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Shell CEO says $80 oil supports energy infrastructure investment, even as steel quotas raise costs

25 Sept 2018

  • Royal Dutch Shell CEO Ben van Beurden says $80 oil is not “unreasonable” and will help fuel spending on oil and gas infrastructure after a period of underinvestment.
  • The Trump administration’s steel quotas are beginning to impede some of Shell’s construction projects in the United States, van Beurden said.
  • Shell has not yet canceled any construction due to the trade barriers, and it is driving down the cost of its offshore projects.

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The Trump administration’s steel quotas present a challenge to building new oil and gas infrastructure in the United States, but rising crude prices help fuel investment, Royal Dutch Shell CEO Ben van Beurden tells CNBC.

International benchmark Brent crude hit a nearly four-year high above $81 a barrel on Monday as the market braces for U.S. sanctions on Iran that threaten to wipe about 1 million barrels a day off the market. Brent’s multiyear high came after OPEC, Russia and other oil producers declined to boost output to tackle rising prices. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell hails bounceback towards deepwater drilling

Shell hails bounceback towards deepwater drilling

Head of exploration says break-even prices are now $30 a barrel

Anjli Raval, Senior Energy Correspondent AUGUST 12, 2018

Royal Dutch Shell is doubling down on drilling for oil far beneath the oceans, as the energy group eyes a cash bonanza from traditional deepwater projects despite a growing focus on new US shale investments. Andy Brown, Shell’s head of exploration and production, said the industry was seeing a “bounceback” towards deepwater… FULL FT ARTICLE read more

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INSIGHT: Royal Dutch Shell plc “Shell-shocked” over Tax Structure Criticism

By Miles Dean

Before considering whether the claims have any merit it is necessary to turn back the clock to 2005 when the two operating limbs of the Shell group were brought under one central holding company. The U.K. limb being The Shell Transport and Trading Company plc (“STTC”), the Dutch arm being Royal Dutch Petroleum Company NV (“RDPC”). By way of corporate reorganization, these two companies were brought under the common ownership of a new U.K. incorporated but Dutch tax resident company, namely Royal Dutch Shell plc (“RDS”) on July 20, 2005. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Takes A Shell-Acking After Earnings, Was It Justified?

Aug. 5, 2018 8:37 AM ET

Summary

  • Shell daily production dipped slightly in Q-2, causing a miss of EPS by 0.15 share.
  • Investors were not impressed and discarded the stock in droves.
  • In late May it reached an all time high stock price. It has since back-tracked about 10% and we are dipping our toes in at present levels.
  • Shell has been transforming it’s business model in recent years, and may now deserve a higher multiple.
  • Further, the 25 billion dollar stock buy back will tend to put upward pressure on the share prices.

Introduction

We were a little shocked at Shell’s, (RDS.A,RDS.B) decline on it’s Q-2 earnings release. Any serious review of operations could have foretold it. When you sell off $30 bn worth of assets that produce oil, you’re going to see a decline of this type. I mean seriously, we’re talking about 40K BOPD essentially on a company that produces over 3.5mm BOPD.

Perhaps large investors were wondering if the company is allocating capital in sufficient amounts to maintain and grow production. When we look we see that the company has been investing at a consistent rate to maintain production longer term. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell downgraded after below par results

02 Aug 2018

“Recent quarterly results have come in below our expectations,” Morgan Stanley analysts said in a note

Morgan Stanley reckons portfolios could do with fewer Royal Dutch Shell PLC (LON:RDSB) shares, reducing its rating for the oiler to ‘equal weight’ from ‘overweight’.

The downgrade follows Shell’s quarterly results, which were out last week.

“Recent quarterly results have come in below our expectations,” Morgan Stanley analysts said in a note.

“FCF and gearing are still set to improve but no longer in a differentiated manner. Dividend growth is now lagging peers, and the buyback has started but at a lower-than-expected pace. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell begins share buyback but vows to ‘tighten screws

Shell, which has its headquarters in the Netherlands, does business in more than 70 countries:TORU HANAI/REUTERS

Royal Dutch Shell launched a long-awaited $25 billion share buyback plan as it sought to shrug off disappointing second-quarter results.

