:00 AM SGT

LONDON • Royal Dutch Shell is more than US$4 billion (S$5.71 billion) short of its asset-sales target for the year, prompting credit ratings agencies to warn that its record debt will not start shrinking soon enough.

Shell piled up borrowings following its biggest acquisition, the purchase of BG Group, and needs to hit disposal targets to help pay for it and stave off rating reviews, according to the agencies. The company sold US$1.7 billion of assets in the first nine months of this year, according to a Nov 1 statement, well short of its US$6 billion to US$8 billion guidance.

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Hold the champagne

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screen-shot-2016-11-03-at-14-50-16By Ed Crooks, November 4, 2016

If you are looking forward to the oil industry recovery, you shouldn’t break out the champagne just yet.

Over the past eight days, the world’s largest listed oil companies have released third quarter earnings reports. From all of them, the message was that while the worst might be over, they were still facing a long hard road ahead.

The snap reactions from the stock market were mixed: positive for  ChevronRoyal Dutch ShellTotal and ConocoPhillips; negative for ExxonMobilBPEniStatoilPetrochina and Cnooc.

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No credibility in Shell Peak Oil Forecasts, says John Donovan

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screen-shot-2016-11-03-at-14-50-16A number of articles have been published today reporting a forecast by Shell CFO Simon Henry, that “Peak Oil” could be just 5 years away. e.g.

Oil Demand Peak Could Be Just 5 Years Away: Shell

Oil falls after Shell warns peak demand ‘five years off’

Shell makes a jaw-dropping statement on peak oil

It is, therefore, an appropriate moment to look back on a directly related forecast made in January 2008, by the then Shell CEO Jeroen van der Veer. He forecast that demand for oil and gas would outstrip supply within 7 years, meaning by 2015. The hopelessly inaccurate prediction was based on an assessment from the Shell Scenarios team. No doubt many of the same geniuses now advising Simon Henry.

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Shell selling two assets in U.S. Permian basin: CFO

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Royal Dutch Shell is selling two small land packages in the U.S. Permian Basin but will also consider acquisitions in the oil-rich West Texas province, Chief Financial Officer Simon Henry said on Tuesday.

Shell, which is in the midst of a $30 billion disposal program to pay for its $54 billion acquisition of BG Group, will remain a key future engine of growth, Henry said on an analysts call.

“The Permian is the crown jewel. Not just in terms of value and quality of the asset but also the capability that is being developed there,” he said.

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Royal Dutch Shell’s Q3 Earnings: Good, but Not As Great As Some Have Declared

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Tyler Crowe: (TMFDirtyBird): Nov 1, 2016

It seems that now when an oil company’s earnings increase, financial pundits say it “rocketed” upwards or some other hyperbole like that. Sure, Royal Dutch Shell’s (NYSE:RDS-A) (NYSE:RDS-B) third-quarter results were better than the past few quarters thanks to the BG Group deal, but the devil’s in the details. Let’s take a look at the company’s results and why they improved, as well as peek into Shell’s near-term future as 2017 comes into focus. 

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Shell’s Record BG Deal Starts to Pay Off as Production Surges

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screen-shot-2016-11-01-at-16-01-19By Rakteem Katakey: November 1, 2016

Royal Dutch Shell Plc’s biggest takeover, the subject of intense investor scrutiny during crude’s collapse, is starting to pay off as Europe’s largest oil company chalks up its highest profit in five quarters.

The cash now generated by BG Group Plc — acquired by Shell for $54 billion in February — outstrips its spending, while production has risen by about a third in two years, Shell Chief Financial Officer Simon Henry said Tuesday. The integration of its assets has been completed “well ahead of time,” he said.

