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RDSA Shell Plc

1,895.20
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Shell Plc LSE:RDSA London Ordinary Share GB00B03MLX29 'A' ORD EUR0.07
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1,895.20 1,900.20 1,900.80 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Shell Share Discussion Threads

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DateSubjectAuthorDiscuss
23/3/2016
14:16
Div pay-date Mar 29 2016
sarkasm
22/3/2016
18:42
Royal Dutch Shell Plc : Additional Listing

08:37 ET from Royal Dutch Shell plc

LONDON, March 22, 2016 /PRNewswire/ --

Royal Dutch Shell plc ("Shell") (NYSE: RDS.A)(NYSE: RDS.B) announces that application has been made to the UK Listing Authority and the London Stock Exchange for 65,704,048 A ordinary shares of Eur 0.07 each in the capital of Shell (the "Shares") to be admitted to the Official List of the United Kingdom Listing Authority and to be traded on the main market of the London Stock Exchange. Application will also be made to Euronext Amsterdam for the Shares to be admitted to trading on Euronext Amsterdam.

The Shares are to be issued as a scrip dividend alternative to receiving a cash dividend in respect of the fourth quarter 2015 interim dividend and dealings are expected to commence on March 29, 2016.

These Shares will rank pari passu with the existing issued A ordinary shares of Eur 0.07 each.

This announcement will be available on

March 22, 2016

Mark Edwards
Deputy Company Secretary


ENQUIRIES

Shell Media Relations
International, UK, European Press: +44-20-7934-5550

Shell Investor Relations
Europe: + 31-70-377-4540
United States: +1-832-337-2034

SOURCE Royal Dutch Shell plc

sarkasm
20/3/2016
20:51
Proactive Investors Commodity Watch
www.proactiveinvestors.com.au/

Proactive Investors Australia delivers insights on global commodity markets, along with the impact on local market sectors.

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Oil prices hit new 2016 high on hopes of supply cut
Monday, March 21, 2016 by Proactive Investors

The oil price received a boost last week and hit a 2016 high on Friday

The oil price received a boost last week and hit a 2016 high on Friday

The oil price received a boost last week and hit a 2016 high on Friday.

The fundamentals have not changed, so it still seems range bound above forty dollars as producers contemplate a longer period of low prices.

With talk of a producers meeting in Qatar next month, sentiment has been gaining strength in advance of a possible supply cut.

Leading energy producers, including Russia and Saudi Arabia are to gather in Doha on April 17th to discuss a further output freeze.

With little chance of an uptake in demand, the supply side fundamentals need to be addressed.

Key OPEC players have always said they will not take action alone. Russia’s support for this initiative is crucial, but the monitored implementation of any agreement will be essential.

The executive director of the International Energy Agency, Fatih Birol said in an interview with Bloomberg this week that it was “unexpected that it would have major implications” and he said he sees the real impact coming from a reduction of US supply, estimated about 600,000 barrels less for 2016.

Birol says he feels the low price has probably “bottomed out” unless US resumes production or we see a worsening of the economic climate in China and India.

The pessimistic global economic growth situation was reinforced in this month’s OPEC monthly oil market report.

Growth has been revised down for 2016 to 3.1 percent, after estimated growth of 2.9 percent in 2015. For the OECD, growth for this year has been revised lower to 1.9 percent, slightly below the 2 percent seen in 2015.

Oil producers will continue to look to India and China as they still lead the way, “continuing to expand at a considerable pace of 7.5 percent and 6.3 percent, respectively.”

Other emerging economies are not performing as well with Brazil and Russia continuing to decline.

“World oil demand in 2015 grew at 1.54 million barrels a day to average 92.98 million barrels a day” according to the OPEC March report.

Expectations for global oil demand growth in 2016 remained unchanged at around 1.25 million barrels a day, to average 94.23 million barrels a day.

While the demand figure still remains healthy, the glut of oil on the market is still too high. Demand for OPEC crude is expected to be 31.5 million barrels a day in 2016, with non-OPEC production supplying the remainder.

The uncertainty around where the oil price will go, is being eased as prices stay stable.

Bank of America, Merrill Lynch Global Research says that “OPEC's output freeze, a strong driving season, easy money, and falling US shale output should push WTI prices to US$47 by June.”

The report notes that prices have moved up a bit faster than anticipated “despite soft industrial activity in most emerging markets, high oil inventory levels, and incremental Iranian barrels.”

While there’s likely to be a tighter market in months to come, the bank adds a note of caution saying, “if the oil price crash was practically a linear event, the recovery will not be,” as they expect a “w” shaped recovery into next year.

A sense of confidence in the market will be welcomed by everyone, even if its in the short term.