The Anglo-Dutch energy group insisted it had had a “very good quarter” as profits excluding exceptional items rose to $4.7 billion, up from $3.6 billion a year earlier, aided by higher oil and gas prices.

The result was significantly below analysts’ expectations of almost $6 billion, however, because of factors including foreign exchange effects and rising operating costs. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell and Conoco Don’t Deserve This Treatment

You oil investors are one tough crowd. I mean, what do you want, really?

On Thursday morning in Europe, Royal Dutch Shell Plc finally came around and gave the masses what they had been shouting for: a $25 billion buyback program. The masses promptly dumped the stock. On Thursday morning in America, ConocoPhillips announced a slew of forecast-beating results, having recently boosted its own buyback program by $1 billion. But it also said it was raising its full-year investment budget by $500 million. Pearls were duly clutched and “sell” buttons pushed (the stock had moved into slightly positive territory as of writing this). read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell quarterly profit rises 30 percent, oil giant announces $25 billion share buyback

  • Oil giant Royal Dutch Shell posted a 30 percent rise in net profit in the second quarter of 2018.
  • Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $4.69 billion.
  • Shell announced a $25 billion share buyback program.

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Oil giant Royal Dutch Shell posted a 30 percent increase in net profit in the second quarter of 2018 and announced a $25 billion share buyback program.

Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $4.69 billion, up from $3.6 billion seen in the same quarter a year ago.

The earnings fell short of an analyst consensus of $5.967 billion, however, Reuters reported.

The company said the earnings “reflected increased contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Starts Long-Awaited Buybacks Even as Profit Misses

By Kelly Gilblom: 26 July 2018, 07:21 BST. Updated on 26 July 2018, 08:40 BST

*Energy giant to buy back $2 billion of shares over 3 months

*Second-quarter profit misses even the lowest analyst estimate

Royal Dutch Shell Plc finally gave investors the share buybacks they’ve been demanding, even as profit fell short of expectations despite resurgent crude prices.

The Anglo-Dutch energy producer said Thursday that it is starting a $25 billion share-repurchase program, initially buying up $2 billion of stock over three months. That should soothe investors who have grown increasingly anxious about when they’ll see the reward for sticking with Shell through the biggest oil-industry downturn in a generation. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell kick-starts £19bn windfall for patient shareholders

Shell boss Ben van Beurden said the move “complements the progress we have made since the completion of the BG acquisition in 2016” 

Jillian Ambrose: 

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Dutch ecologist party asks for investigation of Shell dividend tax payment

Dutch ecologist party asks for investigation of Shell dividend tax payment

Sat 16 June 2018

The Dutch ecologist party, Groen Links, has asked parliament this Saturday to appoint a commission to investigate payment of taxes on dividends by multinational oil company Shell. According to newspaper Trouw, company has since 2005 avoiding this rate “with permission of Dutch Treasury, through Jersey, island of channel of La Mancha [a dependence British Crown]”. During those years, “Shell has distributed among its shareholders about 45 billion euros, of which 7 billion should have been entered in coffers of state.” Shell claims that it has not violated tax rules. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell urged to resist calls to fall into line with Paris climate accord

20 MAY 2018 • 7:30PM

Britain’s largest shareholder advisory groups have called on investors in Royal Dutch Shell to reject growing demands for the oil giant to take full responsibility for its impact on the environment.

Shell faces a binding shareholder vote tomorrow to decide whether to adopt rigorous accountability standards to bring its operations into line with the Paris climate agreement. Glass Lewis and ISS have urged shareholders to reject the “unduly burdensome” and “problematic” proposal. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Spreads Its Bets Around as It Prepares for a Greener Future

Shell closed a deal to buy First Utility, a British energy company that owns neither power plants nor gas pipelines, in March. CreditTom Jamieson for The New York Times

By Stanley Reed

COVENTRY, England — There seems to be little about the scrappy energy company in central England that would appeal to Royal Dutch Shell, the button-down oil giant.

The little company, First Utility, is an upstart challenger. It offers friendly customer service, and low prices on electricity and natural gas. But it doesn’t own any power plants or gas pipelines; First Utility is a virtual energy company — the product of technological advancement and deregulation. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell puts buybacks on hold despite rising profit

Workers at a project in Malaysia. Shell has operations in more than 70 countries: FLICKR

Emily Gosden: April 2018

Royal Dutch Shell reported its best quarterly profits in five years but disappointed investors yesterday by generating less cash than expected and failing to start promised share buybacks.

