Shell Share Discussion Threads

[essentialinvestor] 20/1/2016 08:37

Small amount more at 1308.

[zyzzyva] 20/1/2016 08:33

the last time oil price was at these levels in 1993, BG shares were around 2.50. and i can be pretty sure they didnt have $10bn net debt back then. BG is leveraged into this commodity crash. imo the shares could be £1.50 is this deal is called off.

[zyzzyva] 20/1/2016 08:19

the only real BG numbers were the Q3 results which showed debt rising by more than $1bn over just 3 months. that was when the oil price averaged $51. we know the Brent oil price averaged $45 in Q4 and is $28 now and tumbling

[essentialinvestor] 20/1/2016 08:13

Just added back what I sold yesterday at 13.71 for 13.128

Will add again lower.

[philo124] 20/1/2016 08:05

Full year production - surely a bad typo.

[zyzzyva] 20/1/2016 07:59

fact is average brent price fell in Q4 to around $45 and it is now $28 and sliding. this deal is a disaster for shell shareholders.

[zyzzyva] 20/1/2016 07:57

BG has not disclosed the net debt. leave all the nasty stuff out of the statement eh? therefore you cannot have any confidence in cash flow. the earnings, EBITDA and net cash flow from operating activities numbers can mean anything, can easily be manipulated.

[84stewart] 20/1/2016 07:50

Shell v BG updates out BG slightly ahead in performance

[rcturner2] 20/1/2016 07:46

Both Shell and BG results seem fine to me.

Some embarrassingly weak minded people posting on here.

[w1ndjammer] 20/1/2016 07:45

Zyzz

its going to be a bad day for you shame.........

Dividend here for keeps

deal completion only a matter of weeks away.

WJ.

[nw99] 20/1/2016 07:28

Dividend commitment for 2016 a really big thing here

[sogoesit] 20/1/2016 07:22

Q4 statement gives a picture of a pretty robust company.
Re-iteration of dividends at $1.88 for the coming year.
Asset sales going well, surprisingly. And looks like they will quite easily pay for the acquisition and quite soon!

[togglebrush] 20/1/2016 07:21

RNS out ... Q4 Update out... Steady has she goes

[sogoesit] 20/1/2016 06:29

Gail wants a "perfect world" it seems from your article, Shaggy.
The answer, for her case, must be OPEC (as price regulator).
So:
Stability = OPEC
But:
OPEC = Instability!

Hmmm...

[shaggies_view] 20/1/2016 05:32

Love this article from Gail - 'Why oil below $30/bbl is seriously bad news for the Global Economy'...and it is here to stay longer than many 'experts' think.

hxxp://ourfiniteworld.com/2016/01/19/why-oil-under-30-per-barrel-is-a-major-problem/

Shaggy

[sogoesit] 20/1/2016 05:04

Well, let's try again:
The future's orange... but it may not be bright!

[shaggies_view] 20/1/2016 04:33

lol Blue vans - different business diku. This ones orange...
Shaggy

[sogoesit] 20/1/2016 04:26

I object to the use of Engineer with a capital E...
Or are they unemployed Engineers? I thought there was a shortage in the UK?
;-)

[diku] 19/1/2016 23:46

I think job cuts in BG coming...too many Engineers driving those blue vans....

[zyzzyva] 19/1/2016 21:54

BG trading statement tomorrow morning. it will be interesting to see what they can spin. as i pointed out before BG was forced to add more than $1bn to its net debt in Q3 as profits and cash flows plunged. brent oil averaged $51 in Q3, and this fell to $45 in Q4, and now it is $29 and going lower.

[imperial3] 19/1/2016 21:29

The worst is far from over,commodities have further to fall,as we go into the new year.The more oil and gas slump in price,the more that confidence will be shattered in the BG deal.This will cause the big shareholders to reconsider,if they do not want to lose any more money than they have already.

[zyzzyva] 19/1/2016 20:29

imo BG would be a forced seller and perhaps shell could buy the LNG assets from BG without buying the entire BG?

[zyzzyva] 19/1/2016 20:28

those guys buying BG as a cheap way into shell - be very careful, the oil price crash continues and the big shareholders might yet come to their senses and vote no. imo BG shares could then crash to £2 - BG has $10bn of debt and is significantly burning cash at current energy prices and last time oil prices were at this level in 1993 BG was trading around 280p

[zyzzyva] 19/1/2016 20:25

RCTurner2 the deal is massively value destructive for shell shareholders at current energy prices. it doesnt matter why they are buying it. imo the deal is value destructive even at $50 oil price. standard life was against it at much higher oil prices and shells management originally said it made sense at $70 oil price (implying it doesnt at below $70).


David Cumming, head of equities at Standard Life Investments, said: “We have concluded that the proposed terms of the acquisition of BG are value destructive for Shell shareholders. This view is based on the downside risks to Shell’s oil price assumptions plus the tax and operational risks surrounding BG’s Brazilian asset base. Consequently we shall vote against the deal.”

[zyzzyva] 19/1/2016 20:22

imo the $3.5bn cost savings do not stack up. BG is in a mess at the current energy prices.