Investors need to be watching out for extra Iranian barrels as they resume oil production while traders will also be monitoring a possible resumption in US production if the price continues to improve.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

maywillow
20/3/2016
16:28
Shell divorce
Aramco divorce leaves Shell investors in the dark

Andy Critchlow March 20, 2016 Last Updated at 21:21 IST
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Andy Critchlow

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Saudi Aramco, Shell break up in US Saudi Aramco and Shell to separate Motiva assets in US Shell logs 44% drop in 4th quarter earnings Shell says can make BG deal work despite weak oil price Shell due to complete BG takeover on February 15 next year

Building gigantic refineries is a complex business, but dividing them up between investors can be even trickier. After almost 20 years together, Royal Dutch Shell and Saudi Aramco plan to break apart their Motiva Enterprises 50:50 joint venture, which runs the United States' biggest refinery at Port Arthur and a fuel marketing network. Given that the Anglo-Dutch major and Saudi's state oil giant invested $10 billion into expanding Port Arthur three years ago, Shell shareholders would probably like to know that the value of what they're getting justifies a potentially messy divorce.

From the split Aramco gets Port Arthur, which is geared up to process heavier Arabian crude and guarantees Saudi a route into the United States, the biggest consumer of petroleum products. This suits the Saudis, who have been squeezed over the last decade by the emergence of lighter-grade domestically produced sweet oil. Shell, meanwhile, gets two other refineries on the US Gulf of Mexico. But neither Shell nor Aramco disclose the revenue generated by each refinery, or from Motiva's fuel marketing business.

One way to value the refineries is to read across from the $1,672 per barrel recently paid by PBF Energy to acquire the Chalmette refinery from Exxon Mobil Corp and Petroleos de Venezuela. Given that Motiva's plants process almost 1.1 million barrels per day, that implies a valuation of $1.8 billion, with Aramco getting 55 per cent of this by virtue of getting to control Port Arthur, which churns out 603,000 barrels a day.

But these figures only account for the refinery processing and don't take into account the different grades of liquids produced or storage facilities. Each of the three plants also could be storing significant volumes of oil and refined products, which would also affect the value.

Given Aramco is wholly owned by the Saudi government, its returns may not be of paramount importance. Shell investors should be less happy at the lack of clarity. As the group looks to bed down its recent $52 billion acquisition of BG and divest $30 billion of assets, it needs to avoid losses elsewhere.

Shell may yet avoid this if any shortfall is compensated via a proportionate cash payout from Aramco. But given the current low oil prices, the Saudis wouldn't be inclined to be generous.

ariane
19/3/2016
19:30
Oil Rally Not Sustainable Says Russian Central Bank
Mar. 19, 2016 11:57 AM ET|
8 comments |
Includes: BNO, DBO, DNO, DTO, DWTI, OIL, OLEM, OLO, SCO, SZO, UCO, USL, USO, UWTI
Gary Bourgeault
Gary Bourgeault
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Summary

The Russian central bank sees several catalysts that could stop the oil rally in its tracks.

Bearish rig count report from Baker Hughes could signal a reverse in direction.

Supply will continue to increase rather than slow down in 2016 - even if there is a decline in shale production.

Battle for market share is one of the major catalysts not being considered.

source: Stock Photo

I believe it's very clear this oil rally is running on fumes and was never the result of an improvement in fundamentals. That means to me this rally is going to quickly run out of steam if it isn't able to run up quicker on existing momentum. I don't see that happening, and it could pull back dramatically, catching a lot of investors by surprise. The Russian central bank agrees, saying it doesn't believe the price of oil is sustainable under existing market conditions.

Cited by CNBC, the Russian central bank said, "the current oil market still features a continued oversupply, on the backdrop of a slowdown in the Chinese economy, more supplies originating from Iran and tighter competition for market share."

In other words, most things in the market that should be improving to support the price of oil aren't. That can only mean one thing: a violent pullback that could easily push the price of oil back down to the $30 to $32 range. If the price starts to fall quickly, we could see panic selling driving the price down even further.

I think most investors understand this is not a legitimate rally when looking at the lack of change in fundamentals. I'll be glad when the production freeze hoax is seen for what it is: a manipulation of the price of oil by staggered press releases meant to pull investors along for the ride. The purpose is to buy some time to give the market more time to rebalance. Once this is seen for what it really is, oil will plummet. It could happen at any time in my opinion.

Rig count increases for first time in three months

For the first time in three months, the U.S. rig count was up, increasing by one to 387. By itself this isn't that important, but when combined with the probability that more shale supply may be coming to the market in 2016, it definitely could be an early sign of the process beginning.

EOG Resources (NYSE:EOG) has stated it plans on starting up to 270 wells in 2016. We don't know yet how much additional supply it represents, but it's going to offset some of the decline from other companies that can't continue to produce at these price levels. There are other low-cost shale producers that may be doing the same, although I think the price of oil will have to climb further to make it profitable for them, probably around $45 per barrel.

It's impossible to know at this time if the increase in the price of oil was a catalyst, or we've seen the bottom of the drop in rig counts. The next round of earnings reports will give a glimpse into that.