The Anglo-Dutch energy giant said that resurgent oil and gas prices helped deliver a 69 per cent surge in profits to $5.7 billion in the first quarter — the highest since the first quarter of 2013.

Underlying profits of $5.3 billion were fractionally ahead of market forecasts but cashflow was below expectations and Shell’s shares fell 0.73 per cent. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell praises oil and gas operations run from Aberdeen

26 April 2018

ROYAL Dutch Shell finance chief Jessica Uhl has hailed a big increase in profitability in the North Sea and underlined the oil and gas giant’s commitment to the area.

As Shell posted a 42% increase in first quarter profits to $5.3bn (£3.8bn) from $3.8bn, helped by the rise in oil and gas prices, Ms Uhl indicated the North Sea has played a big part in the growth story.

“We’re seeing a really fantastic performance from our assets in the North Sea,” she told reporters. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell profits soar on stronger oil prices

Ron Bousso: APRIL 26, 2018

LONDON, April 26 (Reuters) – Royal Dutch Shell on Thursday reported a 42 percent rise in profits in the first quarter of 2018, the highest in over three years, boosted by higher oil prices and beating analysts’ expectations.

Net income attributable to shareholders in the quarter, based on a current cost of supplies (CCS) and excluding identified items, rose to $5.322 billion from a year ago, compared with a company-provided analysts’ consensus of $5.277 billion.

A year ago, net income was $3.754 billion. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Oil price rise sets up Shell for big profit

Shell reported underlying profits of $16 billion last yearDANIEL KALISZ/GETTY IMAGES

Emily Gosden, Energy Editor: April 23 2018

Royal Dutch Shell is expected to report its strongest quarterly results since 2014 this week.

Boosted by the rebound in oil prices, the Anglo-Dutch energy company is expected to announce underlying profits of $5.3 billion for the three months up to March, compared with $3.8 billion in the same period last year.

Such a result would be the first time that profits have topped $5 billion since the third quarter of 2014, when crude prices were just beginning to fall below $100 a barrel. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Friends of the Earth threatens to sue Shell over climate change contributions

Green group demands that the oil firm moves away from fossil fuels to comply with the Paris deal, in the latest of a rising number of climate litigation cases read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Big Oil takes stage for post-austerity beauty contest

Ron Bousso: 12 FEB 2018

LONDON (Reuters) – With years of austerity in their rear-view mirrors, the world’s biggest oil companies are locked in a beauty contest to lure investors with promises of growth and greater rewards.

Royal Dutch Shell and Total are emerging as frontrunners after a three-year slump thanks to strong growth projections but Exxon Mobil, the biggest publicly traded oil company, has largely disappointed with a weaker outlook.

Major oil companies slashed spending and cut costs after oil prices collapsed in 2014 and can now generate as much cash with crude at $50-$55 a barrel as they did when the price was around $100 earlier in the decade. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell can still grow in ‘rejuvenated’ North Sea, CEO says

Shell’s boss said yesterday that the North Sea is showing signs of “rejuvenation” and can provide the oil major with more room to grow.

Written by

Doubts about Shell’s commitment to the UK were raised last year when it agreed to sell a package of assets to Chrysaor.

But last month the Anglo-Dutch energy giant announced its decision to invest in redeveloping the Penguins area, 150miles north-east of Shetland.

The project will involve the construction of Shell’s first new manned installation in the northern North Sea in almost 30 years.

Chief executive Ben van Beurden said yesterday that the Penguins decision was “important” for Shell. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell pledges share buyback despite worry over cashflow

Royal Dutch Shell has sought to reassure investors that it will soon be able to press ahead with a promised $25 billion share buyback, after doubts over its cashflow overshadowed a surge in full-year profits.

