| Date | Subject |
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29/7/2021
11:32 | smurfy2001: Shell hikes dividend payout for shareholders by 50% and returns £1.4bn in share buyback as oil prices an profits soar
https://www.dailymail.co.uk/money/markets/article-9838859/Huge-spike-oil-prices-lifts-Shells-profits-dividend.html
==
Mr Red Tick, another post to tick down get on with it, you're very slow this morning was it a tiring day red ticking yesterday 😂 don't sweat it out too much.
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29/7/2021
11:03 | smurfy2001: Could be promising for BP.
Shell raises dividend by almost 40% amid soaring oil prices
https://www.theguardian.com/business/2021/jul/29/shell-raises-dividend-soaring-oil-prices
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13/7/2021
06:43 | hellscream: any chance us shareholders gonna get part of our dividend back.. feels like they are withholding cash owed to us.
feels like they are giving us austerity, funny the government last year advised both shell and bp to cut the dividend. only majors to do it too.
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04/7/2021
01:57 | garycook: bountyhunter,Where do you get the 6% yield on BP.
BP Current Yield Details - 4.72%,but better than 0.3% as you quote.
Dividends Declared in Previous 12 months
Year End Type Announce Date Ex-Dividend Date Payment Date Dividend
12/2020 Q2 04-Aug-20 13-Aug-20 25-Sep-20 $0.0525
12/2020 Q3 26-Oct-20 05-Nov-20 18-Dec-20 $0.0525
12/2020 Q4 02-Feb-21 18-Feb-21 26-Mar-21 $0.0525
12/2021 Q1 27-Apr-21 06-May-21 18-Jun-21 $0.0525
Total: $0.21
Dividend Yield = Total Dividends Current Share Price
= $0.21 321.40p
= 4.72%
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03/7/2021
17:28 | bountyhunter: Bought some of these in the dip yesterday as I don't believe the rocketing oil and gas price has been reflected in the still very lowish share price here yet. Even if the share price stays about the same the ~6% Divi sure beats 0.3% in the bank for tied up savings and that's if BP stick to the full 50% dividend cut after what are likely to be earnings well ahead of expectations to be announced in the interims on 3 August, just a month away now. They may wish to keep the Divi the same to enable further investment in a green low carbon agenda which would be fine with me as you can't complain with ~6% yield anyway.
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27/6/2021
08:20 | marktime1231: How do you know if buybacks are delivering value or not, they haven't really started yet, so far there has just been a quick $500M to neutralise the share award scheme.
Looney has stated he is intent on a serious buyback programme using surplus cash as a priority in the next few years, I imagine that to be multi-billions starting in Q3 of this year. Give him a chance. Battering on about the need to raise dividends already, that would be really grating. The expectation is that they will rise in due course but for now the priorities are to reduce debt, invest in new energy, and buyback while stock is cheap for the long-term benefit.
In the meantime a safely covered 4-4.5% dividend is probably enough to keep most big investors happy, even if we as private investors would like a higher income now rather than wait a couple of years. Looney has not ruled out a progressive dividend when he has delivered the other measures.
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10/6/2021
15:21 | adrian j boris: masterinvestor
Can the Shell and BP share prices recover after underperforming the FTSE 100?
By Robert Stephens, CFA 10 June 2021
2 mins. to read
Robert Stephens, CFA, discusses the outlook for the UK’s two oil majors after a disappointing year.
The performances of BP (LON: BP) and Shell (LON: RDSB) have been hugely disappointing over the past year. While the FTSE 100 index has surged by around 10%, the share prices of the two oil and gas majors are down by 12% apiece.
A key reason for their underperformance of the index could be concerns about their reliance on fossil fuels. Covid-19 appears to have accelerated the trend towards cleaner forms of energy, as well as increasing the popularity of ESG investing.
Oil and gas prospects
However, the prospects for the oil and gas industry may be more positive than the share price performances of Shell and BP would suggest. Certainly, demand for oil and gas will decline over the coming decades, as major economies, including the UK, target net-zero emission targets. However, in the short run, the outlook for oil and gas could be encouraging for two reasons.
First, the global economy is widely forecast to deliver strong growth in 2021 and 2022. According to the IMF, it is expected to grow by 6% this year and 4.4% next year. Historically, oil prices have been positively impacted by buoyant economic performance. The asset may even become more popular among investors who are searching for an inflation hedge should economic growth cause a rapid rise in the price level.
Second, the adoption of cleaner forms of energy is likely to be an evolutionary process, rather than a revolution. There is no guarantee that current targets, which are ambitious in many cases, will ultimately be met. Indeed, the International Energy Agency (IEA) forecasts that demand for oil will be 4.4% higher in 2026 than it was prior to the pandemic. Alongside this, the shift within the energy sector from fossil fuel to low-carbon assets may mean that the supply of oil is somewhat limited. This could have a positive impact on its price.
Attractive valuations
Shell and BP have ambitious strategies to pivot towards low-carbon assets over the long run. In reality, the cost, returns and ultimate success of those plans is likely to remain a known unknown for a prolonged period.
They could provide investors with high and sustainable returns over coming decades. Or they may leave both companies crippled with high levels of debt and asset bases that offer lower returns than have been previously available via fossil fuel assets. In this latter scenario, the ability of the two companies to deliver dividends or share price growth could be severely limited.
However, the valuations of the two stocks suggest that investors are factoring in a period of financial difficulty and risk as they embark on their strategy shift. Shell has a price-to-book ratio of 0.9 and a dividend yield of 3.5%, while BP trades at just a 20% premium to net asset value and offers a dividend yield of 4.8%.