Fundamentals remain weak

Most of the recent strength of the price of oil has been the continual reporting on the proposed production freeze from OPEC and Russia. This is light of the fact there really won't be a freeze, even if a piece of paper is signed saying there is.

We know Iran isn't going to agree to a freeze, and with Russia producing at post-Soviet highs and Iraq producing at record levels, what would a freeze mean anyway? It would simply lock in output levels the countries were going to operate at with or without an agreement.

The idea is the freeze is having an effect on the market and this will lead to a production cut. That simply isn't going to happen. There is zero chance of that being the outcome of a freeze, if that ever comes about.

And a freeze without Iran isn't a freeze. To even call it that defies reality. How can there be a freeze when the one country that would make a difference isn't part of it? If Iran doesn't freeze production, it means more supply will be added to the market until it reaches pre-sanction levels. At that time, all Iran has promised is it may consider the idea.

What does that have to do with fundamentals? Absolutely nothing. That's the point.

Analysis and decisions need to be based on supply and demand. Right now that doesn't look good. The other major catalyst pushing up oil prices has been the belief that U.S. shale production will decline significantly in 2016, which would help support oil. The truth is we have no idea to what level production will drop. It seems every time a report comes out it's revised in a way that points to shale production remaining more resilient than believed.

I have no doubt there will be some production loss in the U.S., but to what degree there will be a decline, when considering new supply from low-cost shale companies, has yet to be determined. I believe it's not going to be near to what was originally estimated, and that will be another element weakening support over the next year.

Competing for market share

One part of the oil market that has been largely ignored has been the competition for market share itself. When U.S. shale supply flooded the market, the response from Saudi Arabia was to not cede market share in any way. That is the primary reason for the plunge in oil prices.

There has been no declaration by the Saudis that they are going to change their strategy in relationship to market share and have said numerous times they are going to let the market sort it out, as far as finding a balance between supply and demand. So the idea they are now heading in a different direction is a fiction created by those trying to find anything to push up the price of oil.

It is apparent some of the reason for increased U.S. imports comes from Saudi Arabia in particular lowering its prices to nudge out domestic supply. It's also why the idea of inventory being reduced in conjunction with lower U.S. production can't be counted on. It looks like imports will continue to climb while shale production declines.

More competition means lower prices, although in this case, Saudi Arabia is selling its oil at different price points to different markets. It's the average that matters there, and we simply don't have the data available to know what that is.

In the midst of all of this, Russia is battling the Saudis for share in China, while the two also battle it out in parts of Europe, with Saudi Arabia looking to take share away from Russia. Some of Europe has opened up to competitors because it doesn't want to rely too much on Russia as its major energy source.

For this and other competitive reasons, I could never trust a production freeze agreement if it ever came to fruition. They haven't been adhered to in the past, and they won't be if it happens again. Saudi Arabia has stated several times that it feels the same way.

Conclusion

To me the Russian central bank is spot on in saying the chance of a sustainable oil rally is slim. It also accurately pointed out the reasons for that: it's about the lack of the fundamentals changing.

With U.S. inventory increasing, rig counts probably at or near a bottom, no end in sight to oversupply continuing, and competition for a low-demand market heating up, there is nothing I see that can justify an ongoing upward price move. I don't even see it being able to hold.

A weaker U.S. dollar has legitimately helped some, but it can't support the price of oil on its own. When all the other factors come together in the minds of investors, and the price of oil starts to reverse direction, there is a very strong chance a lot of bullish investors are going to get crushed hard. It is probably time to take some profits and run for the exit if you're in the oil market for the short term.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

ariane
19/3/2016
09:19
Suresh Prabhu launches book on shaping India’s Energy Future
India Infoline News Service | Mumbai | March 19, 2016 11:30 IST
It is a challenging time for policy makers with fluctuating fuel prices globally. The entire value chain of the energy sector is in need of innovation. There is a need for investment in exploration of oil and gas fields for a good energy mix”, said Suresh Prabhu, Hon’ble Minister for Railways
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“I would like to congratulate Shell, CEEW and TERI for the remarkable work that they have done. The book will start a public debate towards developing long term sustainable policies to strengthen the Indian energy sector. It is a challenging time for policy makers with fluctuating fuel prices globally. The entire value chain of the energy sector is in need of innovation. There is a need for investment in exploration of oil and gas fields for a good energy mix”, said Suresh Prabhu, Hon’ble Minister for Railways, at the launch of the book ‘Energizing India: Towards a Resilient and Equitable Energy System’in the capital yesterday. The book argues that India’s energy future would depend on four transitions: from traditional to modern energy, from rural to urban energy demand, greater integration into the global energy system, and technological choices that will be affected by the imperative of battling climate change.