Ben van Beurden, chief executive of the Anglo-Dutch oil group, said that he was “obsessed” with starting share buybacks as soon as possible and was confident that it could afford them, despite reporting weaker-than-expected cash generation that sent its shares down 2.5 per cent yesterday. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Profit Triples but Cash Flow Disappoints

LONDON—Royal Dutch Shell PLC more than tripled its profit in 2017 on a rebound in oil prices, but its closely watched cash-flow figures fell short of expectations, alarming investors. The British-Dutch oil giant said Thursday its 2017 profit on a current cost-of-supplies basis… was $12.1 billion, up from $3.5 billion in 2016. Its earnings for the fourth quarter jumped to $3.1 billion from $1 billion a year earlier. FULL ARTICLE  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell profits double despite $2bn US tax charge

Profits at Royal Dutch Shell more than doubled in the fourth quarter of last year, despite the group taking a $2bn charge related to President Donald Trump’s US tax reforms. The recovery in oil prices coupled with steep cost cuts after a three-year downturn are fuelling a resurgence in cash flow and profitability at Shell and the world’s other largest oil and gas groups. FULL FT ARTICLE

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell annual profits up 242% to £8.5bn as oil prices rise

Royal Dutch Shell has reported a surge in annual profits to £8.5bn – a leap of 242% on the previous year.

The Anglo-Dutch oil major credited the performance on a recovery in oil and gas prices during a “year of transformation” within the business.

Underlying earnings – which reflect day-to-day operations and strip out one-off costs – more than doubled to £11.2bn and were aided by a £3bn contribution during the final three months of the year.

The company said: “Full-year earnings benefited mainly from higher realised oil, gas and liquefied natural gas (LNG) prices, improved refining performance and higher production from new fields, which offset the impact of field declines and divestments.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell earnings expected to hit £11bn after oil prices recover

Jillian Ambrose: 

Royal Dutch Shell is set to unveil its highest earnings since the oil market collapse this week, just one year after the oil major’s lowest profits in more than a decade.

The Anglo-Dutch oil group’s efforts to overhaul its portfolio during the depths of the oil market rout are expected to be turbo-charged by the recovery in oil prices to over $65 a barrel last year, from under $30 a barrel at their lowest point in early 2016.

Analysts predict the group’s earnings on a “current cost of supply” basis will be more than $15.7bn (£11bn) for 2017 from just $3.5bn (£2.5bn) the year before. The final quarter of last year is expected to generate higher earnings than the whole of 2016 at $4.2bn (£3bn), according to analyst consensus forecasts. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

The top five oil and gas trends for 2018

COLE LATIMER: JANUARY 28 2018 – 4:23PM

This year will be the year of the oil and gas revival, as prices lift performance and major projects come online.

While Australia is increasing its focus on securing domestic gas supply, it is taking a greater role globally and evolving the industry.

Wood Mackenzie Australasia oil and gas leader Saul Kavonic has outlined the five trends that will mark LNG growth in 2018.

Australia leads LNG

Australia has been ramping up its LNG projects for a number of years, and 2018 will see it finally take the world’s number one spot from Qatar. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell tipped to double profits as oil price recovers

Shell has maintained or increased its dividend every year since the end of the Second World War.

PERRY GOURLEY Published: 23:54 Saturday 27 January 2018

The sustained recovery seen in oil prices is this week expected to see Royal Dutch Shell deliver a doubling in annual profits.

The energy giant, which this month approved its first significant development in the North Sea in more than six years, is predicted to report adjusted earnings of $15.7 billion (£11bn) for 2017, from $7.2bn a year earlier.

The improvement comes as Brent crude has hit $71 a barrel for the first time in more than three years, boosted by supply curbs from oil cartel Opec, a record run of declines in US crude inventories and a weaker US dollar. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell sees profits soar

January 28 2018, 12:01am

Royal Dutch Shell is forecast to have doubled its annual profits thanks to a resurgent oil price.

Brent crude has soared by 55% since June to more than $70 a barrel last week — a level not seen since the 2014 crash.

The surge is expected to have lifted Shell’s earnings from $7.2bn to $15.7bn last year, according to a consensus of analysts’ forecasts published ahead of this week’s results.

The Anglo-Dutch giant has been cutting costs and reducing debt levels after its 2015 takeover of smaller FTSE 100 rival BG. Last year it sold a large chunk of its North Sea oil fields to private equity-backed Chrysaor for as much as £3bn. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Oil Companies to Reopen Their Checkbooks as Brent Surpasses $70

After more than three years of belt-tightening, a resurgence in crude prices has fueled oil-company optimism, and a readiness to reopen the checkbook.