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Royal Dutch Shell Plc Third quarter 2016 summary of unaudited results

THE HAGUE, The Netherlands, Nov. 1, 2016 /PRNewswire:  Dutch Shell plc: 3rd Quarter 2016 Unaudited Results

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  • Royal Dutch Shell’s third quarter 2016 CCS earnings attributable to shareholders were $1.4 billion compared with a loss of $6.1 billion for the same quarter a year ago. 
  • Third quarter 2016 CCS earnings attributable to shareholders excluding identified items were $2.8 billion compared with $2.4 billion for the third quarter 2015, an increase of 18%. 
  • Compared with the third quarter 2015, CCS earnings attributable to shareholders excluding identified items benefited from increased production volumes mainly from BG assets, lower operating expenses more than offsetting the increase related to the consolidation of BG, and lower well write-offs. This was partly offset by the decline in oil, gas and LNG prices, and increased depreciation mainly resulting from the BG acquisition, and weaker refining industry conditions.
  • Third quarter 2016 basic CCS earnings per share excluding identified items decreased by 8% versus the third quarter 2015.
  • Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.
  • Total dividends distributed to shareholders in the quarter were $3.8 billion, of which $1.1 billion were settled by issuing 44.1 million A shares under the Scrip Dividend Programme.
  • Gearing at the end of the third quarter 2016 was 29.2% versus 12.7% at the end of the third quarter 2015. This increase mainly reflects the impact of the acquisition of BG.
  • A third quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell delivered better results this quarter, reflecting strong operational and cost performance. But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.

Our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case at all points in the oil-price cycle, through stronger returns and improved free cash flow per share. We are making good progress towards this aim in spite of current challenging market conditions.

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This Billionaire Just Joined The Race For A Major Shell North Sea Oilfield

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By Irina Slav – Oct 17, 2016, 8:55 AM CDT

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Jim Ratcliffe, the billionaire owner of chemicals conglomerate Ineos, will bid for Shell’s Buzzard oilfield in the North Sea valued at around US$2.2 billion (GBP 1.8 billion). The sale is part of Shell’s debt reduction plans, following its multibillion acquisition of gas major BG Group earlier this year. Total proceeds from asset sales are seen at up to US$30 billion (GBP 24.6 billion).

For Ratcliffe, if his bid wins, the deal would represent a much sought-after expansion into the energy industry of the country. His bid for Buzzard is the latest in the North Sea, after last year, Ineos acquired all the gas fields operated by German DEA Group in the U.K. North Sea shelf. The Buzzard field became property of Shell after the acquisition of BG Group. Ineos is also the owner of the only oil refinery in Scotland.

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Shell’s U.S deal to unlock global oil asset disposals

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* Shell lines up large North Sea asset sale

* In talks to sell out of Gabon, NZealand, Thailand, Tunisia

* Gulf of Mexico deal sets deal value at $60/bbl

* Shell seeks to sell $6-$8 bln of assets in 2016

By Ron Bousso: Wed Aug 31, 2016

LONDON, Royal Dutch Shell’s first oil field sale after its $54 billion BG Group acquisition bodes well for its disposal talks in the North Sea, Gabon and New Zealand, according to sources, signalling buyers will meet its expectations on value.

The $425 million deal in the Gulf of Mexico is welcome news for the Anglo-Dutch oil and gas giant which has struggled to kick off its plan to dispose of $30 billion of assets by 2018 or so in order to pay for the February deal and maintain a generous dividend policy amid soaring debt.

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Shell share price: Private equity-backed firms eye group’s North Sea assets

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Screen Shot 2016-08-29 at 22.18.50Anglo-Dutch oil major agrees to offload certain assets in Gulf of Mexico

by Tsveta ZikolovaTuesday, 30 Aug 2016, 09:00 BST

Investment companies backed by some of the world’s biggest private equity groups have expressed interest in Royal Dutch Shell’s (LON:RDSA) North Sea assets, the Financial Times has reported. The Anglo-Dutch oil major has unveiled plans to sell some $30 billion worth of assets across its global portfolio over the next three years or so is it looks to shore up its balance sheet in the wake of its acquisition of BG Group which completed earlier this year.

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European energy groups press on with multibillion-dollar disposals

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Andrew Ward, Energy Editor: August 7, 2016

Extracts relating to Shell…

Royal Dutch Shell says it is working on 17 potential disposals as it seeks to reassure investors that its target for $30bn of asset sales by 2018 is achievable.

This balancing act is especially tricky for Shell as disposals are crucial to reduce debts after its £35bn takeover of BG Group, completed in February.

“Shell is going to have to be flexible on price if it is to move forward with some of these deals,” said one energy banker. “They cannot just sit back and wait for oil prices to come back.”