Suresh Prabhu launching Energizing India

The book (authored by Suman Bery, Arunabha Ghosh, Ritu Mathur, Subrata Basu, Karthik Ganesan and Rhodri Owen-Jones) is the result of a three-year long collaboration between three leading institutions: the Council on Energy, Environment and Water (CEEW), The Energy and Resources Institute (TERI) and Shell. The book focuses on India’s energy system as a whole and highlights both the demand and supply sides of the energy system, laying special emphasis on the fuel mix dimension which most directly affects both energy security and environmental sustainability between now and 2050.

India is in the midst of a huge transformation as the population and economy grows, incomes rise, manufacturing becomes a bigger part of the economy and the country becomes more urbanised. This growth will drive a sustained expansion of infrastructure for energy, urban development and transportation. If India is to build an energy infrastructure commensurate with ambitions to limit greenhouse gas emissions, it must now also seriously consider infrastructure using natural gas, hydropower and nuclear energy.

Commenting on the initiative, Dr. Yasmine Hilton, Chairman Shell Companies in India said, “A global energy transition is under way as the world seeks to meet rising demand while lowering carbon emissions. Yet energy systems are large, complex and slow to change. India is in the midst of a major transformation as the population and economy grows, incomes rise, manufacturing becomes a bigger part of the economy and the country becomes more urbanised. To ensure that consumers across the country have access to clean and affordable energy, it will be important to de-risk and stimulate long-term investments in the energy sector. Our study illustrates that the private sector will play a key role in building capacity, augmenting skills and developing technology”. Jeremy Bentham, Head of the Scenarios Group at Shell adds, “We have long recognized the critical role energy has in enabling a decent quality of life for people across the world, wherever they live. Given the much-needed spread of prosperity from the minority to the majority world, the big challenge, simply put, for both society and a company like Shell, is how to provide “much more energy and much less CO2”. Society needs durable solutions emerging from an informed debate.” Commenting on the book itself, Suman Bery, Chief Economist and lead author, notes, “I have been privileged to work with distinguished local partners to explore the technical and political dilemmas and choices that India faces in a time of global energy system transition. I trust our joint effort will contribute to the already lively national debate on these important and difficult issues.”

The book finds that in the short to medium-term, despite a massive renewable energy revolution in India, fossil-based primary energy could increase from 2 to 4 times its current level by 2050.

This is because conventional options like gas, hydro and nuclear along with coal will continue playing an important role in supporting new renewables. Moreover, with renewables having little scope in being able to supply industrial heat, natural gas holds prominence as a cleaner alternative to the use of coal and diesel. The book further suggests that between now and 2050, transportation will continue to rely heavily on oil-based fuels in spite of gradual penetration of electric fuels and an increasing use of biofuels. Therefore, even as it gives a boost to renewable energy, India cannot veer away from fossil fuels significantly, at least in the short to medium term.

In the short term, to provide energy and not hinder economic growth, coal will be the most critical fuel, particularly if the highest priority is providing electricity to all those that require it. But the use of coal could peak by 2040 if cleaner alternatives progress as expected, so the need for assets to mine, handle and transfer coal may decline after that.

For renewables to make a significant contribution, any policy on power generation should go hand in hand with initiatives to electrify end-use technology (electricity currently makes up only a fifth of useful energy consumed). Even at this point, renewables will only diversify the supply mix. That said, when compared against a ‘business as usual’ scenario, India’s projected deployment of energy from renewable sources is significant in terms of scale (potentially supplying up to a quarter of energy demand by 2050), performance of other countries, and the timelines within which current policies aspire to achieve large-scale deployment.

Dr Arunabha Ghosh, CEO, and one of the lead authors of the book, said, “Energy security and an integrated approach should lie at the heart of India’s National Energy Policy. India should not be afraid of high import dependence, but it should intelligently evaluate the benefits and trade-offs from investing in domestic production versus imports over the next few decades in planning its fuel and technology transitions. Achieving energy security for India would mean paying attention to four imperatives: assured supply, safe passage, secure storage, and a seat at one or more international forums involved in international energy trade and governance. India’s transition to robust and inclusive energy systems holds the key to solving several key development challenges such as eradicating poverty, raising living standards, building world-class infrastructure, and meeting global climate commitments in a carbon-constrained world.“

Dr Ajay Mathur, Director General, said, “As India’s demand for energy grows, it will find its energy choices being influenced by both macroeconomic conditions and its policies to mitigate climate change. Further, issues of infrastructural, technological and institutional lock-ins of fossil fuels may impact transitions to renewables, apart from the lack of financially viable and scalable energy storage options. Another dimension of India’s energy security challenge is the demand for clean cooking and lighting fuels, particularly in rural India. This study delves into a range of critical cross-cutting issues to provide a coherent and integrated view of the key challenges facing India’s energy sector. The book therefore seeks to inform the national discourse on energy security.” Dr Ritu Mathur, Director at TERI and a lead author, adds: "As India scales up its renewable energy capacity, it must invest into conventional fuels wisely in order to ensure it doesn't advance the existing fossil fuel lock-in, and avoids the risk of infructuous investments into infrastructure and equipment."