More than two-thirds of 813 senior oil executives expect increased capital spending in 2018, double last year’s percentage, according to a survey by Norwegian consultants DNV GL. About a third say research and development budgets will rise, and the same number predict hiring will expand.

Underlying those projections is a recovery in Brent crude to $70 a barrel, a level not seen since 2014 and more than double the price two years ago. That’s emboldened major producers to roll back some of the self-help measures they introduced during the downturn. Royal Dutch Shell Plc stopped offering dividends in stock last quarter, while BP Plc has started share buybacks. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Inside Oil Giant Shell’s Race to Remake Itself For a Low-Price World

“I am tasked,” says the oil major’s top futurist about the existential challenge ahead, “with making sure that shell isn’t a dodo.”-Jeremy Bentham, Shell scenarios leader Jeffrey Ball By JEFFREY BALL 6:30 AM EST

Last March, Royal Dutch Shell said it was selling most of its stake in Canada’s oil sands, a vast project that has extracted millions of barrels of sticky, gooey hydrocarbons from the ground in a process that resembles mining more than drilling. The oil and gas giant announced that it was unloading its oil-sands assets, for $7.25 billion, so that it could double down on businesses “where we have global scale and a competitive advantage.”

Left unsaid was a deeper reason for the divestiture. Months of deliberations behind closed doors at Shell headquarters in The Hague, Netherlands, had led the top brass at the world’s largest non-state-owned oil company by sales to conclude that the energy industry was changing fundamentally—in a way that could turn the profitable oil-sands operation into a liability. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Quest for new oil discoveries still on back burner

Ron Bousso: January 4, 2018

LONDON (Reuters) – Despite the strongest start for oil prices in four years, the world’s top oil companies are hesitating to accelerate the search for new resources as a determination to retain capital discipline trumps the hope of making bonanza discoveries.

Exxon Mobil, Royal Dutch Shell, Total and their peers are set to cut spending on oil and gas exploration for a fifth year in a row in 2018, according to consultancy Wood Mackenzie (WoodMac), despite a growing urgency to replenish reserves after years of reining back investment. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Goldman Says Big Oil Is Poised for Its Best Year in Decades

Big Oil’s slump is over and industry domination beckons, according to Goldman Sachs Group Inc.

In 2018, companies from Royal Dutch Shell Plc to Exxon Mobil Corp. will find themselves with a surplus of cash to fund dividends, ruling the world of deep water mega-projects and even coming out ahead in tax negotiations with oil-reliant governments around the globe, according to Michele Della Vigna, Goldman’s head of energy-industry research.

The industry’s success in cutting costs, paired with a low oil price that keeps smaller competitors out of the biggest projects, has created an environment where only major players can compete, Vigna said. That should bolster earnings and return the industry giants to a position of dominance not seen in 20 years. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Royal Dutch Shell’s Deepwater Strength

Dividend Stream: Nov. 30, 2017

Summary

  • Royal Dutch Shell held its annual analyst day earlier this week.
  • Management expects to generate at least $25 billion in excess cash flow by 2019.
  • Despite rising share prices, Shell can still be picked up here.
  • This idea was discussed in more depth with members of my private investing community, Streaming Income.

The recovery in oil and gas is in full swing. While benchmark crude oil prices have gone up across the board, Brent is now $63 per barrel, the catalyst for this recovery comes more in the fact that oil producers have done such a good job in bringing costs down.

Nowhere is that more starkly noticeable than in offshore, deepwater drilling, where dayrates for state-of-the-art rigs have gone from as high as $700,000 three years ago to just $250,000 or so. As onshore rig counts creep higher, cost inflation is once again becoming a fact of life in select onshore shale plays. With deepwater drilling, however, there are still many rigs ‘stacked’ in harbors across the world just waiting to come out and get activated, thereby keeping development and operational costs down. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Investors’ fortunes transformed as Shell restores cash dividend

Royal Dutch Shell investors reaped the rewards of its “transformation” yesterday when it said that it would resume paying its entire $16 billion annual dividend in cash and would press ahead with at least $25 billion of share buybacks by 2020.