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Crude Slump Sees Oil Majors’ Debt Burden Double to $138 Billion

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Screen Shot 2016-07-29 at 16.46.22“On the debt, it may go up before it comes back down,” Shell Chief Financial Officer Simon Henry told investors last week. “And the major factor is the oil price.”

By Javier Blas: August 5, 2016

When commodity prices crashed in late 2014, oil executives could look at their mining counterparts with a sense of superiority.

Back then, the world’s biggest oil companies enjoyed relatively strong balance sheets, with little borrowing relative to the value of their assets. Miners entered the slump in a very different state and some of the world’s largest — Rio Tinto Plc, Anglo American Plc and Glencore Plc — had to reduce dividends and employ draconian spending cuts to bring their debt under control.

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Shell quiz: when is a stake ‘held for sale’ on sale?

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  • The Australian
  • 12:00AM August 2, 2016

BRIDGET CARTERMergers & Acquisitions Editor: Sydney

GRETCHEN FRIEMANNMergers & Acquisitions Editor: Sydney

It’s unlike the CFO of an oil major to be imprecise when it comes to accounting classifications of assets.

Unless maybe he doesn’t mind causing a bit of mischief for a joint venture partner with whom relationships have been less than rosy of late.

Shell finance director Simon Henry set the hares running last week during a second-quarter earnings call when he declared the company’s 13.3 per cent stake in Woodside Petroleum had been reclassified first as “held available for sale” and then “held as an asset for sale”.

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Royal Dutch Shell stake in Woodside Petroleum ‘held for sale’

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by Angela Macdonald-Smith: July 29 2016

Royal Dutch Shell looks to be heading for an exit from Woodside Petroleum sooner rather than later, after reclassifying its remaining $3 billion stake in the Australian oil and gas producer as an “asset for sale”.

The move appears to be driven by technical reasons because of Shell’s reduced representation on Woodside’s board. But at the same time it may signal a firmer intention to dispose of the circa 13 per cent stake, which Shell has for some time declared as a non-strategic holding.

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Shell’s Debt Nears Edge of Comfort Zone as Rout Boosts Borrowing

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Net debt increased to a record $75 billion at the end of June from $70 billion three months earlier, Shell said Thursday as it reported a slump in second-quarter earnings. Additional borrowing drove up the ratio of net debt to capital, or gearing, to 28.1 percent — more than double the year-earlier level.

“We’re close to the maximum level and it could go up still with the oil price where it is,” Chief Financial Officer Simon Henry said on a conference call. “Thirty percent is an upper limit to where we can describe our position as comfortable.”

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Exclusive – Shell CEO warns Brexit could slow $30 billion asset sale plan

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Screen Shot 2016-06-30 at 18.15.43By Ron Bousso and Freya Berry: 08/07 11:41 CET

LONDON (Reuters) – Royal Dutch Shell’s chief executive, Ben van Beurden, has told investors that Britain’s decision to exit the European Union could slow its $30 billion (23 billion pounds) asset sale plan, especially in the North Sea which had struggled to attract buyers for years.

The comment, made during an investor and analyst event at the Wimbledon tennis tournament this week, came as Shell mandated Bank of America Merrill Lynch to find buyers for several key assets in the North Sea, including its stake in the lucrative Buzzard oilfield, hoping the sale would raise at least $2 billion.

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Shell, Total look to expand terminals and power plants in new markets

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Written by Reporter – 13/06/2016 6:00 am

Oil majors Shell and Total are said to be considering building terminals and power plants in new markets.

The move comes after companies have invested billions in plants to help produce liquefied natural gas (LNG) in place such as the US and Australia.

Laurent Vivier, president for the gas division of Total, said the company was ready to go downstream “as much as it takes” to unlock gas demand.

He said: “We need to be present in downstream ourselves, to create demand and unlock bottlenecks along the chain including regasification, pipeline and power plants.”

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Coming wave of gas puts focus on finding new shores

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Screen Shot 2016-06-06 at 10.26.15LONDON | BY RON BOUSSO AND OLEG VUKMANOVIC: Sun Jun 12, 2016

Energy giants such as Royal Dutch Shell and Total are looking to build terminals and power plants in new markets to soak up the industry’s rapidly burgeoning supply.