The book has been published by SAGE Publications India and will be available across bookstores in the coming months.
- See more at:

grupo
18/3/2016
22:03
Oil prices retreat on profit-taking
Source: Xinhua 2016-03-19 04:01:23 [More]

NEW YORK, March 18 (Xinhua) -- Oil prices dropped Friday on profit-taking after a two-day rally.

U.S. oil rig count of this week added for the first time since this year, showed data released Friday by oil service company Baker Hughes.

Oil prices surged during the prior two trading days amid declining output and weaker U.S. dollar.

Crude production of the United States lost 10,000 to 9.068 million barrels a day last week, according to the Energy Information Administration (EIA)'s weekly report released Wednesday.

U.S. dollar decreased against other major currencies after a dovish Federal Reserve statement released Wednesday. Weak U.S. dollar made the dollar-priced crude less expensive and more attractive for buyers holding other currencies.

The West Texas Intermediate for April delivery moved down 76 cents to settle at 39.44 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery decreased 34 cents to close at 41.2 dollars a barrel on the London ICE Futures Exchange.
Editor: yan

grupo
17/3/2016
17:52
Is Royal Dutch Shell Plc In Danger Of A Colossal Correction?
Public Domain.
By Royston Wild - Thursday, 17 March, 2016 | More on: RDSB

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Shares across the mining and energy sectors have leapt broadly higher in recent weeks thanks to a robust recovery in commodity prices.

Fossil fuel leviathan Shell (LSE: RDSB) has been one of these beneficiaries. Since striking a 12-year trough of 1,277p per share back in January, the stock has leapt 33% to claw back above the 1,700p marker just this week.

Shell’s resurgence has been underpinned by a bounceback in the oil price. The Brent benchmark reclaimed the $40 per barrel marker earlier this month, up from the multi-year lows of $27.67 hit at the start of 2016.
Supply still surging

But this robust recovery has no tangible basis, in my opinion, with pumped-up buying activity now leaving the likes of Shell in danger of a shuddering correction.

Brent prices moved robustly higher following reports that Russia, along with OPEC members Saudi Arabia, Qatar and Venezuela, had floated the idea of a production freeze. This raised hopes of a much-needed output cut further down the line.

News surrounding a potential accord has gone quiet more recently, however, illustrating the colossal roadblocks on all sides. Not only has Russia previously played down chances of a freeze, citing the operational problems caused by the country’s harsh climate, but political faultlines across OPEC itself — and particularly between Saudi Arabia and Iran — also promise to scupper a deal.

Crude values have also benefitted from a weakening of the US dollar, brought on by falling expectations of Federal Reserve rate hikes in 2016. And further monetary loosening by the People’s Bank of China and the European Central Bank in recent weeks has also bolstered hopes of improving fossil fuel demand.
Demand in the doldrums

However, the steady stream of poor data from China illustrates the scale of the problem local lawmakers must overcome to prevent an economic ‘hard landing’, a catastrophic prospect for oil prices.

Recent trade data showed Chinese exports fall at their fastest rate since 2009 in February, down 25% year-on-year. And industrial production during the first two months of the year rose by just 5.4%, the worst figure since the 2008/2009 global recession.

With global crude inventories already at bursting point — US stockpiles hit fresh record highs for the fifth week on the bounce last week, at 523.2 million barrels — crude prices desperately need positive demand developments, or news of output cuts, in order to stay afloat.
What does this mean for Shell?

Well, Shell’s rocketing share price has left the business dealing on a monster P/E rating of 22.3 times for 2016, sailing above the benchmark of 10 times associated with high-risk stocks. The company is expected to suffer a 32% earnings slump this year, marking a second consecutive double-digit dip if realised.

And Shell does not have splendid long-term earnings prospects to justify this premium, either — the producer continues to slash capex budgets and sell assets to mitigate the effects of subdued oil prices, reducing its ability to eventually mount a comeback when crude prices improve.

With Shell’s weak balance sheet also expected to result in huge dividend cuts sooner rather than later, I believe there is plenty of scope for the firm’s share price to clatter lower.

But while I am far from convinced by Shell's investment appeal, I am pretty excited about the long-term prospects of the London-quoted dividend giant revealed in this special Fool report.

The Motley Fool's BRAND NEW A Top Income Share report looks at a hidden FTSE superstar enjoying breakneck sales growth across the continent, and whose ambitious expansion plans look set to power dividends still higher in the years ahead.

To discover more just click here and enjoy this exclusive 'wealth report.' It's 100% free and comes with no obligation.

Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Royal Dutch Shell. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

waldron
15/3/2016
18:57
Last month saw the birth of a new player in the global energy industry. In the midst of some of the toughest market conditions seen in decades, the joining together of Shell and BG creates a company of extraordinary strengths—a combination greater than the sum of our parts. It has been a period of great volatility. Although the oil price has fallen since the announcement, I remain convinced of the strategic and financial merits of the deal.

Over time, it is expected that the fundamentals of energy supply and demand will reassert themselves and the strategic and economic benefits of the deal will fully deliver for shareholders.

The deal reinvigorates Shell and will prove to be a springboard for further transformation. We now plan to shape a simpler, leaner, more agile and competitive company, focusing on our priorities for growth in liquefied natural gas (LNG) and deepwater.

The acquisition significantly boosts our oil and gas reserves and production capacity, and is expected to provide a strong injection to our operating cash flow. It also underpins our role as one of the world’s largest independent producers of LNG.

However, this deal is not about size. It is about quality. The combined value of our existing and potential energy projects creates a company more able to brave the cycles in the industry, and strengthens our ability to pay the dividend at any oil price that might reasonably be expected.

Shell has acquired major oil and gas projects in Brazil and Australia, and interests in other key countries. The company’s deepwater interests in Brazil were one of the major drivers of this deal. Brazil is a country we know well, through the exploration and production aspects of our business, our retail outlets and our low-carbon biofuel joint venture. It is quite simply a country of the highest strategic importance to us, a land with plenty of potential for growth.

Our global deepwater experience and technical expertise will help us build on our existing relationship with Brazilian national oil company Petrobras. In fact, the Libra joint venture already plans to develop a major oil field 170 km off the coast of Brazil. Our newly-acquired deepwater operations off Brazil will now add to current production from our Parque das Conchas oil and gas project.

We see potential for immediate benefits from our and BG’s complementary LNG operations in Australia and Trinidad and Tobago, as well as in Asia, a crucial and growing market. For example, India is an important country for Shell. With an emphasis on natural gas, we look forward to continuing to work with the government on how to meet the country’s long-term energy needs.

Other clear benefits include BG’s strong position in trading and shipping, which will bolster Shell’s capabilities, volumes and relationships in these core areas for the future development of the global gas market.

At $33 billion, our planned capital investment in 2016 is considerably less than the combined annual spending of both companies in recent years. Over the next three years, we plan to sell assets, as well as make significant savings in overlapping costs and reduced spending on exploration. We have already announced plans to reduce staff and contractors, which in these harsh economic times is a difficult but necessary step.

This timely rejuvenation of Shell sharpens our ability to adapt and thrive in an energy landscape that will continue to change. Business-as-usual isn’t good enough if the world is to tackle climate change, while making vital energy available to a growing population in need of a decent standard of living.

A global energy transition is under way. And Shell has to be part of this transition by producing more natural gas to replace coal in power generation; continuing to invest in the development of energy sources for the future, such as low-carbon biofuels and hydrogen as a fuel for transport; and by helping to develop carbon capture and storage. We will continue to advocate government-led carbon-pricing systems.

This is one of the largest acquisitions in UK corporate history and the biggest in the energy industry for many years. But we mustn’t forget that people make companies and we will make sure that our combined teams blend together smoothly. To create a more structured and transparent process for the integration of the companies, we have set up a transition organisation. Each existing part of Shell’s business will be swift to understand activities and support needed for our new assets and businesses.

We must now set about delivering the value we’ve promised. Ahead lie several months of detailed collaboration between colleagues from both Shell and BG to achieve full integration towards the end of this year. In my 32 years with Shell, I have sometimes heard people say, “This company is like an ocean-going tanker. It takes an age to turn.” With the completion of this deal, we have truly changed course, and are now going full speed ahead.

The author is chief executive officer, Royal Dutch Shell

waldron
15/3/2016
10:39
Will Royal Dutch Shell Plc Ever Recover To 2570p?
Photo: Royal Dutch Shell plc. Fair Use.
By Peter Stephens - Tuesday, 15 March, 2016 | More on: RDSB

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Shares in Shell (LSE: RDSB) have surged by 17% in the last three months, with the rising oil price being a key reason behind this. Of course, there’s still a long way to go before the price of black gold and the price of Shell reach their previous highs. In the case of Shell, its shares reached 2,570p in May of last year, which is their 10-year high. For them to hit that level again, they would need to rise by 54% from their current level.

On the one hand, this could be achieved before the end of the year if the company’s share price continues to rise at the same pace as it has done in the last three months. While this is entirely possible, it seems unlikely, since the price of oil may not increase at a rapid rate. That’s simply down to a major imbalance between demand and supply, which is showing little sign of rapidly reversing over the short term.

