Shell Plc

21.00 (0.92%)
Share Name Share Symbol Market Type Share ISIN Share Description
Shell Plc LSE:SHEL London Ordinary Share GB00BP6MXD84 ORD EUR0.07
  Price Change % Change Share Price Shares Traded Last Trade
  21.00 0.92% 2,294.50 8,880,781 16:35:07
Bid Price Offer Price High Price Low Price Open Price
2,293.50 2,294.00 2,297.00 2,249.00 2,284.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Petroleum Products/refineries 381,314.00 42,309.00 604.10 379.82 160,694.24
Last Trade Time Trade Type Trade Size Trade Price Currency
18:45:05 O 409 2,293.85 GBX

Shell (SHEL) Latest News (4)

Smart Money!
SHEL is a large holding in the following funds:
 Fund  Percentage of Fund  Last Updated 

Shell (SHEL) Discussions and Chat

Shell Forums and Chat

Date Time Title Posts
07/2/202217:53You can be sure of Shell-
22/1/202220:14Stand up the true SHELL, Royal Dutch and or Transport3,063
15/6/201518:16Cash Shells & RTO Speculation Thread6

Add a New Thread

Shell (SHEL) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type

Shell (SHEL) Top Chat Posts

Top Posts
Posted at 10/5/2023 17:37 by jrphoenixw2
Telelgraph/Questor today:
'Painful for some to admit it, but this stock remains an income staple

Questor share tip: investors prioritising dollars and cents will be pleased to see this giant pumping out cash

The bumper first-quarter profits published by Shell last week will upset environmental campaigners and many householders alike, especially those who are finding it hard to pay their bills or keep their car topped up.

Even global tax payments of $5.6bn (£4.5bn) in the first three months of the year – $2.1bn more than in the equivalent period in 2022 – may not assuage their fury.

But those investors who desire reliable income and are prepared to focus purely on dollars and cents, nickels and dimes rather than debate environmental, social or governance (ESG) issues, will be pleased to see the oil and gas giant pumping out cash.

Shell handed over $6.3bn via buybacks and dividends in the first quarter alone and annualising that equates to £20bn, or a cash yield in the double-digit percentage range.

That is probably the key number right now because Shell’s earnings do take some studying.

On the face of it, the business model of an oil major is easy enough to understand.

They explore and drill for and then produce hydrocarbons; they ship and refine them; they trade them; and they sell refined product at petrol stations or end-products like chemicals. Simple.

Quantifying how well they do this is a different matter and besides statutory measures such as pre-tax or net (after-tax) income, Shell also refers to earnings before interest, tax, depreciation and amortisation (Ebitda), adjusted Ebitda, adjusted earnings and earnings on a CCS (current cost of supply) basis, which excludes the effect of changes in the oil price.

To quote Ed Murrow, the American broadcaster: “Anyone who isn’t confused really doesn’t understand the situation.”

To cut through all of that, it may be simplest to look at net, or after-tax, income. In the first quarter, Shell reported net profit of $8.7bn, compared with $7.1bn a year ago.

That increase may seem odd, bearing in mind the average prices received by Shell for its oil and natural gas fell by a fifth and two fifths respectively from the first quarter of 2022 to the first quarter of this year.

But Shell booked a $3.9bn writedown on its Russian assets in the first quarter of last year, so profits were down this time compared with a year ago once that is taken into account, thanks to lower hydrocarbon prices, no great change in output and higher taxes.

That meaty net profit figure more than covers the dividend, which equates to a 3.9pc forward dividend yield, according to analysts’ consensus estimates, and the buyback.

As such, it forms the main plank of any investment case for the stock, even if any portfolio-builder who runs strict ESG screens is likely to be unmoved and stick to their own personal principles, especially if they believe oil firms to be profiteering.

The sheer scale of the net profit number inevitably raises that issue.

This column, however, views commodity producers as price takers rather than price givers, by the very nature of their business – a commodity comes with little or no differentiation, by definition, so the supplier’s key tools to attract buyers are efficiency of production and price.