Companies have invested billions in plants to produce liquefied natural gas (LNG) in places such as Australia and the United States.

But gas demand growth is slowing, prices are down and the LNG volumes companies are set to produce will exceed those even major buyers such as China and Japan can absorb.

That has turned attention to the downstream market and opportunities to create new markets from Ivory Coast to remote Indonesian islands by building gas-fired power plants, pipelines, regasification and storage terminals.

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FT: Shell’s asset disposal plans face delay

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By: Carl Surran, SA News Editor: Jun 6, 2016

Royal Dutch Shell’s (RDS.A, RDS.B) $30B asset disposal plan put in place after its takeover of BG Group likely will drag on beyond 2018 if oil prices remain depressed, Financial Times reports.

Shell is planning to sell off a large chunk of its portfolio because the BG deal significantly increases the combined group’s debt load, but people involved in the sale process tell FT that while that timeline is still in place, the deadline could be pushed back if Shell cannot secure what it thinks the assets are worth.

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Report suggests Shell may be about to reveal more cost-cutting

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Screen Shot 2016-05-21 at 10.18.28Written by Keith Findlay – 06/06/2016 7:09 am

Oil giant Shell may be about to announce further cost cutting and a possible delay to its plans to offload assets, a report said yesterday.

Chief executive Ben van Beurden is under “increasing pressure” to justify the firm’s £35billion takeover of BG Group in the middle of a severe oil and gas industry slump, it added.

Shell is holding a capital markets day for investors tomorrow and it is thought it may update on its sale plans and fresh cost-cutting then.

Last month, Shell chief financial officer Simon Henry said cost levels in the North Sea needed to come down “substantially”.

Action already taken to integrate BG within Shell’s operations, including job cuts, were “probably about it for now” but he did not rule out further headcount reductions.

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Royal Dutch Shell Under Pressure As It Seeks To Divest North Sea Assets

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Summary

Royal Dutch Shell reportedly testing the waters for its $30 billion divestiture plan.

Most of the assets are located in the North Sea.

What will potential buyers be looking at?

Weak selling environment could result in company retaining some assets.

Gary BourgeaultMay 19, 2016 5:35 PM ET

After its $54 billion acquisition of BG Group, Royal Dutch Shell Plc (NYSE:RDS.A) (NYSE:RDS.B) had its credit rating cut after the huge increase in debt. Now it has reportedly entered into talks with interested parties in order to raise about $30 billion from the sale of assets, according to Bloomberg, citing sources not wanting to be identified.

The report said the bulk of the assets in question are from the BG acquisition, with the majority of the assets located in the high-cost North Sea region. In March, other unidentified people said Shell was also shopping assets in India and Trinidad and Tobago, along with the U.S. pipelines.

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Shell Said to Start Talks With Buyers for North Sea Asset Sales

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Screen Shot 2016-04-20 at 13.50.03By Dinesh Nair and Rakteem Katakey: May 19, 2016 – 1.24PM BST

Royal Dutch Shell Plc is in talks with potential buyers for some North Sea assets, mostly fields it got this year as part of the record acquisition of BG Group Plc, according to people familiar with the matter.

The Anglo-Dutch energy giant has been in talks with companies including privately held chemical producer Ineos Group AG and Neptune Oil & Gas, set up by former Centrica Plc chief Sam Laidlaw, the people said, asking not to be identified as the information is private. Shell is seeking to sell a package of assets and is talking with companies to gauge their interest before a formal sale process is launched, the people said. No final decision has been made and Shell may decide to retain the properties, they said.

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Shell Looks to Offload $40B In Non-Core Assets

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May 17, 2016

Royal Dutch Shell plc (NYSE:RDS.A) is divesting US$40 billion in non-core assets in its attempt to cut capital expenditures and raise cash in a desperate attempt to right its balance sheet wrongs after its takeover of BG Group plc earlier this year left it strapped for cash and laden with nearly US$81 billion worth of debt.

The costly merger at a time of depressed oil prices has rendered Shell the largest publicly owned company in the UK and the largest producer of liquefied natural gas (LNG) in the world.

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