Europe’s biggest listed energy company has been saving cash over the past two and a half years by paying about a quarter of its dividend in the form of new shares, part of a strategy to help it to cope with the longest sustained downturn in oil prices for a generation. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell signals an end to the oil downturn with return of all-cash payouts

Jillian Ambrose: 

Royal Dutch Shell has signalled the end of the three-year oil market downturn by restarting its all-cash shareholder payouts as its cash flow begins to boom.

The oil major began paying out dividends in the form of shares in 2015, in the wake of the oil price crash and its $50bn takeover of BG Group.

But chief executive Ben van Beurden said the Anglo-Dutch group was now confident that it could call an end its scrip dividend as its cost-cutting and divestment programme pays off. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell signals return to pure cash dividend, focus on renewables

FILE PHOTO: Ben van Beurden, chief executive officer of Royal Dutch Shell, speaks during a news conference in Rio de Janeiro, Brazil, February 15, 2016. REUTERS/Sergio Moraes /File Photo

Ron Bousso: NOVEMBER 18, 2017

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will return to paying pure cash dividends and step up its investment in cleaner energy as it turns a corner after more than two years of cost cuts and disposals prompted by weak oil prices.

Shell Chief Executive Officer Ben van Beurden sought to strike a balance between reassuring investors it can increase returns in its core fossil fuel business during an “era of volatility” in oil prices while preparing to step up investments in renewables. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Updates Company Strategy and Financial Outlook

NEWS PROVIDED BY: Royal Dutch Shell plc

THE HAGUE, Netherlands, November 28, 2017 /PRNewswire/ —

  • Scrip dividend programme to be cancelled with effect from the fourth quarter 2017 dividend
  • Annual organic free cash flow outlook increased to $25 to $30 billionby 2020, at $60 per barrel (real terms 2016)
  • Company sets ambition to reduce the net carbon footprint of its energy products in step with societys drive to align with the Paris Agreement goals

Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B) Chief Executive Officer, Ben van Beurden, today updated investors on the company’s strategy, setting out plans to grow returns and free cash flow, and outlining its ambition to reduce the net carbon footprint of its energy products.

“Our next steps as we re-shape Shell into a world-class investment aim to ensure that our company can continue to thrive, not just in the short and medium term but for many decades to come,” said van Beurden. “These steps build on the foundations of Shell’s strong operational and financial performance, and my confidence in our strategy and our ability to deliver on the promises we make.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell prepares to reward investors by restoring bigger cash payouts

Royal Dutch Shell introduced its scrip dividend programme in 2015 (Source: Getty)

Oliver Gill: Sunday 26 November 2017 6:14pm

Oil behemoth Royal Dutch Shell has been tipped to dish out more cash to investors as it scraps a programme of paying dividends in the form of shares. Analysts from UBS believe it is a case of “when not if” Shell restores a full cash dividend.

Shell chief executive Ben van Beurden is expected to signal the changes at a London management day on Tuesday.

The oil giant put a scrip dividend programme – where part of the firm’s dividend is paid by issuing new shares – in place in 2015 to reduce demands on cash as debt spiralled. Shell’s cash reserves were put under pressure by a combination of soft oil prices and a £47bn deal to buy gas producer BG. read more

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Analysis: Oil giants unlikely to share coal’s fate, for now

Ron Bousso, Simon Jessop, Susanna Twidale: NOVEMBER 17, 2017

The move by the $1 trillion fund, the world’s largest, rattled stock markets, exposing what is seen as one of the biggest threats to companies such as Royal Dutch Shell, Exxon Mobil and BP as the world shifts towards renewable energy such as wind and solar.

But in the meantime, expectations of growing global demand for oil and gas for decades to come mean reliance on these companies is likely to continue.

And although the Norwegian initiative will encourage those seeking to hasten the move to a low-carbon economy, the degree to which other investors can follow the fund’s example, at least in the short term, is less clear.

The European oil and gas index fell on Friday to its lowest since late September, extending declines following the Norwegian fund’s announcement. read more

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Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’

Norway’s proposal to sell off $35 billion in oil and natural gas stocks brings sudden and unparalleled heft to a once-grassroots movement to enlist investors in the fight against climate change.