And there are so many influences on the oil price, ranging from global economic growth to geopolitics and sanctions, environmental pressures, the role of Opec and more.

Shell key facts
Market value: £162bn
Last full-year dividend (Dec 22): 86p
Yield (Dec 23E): 3.9pc
Turnover (Dec 23E): $346bn
Pre-tax profit (Dec 23E): $46.1bn
Net debt (Mar 23): $81.8bn
Return on capital (Dec 23): 24.6pc
Cash conversion (Dec 23): 68pc
PE ratio (Dec 23E): 7.0x

Shell probably has more influence on price for refined products, especially those for sale on petrol station forecourts, although drivers will do their best to shop around.

The company’s acknowledgement that trading of crude oil, refined products and petrochemicals contributed strongly to first-quarter earnings is harder to defend against profiteering claims, and campaigners will be pleased, in this context, to see the increased tax charge.

The debate is unlikely to die down and may only recede if oil and gas prices go lower and drag Shell’s earnings with them.

That remains a key risk to the share price and any falls here could offset the benefits of the income, if an investor is obliged to sell the paper at an inopportune moment and has to crystallise any losses.

Fears of a recession leave Brent crude back near $70 a barrel, so the effect of Opec’s April production cut is proving short-lived (to perhaps show how hard it is to profiteer and bend a global market like oil to anyone’s will).

But analysts are already forecasting decreases in net income in 2023, 2024 and 2025, so this is hardly news. The shares look cheap on yield and relative to the company’s £155bn in net assets, while a forward price-earnings ratio of seven looks undemanding. Shell remains an income staple.

Questor says: hold
Ticker: SHEL
Share price at close: £23.76

Posted at 04/5/2023 07:36 by gibbs1
Oil giant Shell beats expectations with $9.6 billion in first-quarter profit

Published Thu, May 4 2023
2:07 AM EDTUpdated 9 Min Ago

Sam Meredith

British oil giant Shell on Thursday posted stronger-than-anticipated first-quarter profit, extending a record run of bumper results after commodity prices surged in 2022 following Russia’s full-scale invasion of Ukraine.

Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analyst expectations of $8.6 billion, according to Refinitiv.

The company posted adjusted earnings of $9.1 billion over the same period a year earlier and $9.8 billion for the final three months of 2022.

Shares of the oil major are little changed year-to-date.

Flush with cash, Shell held the rate of its share buyback program steady at $4 billion over the next three months and kept its dividend unchanged at $0.2875 per share.

Reflecting on the first-quarter earnings, CEO Wael Sawan said the company “delivered strong results and robust operational performance, against a backdrop of ongoing volatility, while continuing to provide vital supplies of secure energy.”

Shell’s results follow hot on the heels of U.K. rival BP, which on Tuesday reported a drop in first-quarter profit but beat analyst expectations on robust oil and gas trading. Shares of BP fell on the news, however, as the London-listed company said it planned to slim down its share buybacks.

Big Oil smashed previous annual profit records in 2022 during a period of volatile oil and gas prices in the wake of Russia’s full-scale invasion of Ukraine.

For its part, Shell posted adjusted earnings of $39.9 billion for the full-year 2022. That comfortably surpassed the $28.4 billion in 2008 which Shell said was the firm’s previous annual record and was more than double the firm’s full-year 2021 profit of $19.29 billion.

Big Oil executives have typically sought to defend their bumper profits amid a barrage of criticism, tending to highlight the importance of energy security in the transition away from fossil fuels and suggesting higher taxes could deter investment.

The burning of fossil fuels such as coal, oil and gas, is the chief driver of the climate emergency.

Posted at 07/4/2023 14:46 by grupo guitarlumber
Shell PLC expects up to $1.2 billion of corporate loss in Q1

By: Wajeeh Khan
on Apr 7, 2023

Shell PLC expects higher gas output in the first quarter of 2023.

The oil giant also sees up to $1.2 billion of corporate loss (adjusted).

Wall Street currently has a consensus "overweight" rating on Shell.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Shell PLC (LON: SHEL) ended in the green on Friday after the multinational said it expects higher gas output in the first quarter of 2023.