These figures suggest that the two stocks offer wide margins of safety that may not reflect their potential to deliver improved financial performance should the oil price rise in the likely global economic recovery. They may also price in a failure to pivot towards low-carbon assets that does not materialise. As such, they could offer good value for money on a risk/reward basis relative to other FTSE 100 stocks in the current bull market.
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08/6/2021
21:00 | ashleyjv: First quarter interim dividend for 2021
Payments of dividends in sterling
On 27 April 2021, the Directors of BP p.l.c. announced that the interim dividend for the first quarter 2021 would be US$0.0525 per ordinary share (US$0.315 per ADS). This interim dividend is to be paid on 18 June 2021 to shareholders on the share register on 7 May 2021. The dividend is payable in cash in sterling to holders of ordinary shares and in US dollars to holders of ADSs. The board has decided not to offer a scrip dividend alternative in respect of the first quarter 2021 dividend. Dividend reinvestment plans have been made available for this dividend for ordinary shareholders and ADS holders (subject to certain exceptions) to receive additional bp shares.
Sterling dividends payable in cash will be converted from US dollars at an average of the market exchange rate over the three dealing days between 3 and 7 June 2021 (GBP1 = US$1.41441). Accordingly, the amount of sterling dividend payable in cash on 18 June 2021 will be:
3.7118 pence per share.
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04/6/2021
18:24 | the grumpy old men: Is Royal Dutch Shell Stock a Buy?
Shell had a solid plan for the future. Or at least it did until things got a little more complicated. What should investors do now?
Reuben Gregg Brewer
(TMFReubenGBrewer)
Jun 4, 2021 at 11:25AM
Author Bio
Royal Dutch Shell (NYSE:RDS.B) is one of the largest integrated energy companies on Earth. That has put it in the crosshairs of environmentalists looking to take on global warming. The company has started to do something about this issue, but it may not be enough to satisfy detractors. That could make life much more difficult for Shell and its shareholders.
The big change
Shell made the very difficult decision in 2020 to cut its dividend by a huge 65%. There were two reasons why the giant energy company took this step. First, drilling for oil requires a lot of capital investment, and at the time weak oil prices were making it difficult to fund spending needs. Second, the company announced plans to alter the makeup of its business, shifting toward growth in cleaner energy businesses and reducing its emphasis on oil.
A smiling person in front of wind turbines.
Image source: Getty Images.
That second announcement was notable, as it meant that Shell had heard what investors, governments, and environmentalists were saying about reducing carbon and it was taking action. Some of its peers, notably Chevron and ExxonMobil were, and for the most part still are, dragging their feet on this front. Shell's goal is to get to net zero carbon by 2050, with interim goals of a 20% reduction by 2030 and a 45% reduction by 2035.
There are a lot of moving parts to this plan, but it entails reducing oil production, increasing natural gas exposure, and ramping up investment in renewable energy. Shell is not new to the clean energy space either, so it has some expertise to build off of. The goals seem reasonable, but there's one key thing investors have to remember -- the oil business, though shrinking, is helping to fund the transition to a cleaner future.
A wrench in the gears
Everything seemed lined up for Shell. It had even gotten back to increasing its dividend, now having raised it twice since the cut. That was meant as a sign to investors that the company was financially strong and could be trusted to address clean energy concerns and maintain a growing dividend over time. Based on shareholder proxy voting, investors appeared pleased with the direction the company was heading. Then Shell lost a court case in Europe around its environmental impact.
TOT Dividend Per Share (Quarterly) Chart
TOT Dividend Per Share (Quarterly) data by YCharts
The big takeaway from the case is that Shell was told to increase the pace of its clean energy transition. The court mandated target for carbon emission reduction was 45% by 2030. That pushes forward the 2035 goal by five years, but means more than doubling the carbon reduction originally planned for 2030. This is a massive change.
The company responded by outlining the steps it has taken so far and plans to take in the future. And by saying it will appeal the decision. That is the logical step for Shell, but investors need to consider what happens if it loses this fight. Most notably, it will likely have to divest more oil assets to meet the court's mandate. That means less revenue to support the shift toward clean energy. In turn, this will probably lead to increased use of the balance sheet to fund the transition. That is not an ideal solution.
What to do about it?
At this point, nothing is likely to happen in the near term. However, investors looking for a long-term energy investment might want to step back here and rethink how they go about putting their money to work. This isn't to suggest that Shell is a bad company, only that the court loss raises the risks for this energy company in an unpredictable way.
The best alternative right now is likely Total (NYSE:TOT), which is going down a similar clean energy path, has maintained its dividend, and has shareholder support for its transition. Alternatively there is BP, but the company's 2020 dividend cut and high leverage compared to peers are issues that some may, justifiably, find concerning. That said, be prepared, if Shell does end up losing this fight, it is likely that other energy names will find themselves facing similar problems down the line.
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26/5/2021
11:29 | marktime1231: In which case cocopah maybe Looney has got the medium term strategy right, buyback now with spare cash while the share price is at a big discount, start to develop the dividend in a couple of years time when value has been concentrated? The long term strategy to greener energy while persuading the world to appreciate the need for gas in the transition sounds right to me too. BP starting to look a safe place to be invested?
Yield under 5% might look pedestrian in the meantime, but if the share price appreciates at 10-20% a year and if there is a chance of a restored 6% yield to come well ... in two minds, I was put off by the rumour of a dividend freeze until 2025, but that recent report of Looney talking about possibilities for a progressive dividend later in 2022 (if oil and gas prices hold up) is encouraging.
Either way BP is too cheap to be selling down under 350-360p. The benefits of debt reduction, strong prices and buybacks will feed through, and if the yield falls away to 4% pressure from all quarters on Looney to progress the payment will grow.
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PLUS1