The Nordic nation’s $1 trillion sovereign wealth fund said Thursday that it’s considering unloading its shares of Exxon Mobil Corp., Royal Dutch Shell Plc and other oil giants to diversify its holdings and guard against drops in crude prices. European oil stocks fell.

Norges Bank Investment Management would not be the first institutional investor to back away from fossil fuels. But until now, most have been state pension funds, universities and other smaller players that have limited their divestments to coal, tar sands or some of the other dirtiest fossil fuels. Norway’s fund is the world’s largest equity investor, controlling about 1.5 percent of global stocks. If it follows through on its proposal, it would be the first to abandon the sector altogether. read more

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Big Oil is under pressure, unloved and on sale. 

  • Norway wants to dump its stakes in oil and gas companies
  • Proposal adds to doubts over industry’s long-term outlook

Big Oil is under pressure, unloved and on sale.

Energy giants from Exxon Mobil Corp. to Royal Dutch Shell Plc are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by the world’s biggest investment fund wouldn’t be welcome news.

Norway’s $1 trillion sovereign wealth fund said on Thursday that it wants to sell about $35 billion of shares in oil and gas companies to make the nation “less vulnerable” to a drop in crude prices. Global energy giants favored by long-term investors including Italy’s Eni SpA, PetroChina Ltd. and Russia’s Gazprom PJSC account for more than $20 billion of that total. read more

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When Will Royal Dutch Shell Raise Its Dividend?

Aristofanis Papadatos: Nov 16, 2017

Summary

  • Royal Dutch Shell has not cut its dividend since World War II.
  • However, the company has paid the same dividend for 15 consecutive quarters.
  • Therefore, the big question is if and when its shareholders should expect the next dividend hike.

Royal Dutch Shell (RDS.A) (NYSE:RDS.B) offers a generous dividend yield, which currently stands at 5.9%. Nevertheless, the oil major has paid the same dividend for 15 consecutive quarters. Therefore, as most of its shareholders are holding the stock for its dividend, it is only natural that they wonder if and when they should expect the next dividend hike.

First of all, Shell has an enviable record in dividend payments to its shareholders. To be sure, the company has not cut its dividend since World War II. This achievement certainly confirms the exceptional business performance of the company. However, the company has markedly slowed its dividend growth rate during the last decade, as it has raised it by only 2.7% on average during this period. read more

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Norway shakes oil world by dumping investments

Norway is western Europe’s biggest oil producer and its giant sovereign wealth fund wants to reduce its exposure to oil which hit shares in BP and Royal Dutch Shell. Oil platforms in the Cromarty Firth, ScotlandANDREW MILLIGAN/PA

Norway’s giant sovereign wealth fund has unveiled plans to dump its entire holding in oil and gas companies in a $37 billion sell-off that was welcomed by campaign groups but put downward pressure on share prices. The $1 trillion fund, which manages the assets of the oil-rich nation, signalled its intent to prune its exposure to companies including BP and Royal Dutch Shell in a move aimed at making it less vulnerable to a permanent drop in the price of crude. SOURCE read more

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Anger Seethes on Margins of Historic Oil Cleanup in Nigeria’s Delta

Bodo received support from British law firm Leigh Day, which negotiated a 55 million-pound pollution settlement with Shell in 2015.

Nearly a decade after two catastrophic oil spills in the Niger Delta, a comprehensive cleanup has finally been launched in the southern Nigerian region.

Oil companies and activists hope it will be a blueprint for wider rehabilitation, but other badly polluted communities are unhappy not to be included.

Earlier this month, crews of young men equipped with high-pressure hoses began to attack the crude oil that has blighted the creeks and mangrove swamps in the area where they live.

The workers from Bodo in Rivers State are beginning a three-year project that claims to mark a new approach to cleaning up the delta, the vast polluted swampland that pumps the oil vital to Africa’s largest economy. read more

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Why Royal Dutch Shell’s Value Increased by $10 Billion in October

Shell has had a great year, and October added to the up trend, even though there wasn’t much actual news.

Reuben Gregg Brewer (TMFReubenGBrewer) Nov 6, 2017 at 4:32PM

What happened

Shares of Royal Dutch Shell plc (NYSE:RDS-B) rose 4.5% in October, which doesn’t sound like a huge amount until you consider it in dollar terms. That move is the equivalent of a $10 billion increase in the integrated oil major’s market cap. By comparison, competitor Chevron‘s stock fell more than 1% and ExxonMobil was up just 1.5% (or so) in the month. That, however, is the continuation of a trend, since Shell has been outperforming its peers all year long.