As a result, Shell’s comeback is likely to be a more gradual affair, although one that’s very much on the cards. A key reason for this is the company’s low valuation, which provides significant upward rerating potential. For example, Shell trades on a forward price-to-earnings (P/E) ratio of 12.2 and so for its shares to trade at 2,570p, it would require a rating of 18.8. While high, this isn’t unreasonably so, which means that even with Shell’s financial year 2017 profitability assumed to continue over the medium-to-long term, a share price of 2,570p is achievable.
Size matters

Of course, Shell’s net profit is unlikely to flatline in the long run. That’s at least partly because there’s the prospect of a higher oil price as the current level becomes uneconomic for a number of producers.

On this front, Shell has a major advantage. Due to its size and scale, Shell should be able to maintain and even gain market share over the medium-to-long term as higher-cost producers struggle to survive. This should allow it to maximise profitability and with it having the potential to engage in future M&A activity, Shell also has the capacity to boost its financial performance through acquisitions due to a strong cash flow and modestly leveraged balance sheet.

Therefore, Shell’s P/E ratio may not need to rise to as high as 18.8 in order for its shares to reach 2,570p. However, if the company is able to deliver upbeat profit growth, then a rising rating could be the end product as investor sentiment improves.

Clearly, Shell’s future is highly dependent on the price of oil and realistically, for its shares to hit 2,570p once more, the price of oil will need to move higher. However, even if it doesn’t, Shell has the financial firepower to become a more dominant player within the oil and gas space, which should lead to greater profitability and a higher share price in the long run. As such, buying Shell now seems to be a sound move.

Of course, Shell isn't the only company that could be worth buying at the present time. With that in mind, the analysts at The Motley Fool have written a free and without obligation guide called 5 Shares You Can Retire On.

The five companies in question offer stunning dividend yields, have fantastic long-term potential, and trade at very appealing valuations. As such, they could deliver excellent returns and provide your portfolio with a major boost in 2016 and beyond.

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Peter Stephens owns shares of Royal Dutch Shell. The Motley Fool UK has recommended Royal Dutch Shell B. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

waldron
12/3/2016
13:34
This week saw two oil companies take two very different approaches to climate change. One has recognised the impact that global efforts to cut emissions will have on its bottom line while the other denies climate action will have any adverse impact.

I’m talking about Shell and Chevron. Both behemoths in the energy world but with drastically opposite views sitting on either side of the Atlantic.

This week Shell released its latest annual report for the year up to December 2015. Reading through it, it quickly becomes clear that the company has started joining the dots on climate change following the Paris climate agreement and mounting shareholder pressure.

The risk of climate change to the company is disclosed in-depth: “Rising climate change concerns have led and could lead to additional legal and/or regulatory measures which could result in project delays or cancellations, a decrease in demand for fossil fuels and additional compliance obligations, and therefore could adversely impact our costs and/or revenue.”

It then goes on to talk about the impact increased attention to climate change across society will have on its operations, recognising that regulations on greenhouse gas emissions “will focus more on suppressing demand for fossil fuels. This could result in lower revenue.”

This is a much clearer recognition of the risks posed by climate change to a fossil fuel company than Shell had disclosed in the past.

Last year it stated things more simply: “Rising climate change concerns could lead to additional regulatory measures that may result in project delays and higher costs.” There was no mention of the legal risks or direct impact to the company’s profits.

Risk Disclosure

This shift in public risk disclosure is a clear recognition from Shell that policy action and legal risks are mounting. And after the past year Shell’s experienced, it’s a wise move.

Last May, the oil company’s shareholders voted unanimously in favour of a resolution that forced Shell to consider the possibility of a 2C world in its forecasting. Until that time Shell had been using a 4C to 6C global warming scenario to guide future business operations (twice the level of warming considered safe for the planet).

Then, in September Shell was forced to abandon its plans to drill for Arctic oil off the coast of Alaska citing high costs, uncertain regulatory environment, and the failure to find enough oil and gas to drill. After months of protests against Shell’s Arctic drilling, green campaigners declared this a victory for the environment.

Finally, it’s hard to ignore the impact of the ‘Exxon knew’ campaign. Last September it was revealed that Exxon knew that climate change was caused by humans burning fossil fuels long before it went on to promote climate science denial and misinformation campaigns. Based on this, New York and California have launched investigations into the oil giant.

And now, calls have come for a similar investigation to be launched into Shell – did it also deceive the public on climate change?

You can see how this all might push a company into acknowledging the very real financial, regulatory, and legal risks posed to it by climate change.

Chevron's Position

Meanwhile, at the other end of the spectrum Chevron is singing a different tune.

It told the Financial Times this week that the world will always need Big Oil. Rather than taking a more humble, forward-thinking approach, Chevron’s CEO John Watson boasted that “arguably, we’ve never been more advantaged than right now.”

As the FT writes: “The idea that curbs on greenhouse gas emissions put the long-term viability of the oil industry at risk has been gaining ground among investors, but John Watson doubts that climate policies will be a threat to Chevron.”