Here’s what Shell PLC expects for its Q1

On the downside, though, the oil giant now expects up to $1.2 billion of corporate loss (adjusted) related to one-off tax charges, as per the press release.

In the prior quarter, that loss was capped at $600 million.

Integrated Gas, it added, could see $1.2 billion to $1.6 billion of depreciation in adjusted pre-tax earnings in Q1. The mid of that range is in line with the prior quarter figure.

The London-listed firm now forecasts between $2.8 billion and $3.1 billion in upstream adjusted earnings. Wall Street has a consensus “overweight221; rating on Shell stock that’s currently up only 2.0% versus the start of the year.

What else was noteworthy in the update?

According to Shell PLC, Integrated Gas production is now expected between 930,000 and 970,000 barrels of oil equivalent. In Q4, it had produced 917,000 boe.

The oil and gas company continues to expect upstream production to come in the range of 1.8 million to 1.9 million. The mid of that range matches production volumes in the fourth quarter.

Shell is expected to report its Q1 financial results on May 4th. It expects up to a $700 million benefit to adjusted earnings this quarter versus $300 million in the final quarter of 2022.

In February, the energy behemoth reported a record $40 billion profit for 2022.


Posted at 01/4/2023 08:48 by waldron

Shell Drops Singapore Biofuels Project, Splits Renewables

Energy Intelligence Group

Fri, Mar 31, 2023

Marc Roussot, Singapore
Tom Daly, London
Caroline Evans

Shell has opted not to proceed with planned biofuel and base oil projects in Singapore — and separately announced a split in its renewables business as restructuring continues under new CEO Wael Sawan.

The UK major had intended to build a 550,000 ton per year biofuels complex at Bukom to produce sustainable aviation fuel (SAF) and biodiesel.

It also planned to develop a Group II base oil project, providing feedstock for its lubricants production in Singapore.

“We will continue supplying base oil and lubricants, as well as biofuels to our customers in Singapore and the region,” a Shell spokesperson said, adding that the company would draw on its global portfolio to do so.

Transition Questions

The Singapore projects were a cornerstone of the transformation of Shell's Bukom refinery and associated Jurong petrochemical plant in the Southeast Asian city-state. Bukom is one of Shell’s five energy and chemicals parks globally and the only one in Asia.

Their cancellation raises question over Shell’s transition strategy, since they were expected to reduce the company's carbon footprint, particularly its Scope 3 (end-use) emissions.

Shell has already unveiled a plan to halve its operational (Scope 1 and 2) CO2 emissions in Singapore from 2016 levels by 2030.

Bukom was also set to play a key role in the Shell's ambition to produce around 2 million tons per year of SAF by 2025 and for SAF to account for at least 10% of its global aviation fuel sales by the end of the decade.

The company's transition plan is already under scrutiny amid speculation that it may retire its guidance of a 1%-2% annual decline in oil production until 2030.

SAF Uncertainty

The move also throws into question the future of the Bukom plant, whose refining capacity was more than halved back in 2021 to 237,000 barrels per day.

Demand for SAF has been rising in Asia in line with the International Air Transport Association’s call for the aviation industry to achieve net-zero emissions by 2050.

Shell became the first company to supply SAF in Singapore last year, and was well-placed to feed key regional airports.

However, unlike the US and Europe, where biofuels mandates are in place, Asia’s demand for low-carbon fuels is voluntary, creating investment uncertainties.

SAF currently accounts for around 0.1% of aviation fuel used globally and its growth trajectory is unclear. Biofuels remain an expensive product sold at a premium to standard fuels, making them difficult for many price-sensitive Asian buyers to afford.

Renewables Shake-Up

Meanwhile, Shell said separately it is splitting up its renewable electricity business, with wind and solar to come under the control of regional heads of power arm Shell Energy.

The move re-aligns management of Shell's renewable power generation business at a time when the returns delivered by its transition investments — relative to traditional oil and gas projects — are coming under scrutiny.