So what

The interesting thing is that there wasn’t much news to drive Shell’s performance last month. However, since around July and August, Shell has been on a tear. There are two parts to this solid showing. First, oil has been heading in a generally upward direction since about that point. Shell is a commodity company, so energy prices will be a big piece of the performance puzzle. read more

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Shell Swallows BG Group Whole Hog, Rolls Up Cash Flow

Ray Merola: Nov. 6, 2017

Summary

  • Shell is enjoying a remarkably successful corporate resurgence.
  • Legacy BG Group opex and capex has been absorbed entirely without a loss of combined hydrocarbon volumes.
  • Cash is king.
  • Debt is trending down.  The dividend is well-covered.  Returns are solid, and improving.
  • I remain constructive on RDS stock.

I’ve been pounding my fist on the table for Royal Dutch Shell (RDS.A) (RDS.B) for a couple of years now. It’s been that one, “fat pitch” worth waiting upon; these don’t come along very often. Since the end of 2015, ADR shares offered investors ~54% total return, or an 80% gain since the stock bottomed in January 2016.

The 3Q report included the hallmarks of recent previous quarters: linked-quarter revenue growth, continued strong cash flow, improving return-on-capital, reduced gearing, steady production, and ample dividend coverage. Details are found here. read more

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Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.

Royal Dutch Shell (RDS.A, RDS.B) is a well-oiled cash flow machine. In fact, it generates more free cash flows than any other oil majors, and this was evident from the latest quarterly results. The Anglo-Dutch oil giant could get even better in 2018 on the back of improvement in oil prices. The company’s shares will likely move higher while its valuation might also improve.

Latest Earnings

Royal Dutch Shell has recently released blowout quarterly results in which it posted significantly higher profits following a strong performance from its upstream, downstream and integrated gas divisions. The company reported an adjusted net profit (attributable to shareholders on a current cost of supplies (CCS) basis) of $4.1 billion, up 47% from the same quarter last year. That blew past the company-provided analysts’ estimate of $3.6 billion. The profits at the upstream segment ballooned from just $4 million a year earlier to $562 million. The profits at the downstream and integrated gas segments rose 28.4% and 37.7% to $2.67 billion and $1.28 billion respectively. read more

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Royal Dutch Shell takes cashflow crown off Exxon Mobil

Royal Dutch Shell has taken Exxon Mobil’s cashflow crown, a year after completing the biggest deal in its history.

Europe’s largest energy company vaulted ahead on this closely watched indicator of financial health in the first nine months of 2017 as assets acquired from BG Group from Brazil to Australia churned out cash. For the year as a whole, Shell is on course to surpass its larger US rival on the measure for the first time in about two decades.

Shell generated $28.38 billion (€24.34bn) of cashflow from operations in the first nine months of the year, compared with $23.52 billion (€20.18bn) from Exxon. Chief executive Ben Van Beurden has already spelled out that his main long-term goal was overtaking Exxon to become the best-performing oil major. read more

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Oil rebound drives Shell to booming profits

Jillian Ambrose: 

Royal Dutch Shell became the latest major oil company to deliver better than expected earnings in recent months as the market recovery begins to gain traction.

The Anglo-Dutch oil giant reported $4.1bn (£3bn) in earnings for the last quarter on a current cost of supply basis, its standard measure of profitability. The sum comes in well above analyst forecasts that the group would make $3.6bn for the latest quarter.

Shell’s quarterly earnings are almost 50pc higher than in the same quarter last year, when they reached $2.8bn. read more

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Shell beats profit forecasts, targets lower 2017 spending

Ron Bousso

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) reported an 18 percent rise in third-quarter profit on Tuesday, lowering next year’s capital spending to the bottom of the expected range as it grapples with persistently low oil prices and weak refining margins.

The Anglo-Dutch oil major, whose acquisition of BG Group transformed it into the world’s top liquefied natural gas producer, has been under pressure from shareholders to cut annual spending to ensure it can maintain its dividend given the slow recovery in the oil prices LCOc1. read more

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