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October 30th, 2015:

LNG moves from blessing to curse for BG/Shell

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By Andy Critchlow October 30, 2015

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Liquefied natural gas is taking the shine off Shell’s $70 billion takeover of BG Group. When the Anglo-Dutch major launched its deal in April, LNG was one of the main ways it justified the deal to investors. That line of argument doesn’t look so convincing now.

BG’s third-quarter results, released on Oct. 30, showed marketing and shipping of LNG taking a big hit. Despite the company revising higher its earnings expectations for the segment in 2015, revenue slumped 65 percent year-on-year, against a 9 percent top-line fall for the overall group. read more

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Shell’s $7.4B loss raises stakes for CEO’s big deal

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By Rakteem Katakey Bloomberg News: Oct 29 2015

Royal Dutch Shell’s worst loss in at least 16 years has further stoked concerns about the wisdom of buying BG Group. For now at least, investors are still giving Chief Executive Ben Van Beurden the benefit of the doubt.

Europe’s biggest oil company said it will press ahead with its largest-ever acquisition even as the worsening outlook for energy prices contributed to asset writedowns of almost $8 billion.

Van Beurden said in July that BG Group’s assets including Australian natural gas plants and Brazilian oil fields would add to Shell’s cash flow with crude at $67 a barrel in 2016, a position he declined to repeat Thursday. read more

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Shell Leads $19 Billion of Gas, Oil Writedowns in Just One Week

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Asjylyn Loder: 29 Oct 2015: Bloomberg.com

  • Shell leads writedowns with $8.2 billion in impairments

  • Predictions of future cash flow have fallen along with prices

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More than $19 billion in oil and gas writedowns have been reported in a single week as producers acknowledge what investors already knew.

Royal Dutch Shell Plc leads the pack in recognizing that drilling prospects are worth a lot less than they used to. The producer announced its worst loss in 16 years on Thursday, including $8.2 billion in impairments. Southwestern Energy Co., Whiting Petroleum Corp. and Anadarko Petroleum Corp. have likewise written off acreage value.

For investors, those charges aren’t much of a surprise after oil tumbled 44 percent in the past year, dragging stock prices along with it. Shell has declined 15 percent in the past 12 months, Whiting is down 73 percent and Anadarko fell 26 percent. read more

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BG Group Hits New Output Record as Shell Takeover Nears

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By SELINA WILLIAMS: 30 Oct 2015

Shell Chief Executive Ben van Beurden said Thursday that the BG deal, which remains on track for completion in early 2016, was a springboard for the Anglo-Dutch energy giant to focus on fewer and more profitable areas, such as deep water and integrated gas.

Shell’s comments came as BG reported a fall in its underlying earnings…

FULL ARTICLE

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BG Group profits drop as it nears merger with Shell

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By Jon Yeomans: 30 Oct 2015

BG Group, which is due to be taken over by Shell early next year, has reported a slump in profits as the low oil price continues to take a toll on producers.

Net income at the Reading-based company fell 63pc to $280m (£182m) in the third quarter from $759m a year earlier. Nonetheless, this beat expectations, with some analysts pencilling in a result closer to $200.5m.

Including impairments, disposals and foreign exchange movements caused by the falling value of the dollar, BG recorded a loss of £101m. read more

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Shell boss confident of ‘good’ ruling from ACCC on BG takeover

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Angela Macdonald-Smith: 30 October 2015

Royal Dutch Shell’s global chief executive Ben van Beurden says there is “massive support” from Australian federal and state governments for the oil giant’s $US70 billion ($98.6 billion) takeover of BG Group and is confident the national competition regulator will wave the deal through.

Mr van Beurden said even though the decision from the Australian Competition and Consumer Commission on the deal had been put back twice, he was “confident that they will come back with a good and prudent ruling”. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.