Shell sets a minimum internal rate of return target of 10% for its renewable projects. "If we cannot achieve double-digit returns in a business, we need to question very hard whether we should continue in that business," Sawan said on the company's fourth-quarter earnings call. "Absolutely, we want to continue to go for lower and lower and lower carbon, but it has to be profitable."

The major will eliminate the global role of executive vice president for renewable generation, held by Thomas Brostrom.

The former Orsted executive will remain at Shell as senior vice president for Shell Energy in Europe and Asia, reporting to Executive Vice President Steve Hill.

Meanwhile, Anna Mascolo, currently Shell's executive vice president for emerging energy solutions, has been appointed executive vice president for low carbon products and sectors, overseeing biofuels, carbon capture and nature-based solutions.

Mascolo and Hill will both report to Huibert Vigeveno, Shell's downstream and renewables director.

In January, Sawan's first month in charge, Shell announced a shake-up that combined its renewables and energy solutions business with its downstream segment. Renewables had previously been grouped with integrated gas.

Posted at 09/2/2023 10:43 by gibbs1
Shell’s board of directors sued over climate strategy in a first-of-its-kind lawsuit
Published Thu, Feb 9 2023
4:07 AM ESTUpdated 45 Min Ago

Sam Meredith

Key Points

Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday.

It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement.

“We do not accept ClientEarth’s allegations,” a Shell spokesperson said.

Shell recently reported its highest-ever annual profit of nearly $40 billion.

Shell’s directors are being personally sued for allegedly failing to adequately manage the risks associated with the climate emergency in a first-of-its-kind lawsuit that could have widespread implications for how other companies plan to cut emissions.

Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday.

It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement.

The claim, which has the backing of institutional investors with over 12 million shares in the company, is said to be the first case in the world seeking to hold a board of directors liable for failure to properly prepare for the energy transition.

“Shell may be making record profits now due to the turmoil of the global energy market, but the writing is on the wall for fossil fuels long term,” Paul Benson, senior lawyer at ClientEarth, said in a statement.

“The shift to a low-carbon economy is not just inevitable, it’s already happening. Yet the Board is persisting with a transition strategy that is fundamentally flawed, leaving the company seriously exposed to the risks that climate change poses to Shell’s future success — despite the Board’s legal duty to manage those risks,” Benson said.

We hope the whole energy industry sits up and take notice.
Mark Fawcett
Chief Investment Officer at Nest

The group of investors supporting the claim include U.K. pension funds Nest and London CIV, Swedish national pension fund AP3, French asset manager Sanso IS and Danske Bank Asset Management, among others. Altogether, the institutional investors hold more than half a trillion U.S. dollars in total assets under management.

“We do not accept ClientEarth’s allegations,” a Shell spokesperson said. “Our directors have complied with their legal duties and have, at all times, acted in the best interests of the company.”

“ClientEarth’s attempt, by means of a derivative claim, to overturn the board’s policy as approved by our shareholders has no merit. We will oppose their application to obtain the court’s permission to pursue this claim,” they added.

Shell, which is aiming to become a net-zero emissions business by 2050, said it believes its climate targets are Paris-aligned.

ClientEarth said leading third-party assessments have suggested this is not the case, however, noting Shell’s strategy excludes short to medium-term targets to cut the emissions from the products it sells, known as Scope 3 emissions, despite this accounting for over 90% of the firm’s overall emissions.

The aspirational goal of the Paris Agreement is to pursue efforts to limit global heating to 1.5 degrees Celsius above pre-industrial levels by slashing greenhouse gas emissions. The fight to keep global heating under 1.5 degrees Celsius is widely regarded as critically important because so-called tipping points become more likely beyond this level. These are thresholds at which small changes can lead to dramatic shifts in the Earth’s entire support system.

To be sure, the burning of fossil fuels, such as oil and gas, is the chief driver of the climate emergency.
Big Oil profit bonanza

The case comes shortly after Shell reported its highest-ever annual profit of nearly $40 billion.

The energy giant’s 2022 earnings smashed its previous annual profit record of $28.4 billion in 2008 and were more than double the firm’s full-year 2021 profit of $19.3 billion.