Do a quick search through Chevron’s most recent annual report for 2014 (presumably this year’s report for 2015 is in the works) and you’ll find that the company only mentions the words ‘climate change’ once – in the context of increased regulations on greenhouse gas emissions.

Chevron, along with Exxon, has a reputation for not engaging on climate change. While European oil majors including Shell signed a joint declaration supporting action on climate change ahead of the Paris COP21 climate conference in December, the two American companies were noticeable in their absence.

Public Pressure

Of course, Shell still has room for improvement – I won’t be letting it off the hook that easy.

The joint climate declaration was criticised for being little more than hot air given the industry's history of actively lobbying against climate action. Last April it was revealed that Shell successfully lobbied to undermine European renewable energy targets. Instead, it argued that Europe’s transition to a low carbon energy system should focus on gas expansion.

And as Shell's annual report states, its own internal forecasting assumes an average global temperature increase of 2-3C by 2100 – this is higher than the internationally agreed target of limiting warming to “well below 2C” with the aim of achieving 1.5C.

In fact, at COP21 David Hone, Shell's head of climate change, told Adam Ramsay of openDemocracy that oil companies don't see holding warming of the planet to two degrees as “a given”. This view is confirmed in its report, which reads: “Based on the above analysis, we believe current oil, gas and CO2 prices are too low to stimulate the fossil fuel substitution necessary to meet the Paris Agreement goal of limiting the average global temperature increase to well below 2°C.”

But what Shell’s recent admission does is it recognises that public pressure for action on climate change is only going to keep increasing. And, it shows that this pressure is starting to be felt at the very heart of the fossil fuel industry.

Photo: Kris Krug via Flickr

la forge
11/3/2016
18:32
Royal Dutch Shell plc Fourth Quarter 2015 Euro and GBP Equivalent Dividend Payments

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THE HAGUE, March 11, 2016 /PRNewswire/ --

The Board of Royal Dutch Shell plc ("RDS") (NYSE: RDS.A)(NYSE: RDS.B) today announced the pounds sterling and euro equivalent dividend payments in respect of the fourth quarter 2015 interim dividend, which was announced on February 4, 2016 at US$0.47 per A ordinary share ("A Share") and B ordinary share ("B Share").

Dividends on A Shares will be paid, by default, in euro at the rate of €0.4221 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by March 4, 2016 will be entitled to a dividend of 32.78.p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 32.78p per B Share. Holders of B Shares who have validly submitted euro currency elections by March 4, 2016 will be entitled to a dividend of €0.4221 per B Share.

This dividend will be payable on March 29, 2016 to those members whose names were on the Register of Members on February 19, 2016.

Taxation cash dividends

Dividends on A Shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A Share dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.

Shareholders resident in the United Kingdom, receiving dividends on B Shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.

The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the fourth quarter 2015 interim dividend of US$0.47 (32.78p or €0.4221) is US$0.05 (3.64p or €0.0469) per ordinary share and the dividend and tax credit together amount to US$0.52 (36.42p or €0.4690).

Royal Dutch Shell plc

waldron
11/3/2016
15:12
Royal Dutch Shell Publication of Prospectus Supplement
11/03/2016 11:40am
UK Regulatory (RNS & others)


TIDMRDSA TIDM39GW TIDM95UK TIDM39HE TIDM11BP TIDM95UM TIDM39IC TIDM11AV TIDM95UL TIDM72AF TIDM71XL TIDM83JB TIDMRDSB

Shell International Finance B.V. and Royal Dutch Shell plc

11 March 2016

Publication of Prospectus Supplement

The following documents (the "Documents") are available for viewing:

Prospectus Supplement dated 10 March 2016

Royal Dutch Shell plc Annual Report and Form 20-F for the year ended 31
December 2015

The Documents must be read in conjunction with the Information Memorandum dated
11 August 2015, as supplemented by the first supplement dated 24 August 2015,
the second supplement dated 29 October 2015 and the third supplement dated 15
February 2016 relating to the Programme. The Information Memorandum
constitutes a base prospectus for the purposes of Article 5.4 of Directive 2003
/71/EC as amended. Full information on Shell International Finance B.V. and
Royal Dutch Shell plc is only available on the basis of the Information
Memorandum.

The Documents are available for viewing at the `Financial Reporting' section of
Shell's website. To view the Documents, please paste the following URLs into
the address bar of your browser.

Prospectus Supplement dated 10 March 2016



Royal Dutch Shell plc Annual Report and Form 20-F for the year ended 31
December 2015



Other content available on Shell's website and the content of any other website
accessible from hyperlinks on Shell's website is not incorporated into, and
does not form part of, this announcement.

The Documents have also been submitted to the National Storage Mechanism and
will shortly be available for inspection at
.

Enquiries:



Shell Media Relations

International, UK, European Press: +44 (0)207 934 5550



Shell Investor Relations

Europe: + 31 70 377 3996

waldron
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