Global energy giant Royal Dutch Shell hinted at how one number, over time, could change the future of the company
Reuben Gregg Brewer: (
TMFReubenGBrewer): Sep 1, 2017 at 9:16AM
Royal Dutch Shell plc (NYSE:RDS-A) (NYSE:RDS-B) is one of the world’s largest integrated oil majors. It competes with the likes of
ExxonMobil,
Chevron, and
Total. It recently doubled down on the energy business with a $50 billion acquisition. But while it’s working to pay off the debt it took on to get that deal done, CEO Ben van Beurden made an interesting statement about the future that you may have missed in the numbers of Shell’s quarterly report.
What Shell looks like now
There’s no question about how Royal Dutch Shell makes money. It is one of the world’s largest oil and natural gas drillers, with a large footprint in liquified natural gas. Oil and gas have been the driving force, broadly speaking, throughout all of the company’s over 100-years of existence. Investor questions generally focus on what management is doing to support and grow its core operations.
In the first half of the year that included capital spending of roughly $11.5 billion. The goal for the year is for capital spending of between $25 and $30 billion. Right now management expects to be toward the low-end of that range. That range, meanwhile, is the goal every year from now until 2020. read more
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