Shell CEO Wael Sawan described 2022 as a “huge year” for the company, saying he felt privileged to be stepping into the role he started on Jan. 1.

“As we look ahead, I think we have a unique opportunity to be able to succeed as the winner in the energy transition. We have a portfolio that I think is second to none,” Sawan said.

Shell’s results came as part of a Big Oil profit bonanza last year, bolstered by soaring fossil fuel prices and robust demand since Russia’s full-scale invasion of Ukraine.

Activists from Greenpeace set up a mock-petrol station price board displaying the Shell’s net profit for 2022 as they demonstrate outside the company’s headquarters in London on Feb. 2, 2023.

Nest Chief Investment Officer Mark Fawcett said the case against Shell’s board of directors showed investors were prepared to challenge those who aren’t deemed to be doing enough to transition their business.

“We hope the whole energy industry sits up and takes notice,” Fawcett said.

Separately, London CIV’s Head of Responsible Investment Jacqueline Amy Jackson said, “In our view, a Board of Directors of a high-emitting company has a fiduciary duty to manage climate risk, and in so doing, consider the impacts of its decisions on climate change, and to reduce its contribution to it.”

“We consider that ClientEarth’s claim is in our client funds’ interest

Posted at 19/1/2023 16:29 by sarkasm
Shell needs to pay out more in dividends, claims broker

Shell’s plan to increase dividends by 15% and repurchase more than US$18bln of shares isn’t nearly enough to get its share price above rivals, Canadian bank RBC says.

“We’re not convinced competing on TSR [total shareholder return] is likely to drive material share price outperformance versus peers.

“We believe Shell should shift its payout intentions from 20-30% to simply more than 30%, which would send a positive signal to investors,” RBC concluded.

RBC has a £32 share price and an “outperform221; rating for the stock, which is currently trading at £23.50.

Wael Sawan took over as CEO as of 1 January and will need to direct the company through the energy transition and improve shareholder returns to succeed, the bank added.

“Shell has made it clear it wants to ‘earn the right’ to grow through the energy transition, so we would be surprised if Sawan opted for a transformational deal anytime soon,” the investment bank said.

Major oil and gas companies are under pressure to reduce emissions and RBC believes “Shell should pivot to a more balanced approach.”

“We believe Sawan could lead the narrative around Scope 4 or ‘avoided emissions’, which is particularly relevant for its LNG [liquified natural gas] business,” the bank stated.

RBC also believe Shell’s pursuit of being the top super-major might hinder its growth.

The oil giant has executed “many ‘first of its kind’ projects over decades,” but RBC worries that is “the reason why Shell’s returns have suffered in prior years.”

For example, “Prelude FLNG– once touted as the first of many large-scale floating LNG facilities is now increasingly a white elephant as we see it and a one-off.”


Posted at 27/10/2022 19:56 by geckotheglorious
Shell - shareholder pay-outs boosted despite dip in profits
Our view
Oil prices have come down from their summer highs and that's eating into Shell's margins. However although the group may not be printing money at the same rate it once was, times are still relatively buoyant.
Oil prices are elevated by historical standards - brent crude is trading at over $90 a barrel at the time of writing. That's compared to lows of about $19 during the height of the pandemic. This is helping Shell slice tens of billions off net debt, and fund capital expenditure into new gas fields as well as low carbon alternative fuels.

CEO Ben van Beurden is in the process of stepping down, which could mean there are changes in the pipeline. Wael Sawan, currently the head of the group's integrated gas and renewables division, will replace him.

Until now Shell's renewable strategy has been underpinned by a "wait and see" approach. With Sawan taking over, it's reasonable to expect that some clearer direction, and perhaps a more forward-thinking approach, are on the way.

Shell's committed to achieving net zero by 2050 - that means reducing the group's emissions as well as those that come from the products they sell. That will require significant investment in new technologies, or a further restructuring of the current business. About a third of its capital expenditure has been earmarked for investment in low and zero carbon products, which will rise to around half in 2025.

