Derwent London; BATM
Wednesday, 18 March 2009
Our view: Buy
Share price: 1579p (+1p)
The fact that Royal Dutch Shell is increasing its dividend is news in itself. At a time when companies ranging from some of the biggest on the FTSE 100 to the smallest Aim-listed groups are cutting back to preserve cash, a hike in returns for investors will be wholly welcomed.
The Anglo-Dutch exploration, production and refinery group said yesterday as part of its 2009 strategy update that it would pay out $10bn this year, a 5 per cent increase on the amount paid out to investors last year.
The strategy report is the company’s attempt to update the market on operational matters, and with the price of oil in particular being so volatile in the last year, investors should note that Shell says it is loath to change its longer term investment policy.
It will spend an extra $31bn to $32bn on investments this year, to maintain what it says is a market leading portfolio. That marks a change from the last two years when the company has launched fewer new projects to counter the effects of what watchers at Killik Capital argue was “the peak of the cost cycle”.
The strategy report had little impact on the shares yesterday, but existing investors will be quietly pleased. Last week, rival BP said that it too would be paying a dividend, but would not be drawn on how much.
True, while Shell’s investors should be concerned about what the chief executive, Jeroen van der Veer, calls “testing times in the oil and gas industry”, they should note that despite the price of oil falling by about $100 a barrel in the last eight months or so, Shell’s shares have outperformed the rest of the FTSE 100.
Those at Killik argue that the shares are a buy. “The main reason for holding the shares is the yield,” they say. “We’d remind investors that the group declares its dividend in dollars, so a 5 per cent increase in the dollar payout in 2009 would equate to a 26 per cent increase in sterling terms at current exchange rates. With the shares trading on a prospective yield of 7.7 per cent, we remain buyers.” We would argue that investors heed the advice. Buy.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
