17:00 28 Jul 2016
Investors in Royal Dutch Shell PLC (LON:RDSB) should be steeling themselves for an eventual cut in their dividend payouts, according to analysts.
In half-year results on Thursday, the Anglo-Dutch company held its interim dividend steady, at 47 cents, despite underlying earnings for the quarter falling 72% to US$1bn.
Its gas and downstream businesses fuelled earnings, more than outweighing a US$2bn loss in the upstream division, which faced one-off charges of US$649mln.
But shares in the group fell 53.5p, or 2.5%, to 2051.5p.
Hargreaves Lansdown equity analyst Nicholas Hyett said: “Shell’s commitment to the dividend is legendary, and half the Netherlands would keel over in apoplectic horror if Royal Dutch Shell ever cut the payout.
“However, the question is whether the company ultimately will have any choice in the matter.
“Even after dramatic cuts, Shell’s spending plans still outstrip its likely cash flows, and with the dividend yield now over 7%, investors seem to be questioning whether the current rate of pay-out can continue.”
Ayondo Markets chief trader Jordan Hiscott said: “Shell’s huge miss on second quarter profit estimates, by over US$1bn, is the largest I’ve seen in a while.
“The firm is clearly feeling the effects of the low oil price and hefty costs related to its arguably expensive takeover of BG Group, but what surprises me is that, with a loss of this magnitude, dividends are yet to be cut.
“With this in mind, it seems highly likely that we’ll see a cut to the full-year dividend later down the line.”
The price of a barrel of Brent crude fell about 1.7% to US$42.75 while a barrel of West Texas Intermediate dropped 1.62% to US$41.25.
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.
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.