Despite likely tweaks to the strategy, Shell is probably going to be an oil and gas giant for decades. Our greatest concern is that oil & gas groups in general risk the fate suffered by tobacco companies. With investors turning their nose up at tobacco stocks at any price, valuations in the cigarette industry have sunk to what would ordinarily be considered unsustainable lows. We're not immediately concerned Shell will end up in the ethical waste bin. But projects to keep the group moving in the right direction risk eating into cash flows - especially as many of the newer technologies the industry is exploring are untested at a global scale.

Shell broke out its renewables division for the first time in the first quarter, and there's space to be cautiously optimistic. While the division is still heavily in the red, underlying profits have been moving in the right direction over the past 9 months. However a quarter on quarter stumble this time around means investors will have a close eye on this division moving forward. If it's to become part of Shell's growth engine in the future, it will need to be firmly in the black. This is still just a tiny drop in Shell's $7bn bucket, but if the group can nudge it into the black while oil prices are soaring it should ease the transition considerably.

Shell can afford to dabble in renewables. That is, as long as the oil price doesn't catch a cold. It's essential the group gets this project firmly on course while it's got a strong wind in its sails. That's easier said than done - volatility and oil prices go hand in hand, particularly with the ongoing geopolitical backdrop.

The prospective yield has come a long way since being slashed during the pandemic, a reflection of the improved balance sheet. With plenty of other demands though, growth might be thin on the ground and remember dividends are variable and not guaranteed. The price/earnings ratio is well below the long-term average, which reflects concerns that Shell's fortunes ultimately depend on something it can't control - oil prices. Even in a best-case scenario, its days of depending on the black stuff are ultimately limited.


Posted at 28/9/2022 13:34 by the grumpy old men
Shell buys Nigerian solar provider in first African power deal

Sep. 28, 2022 7:27 AM ETShell plc (SHEL)By: Carl Surran, SA News Editor

Justin Paget

Shell (NYSE:SHEL) made its first power sector acquisition in Africa on Wednesday with the purchase of Nigerian renewable energy provider Daystar Power for an undisclosed sum, Financial Times reports, as Shell expands its global renewables portfolio.

Daystar provides off-grid power to commercial and industrial clients in Nigeria, Ghana, Togo and Senegal, offering solar and hybrid power solutions with battery storage.

The cash inflow from Shell (SHEL) will help Daystar increase its installed solar capacity to 400 MW by 2025 from 32 MW currently and expand services beyond West Africa to the eastern and southern parts of the continent.

The deal for Daystar is "a fundamental step for Shell in growing our presence in emerging power markets," said Thomas Brostrom, Shell's (SHEL) executive VP for renewable generation.

"Contrary to popular opinion, it looks like a good time to sell Shell, despite its attractive valuation," Manika Premsingh writes in a bearish analysis posted recently on Seeking Alpha.

Posted at 16/8/2022 11:41 by charggg
Its like the Shell ceo and board want the share price lower and dividend lower - so they can buyback shares at these levels. And if the oil price drops, the share price drops with it and all these buybacks they are doing currently will all be in losses and under water.So if oil prices drop back to $60 we will have lower share price and a lower dividend as this management would find the lower oil price a good excuse to not raise dividends, while all the $10-$15 bn share buybacks down the drain as all of it would be underwater. Shell's management needs to understand that no one buys Shell for huge 100s of percent of share price growth - its for the dividend income that Shell is known for - which obviously is gone with the dividend cut.
Posted at 16/8/2022 09:26 by shellsell
I am beginning to feel a little cheated now - it is obvious that the Shell BoD are not putting the shareholders first and this is reflective in the share price. Oil and Gas prices have recovered, the debt is down, both are doing buybacks, but the Shell shareholders are not being rewarded. Someone on a different board makes a good comparison to Chevron - our share price performance was virtually tracking theirs for the 5 years before the 2020 Covid impact. However Shell cut the dividend and CVX did not. Since this decision the CVX share price has performed 50% better relatively than Shells.
Shell share price data is direct from the London Stock Exchange
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

Log in to ADVFN
Register Now

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: +44 (0) 203 8794 460 |

V: D: 20230607 21:59:38