Shell Share Discussion Threads

[imperial3] 09/8/2015 11:45

Just out of interest when oil was $20 a barrel,what was the yield on the shares then?

[fjgooner] 09/8/2015 11:16

Hi Eisler,

I'm a bit confused by your bearish view. If as you say a doubling of the share price from these recent multi-year lows is not unreasonable then what you have on offer here for a £10,000 investment is:

Capital Gains in 10 years: £10,000
Dividend yield at 6% with reinvestment: £7,908

Total gain £17,908

I don't see why turning £10,000 into £27,908 in 10 years should leave you feeling bearish.

If it's merely down to a concern over the very low current price of crude, we all know that this is unlikely to persist much beyond 2016 for the reasons discussed on this BB and others time and again. And whilst these low oil prices persist, Shell is comparatively protected by its mix of operations in relation to its competitors and so will weather the storm rather well. Recall from the recent results that downstream operations earnings more than doubled to $2.96 billion in Q2 2015 from $1.35 billion in Q2 2014.

So whether on a short or long term view, RDSB seems a good bet to me. When the market finally comes to the realisation that the BG acquisition is actually a good strategic move (which it will as international power generators shift from coal to LNG) the rockets under the share price will really start.

Imagine what the FY2017 results may look like post-BG integration, especially if prices of crude have corrected by then.

[imperial3] 09/8/2015 10:36

Testing 45 dollars oil short term?

[eisler] 09/8/2015 01:55

Whilst I remain bearish for the forseeable, the pressure of record lows in exploration will push oil price higher in the next 18-24 months and at an astonishingly aggressive rate, back to $100, regardless of the global economic situation. I think that a doubling of share price in 10 years is not wholly unreasonable, despite my current negative position.

[nisbet] 07/8/2015 21:21

Director bought £600,000 worth ( 30,000 'A' shares.)

[imperial3] 07/8/2015 18:17

That is a good sign.

[irnbru2] 07/8/2015 16:44

Ok, cheers.

[topdoc] 07/8/2015 16:38

director has bought some shares

[irnbru2] 07/8/2015 16:08

Can someone give me a clue what this is about.

[shaggies_view] 07/8/2015 15:10

Q2 Div Dates....
2nd quarter 2015
Announcement date July 30, 2015
Ex-dividend date RDS A ADSs and RDS B ADSs (Note 1)
August 12, 2015
Ex-dividend date RDS A and RDS B shares (Note 1) August 13, 2015
Record date August 14, 2015
Scrip reference share price announcement date August 20, 2015
Closing of scrip election and currency election (Note 2) August 28, 2015
Pounds sterling and euro equivalents announcement date September 4, 2015
Payment date September 21, 2015

Should reach 1950p next week and then trip down to close the gap afte XD - IMHO/ DYOR.



Shaggy

[redartbmud] 07/8/2015 13:13

EI

No problem. Glad to have been of help.
Every morning, when I wake up, I check to make sure that I am still alive.

red

[essentialinvestor] 07/8/2015 13:02

red, that post reminded me to take my BP meds )

[imperial3] 07/8/2015 12:40

Well,he has a point,and I cannot argue with that.Needless to say,oil companies are slaves to oil and gas prices,and whichever way you look at it,currently there is a surplus to requirements,and this will keep a lid on a price rise.What is so attractive here, is the dividend,which income seekers crave for,considering the miserable returns elsewhere.I cannot recollect Shell ever cutting the dividend,even when oil prices were much lower than they were now.Maybe that is why canny investors,have been dipping their toes in recently.

[redartbmud] 07/8/2015 12:38

May not be around that long to see it.

[fjgooner] 07/8/2015 11:48

Today in The Telegraph



‘Oil shares should double by 2020’

A fund that applies the investment principles of the great Sir John Templeton is backing oil shares to bounce back

Extract:

You said you wanted shares that could double over the next five years. What are you buying to that end?

The “doubles” are going to come from the energy stocks. In my opinion it is a case of when the oil price will recover rather than if. I have been adding to BP and Royal Dutch Shell. I also hold Halliburton and Dragon Oil.

I have been encouraged by the measures taken by oil companies to cut unnecessary capital expenditure and focus on increasing productivity.

Crude oil is trading at $46 a barrel today and I think in five years’ time it will be in a range of $70 to $80. When this happens oil companies will become more profitable and see their share prices recover from today’s cheap valuations.

[essentialinvestor] 07/8/2015 10:53

Had some BP yesterday, got a few near the low.

[shaggies_view] 07/8/2015 10:51

Shaggies_view - 30 Jul 2015 - 10:07:21 - 3774 of 3865
RDSB - short to medium term 1950p target with an upside to 2000p.
Stoploss at 1750p.

I would say "on track".

Shaggy

[nicksig] 07/8/2015 09:33

wynmck - thank you

Good to see this cross 1900p. Let's hope it stays there

[la forge] 07/8/2015 09:15

By Rick Carew in Hong Kong and Brian Spegele in Beijing

HONG KONG-- Carlyle Group LP agreed to buy a majority stake in a Chinese oil-lubricants business from Royal Dutch Shell PLC, giving the private-equity firm a rare deal for control of a company in China's energy industry.

Shell, which is shedding assets across the globe amid low oil prices, said in a statement Friday it is focusing on its own lubricants brands within China. Shell didn't disclose the price it accepted for the 75% stake in the Tongyi oil lubricants business from Carlyle and Huo's Group, an entity controlled by Tongyi founder Huo Zhenxiang. Shell had purchased its stake in Tongyi from Mr. Huo in 2006.

The Wall Street Journal reported in December that Shell was shopping the asset, which had drawn interest from several global private-equity firms.

The sale by Shell comes as the company is rethinking its strategy in China. The oil giant has attempted to tap shale-gas reserves in western China, owns a stake in a south China petrochemicals facility and runs a chain of gas stations. The company is also exploring offshore reserves in the South China Sea.

But Shell has previously said it was scaling back investment in shale exploration in China's Sichuan province following several years of expensive challenges. The company, which is in the process of acquiring British natural-gas company BG Group PLC for about $70 billion, has said it aims to sell some $15 billion in assets by the end of this year.

For Carlyle, the Tongyi deal represents a bet that demand for lubricants in China will continue growing. A rising middle class has shown robust demand for buying cars in recent years, despite a downshifting of the Chinese economy. Chinese gasoline demand has also risen briskly this year, reflecting growing demand for passenger vehicles.

"The lubricants industry is a growing market in China due to increasing auto penetration," Carlyle Group managing director Herman Chang said in the statement.

Carlyle Group will own a majority stake in Tongyi after the deal closes, a Carlyle spokeswoman said. The parties said the transaction is expected to close by early next year.

Shell has been hard hit by slumping oil prices. The company said last month it planned to cut some 6,500 jobs across its operations--about 7% of its total workforce. Shell said second-quarter profit fell 33% from the same period last year, and has said it is preparing itself for an oil-price downturn that could last several years.

Write to Rick Carew at [e-mail] and Brian Spegele at [e-mail]

[moneysage] 07/8/2015 08:31

And before oil price rebounds!

[nw99] 07/8/2015 08:07

Buying ahead of the dividend I expect

[wynmck] 06/8/2015 13:19

nicksig-yes

[fangorn2] 06/8/2015 12:54

~Ayl,

You should be able to elect to have Barclays reinvest your divi in RDSB shares(ie outside of Shell's Scrip divi policy) as TD do..small fee of course for that.But it gets rid of the inconvenience of RDSA shares.