Shell Share Discussion Threads

[action] 23/3/2020 09:31

Monty what would you say if you see 800p ? LOL.

[florenceorbis] 23/3/2020 09:28

Price (GBX) 1,011.40 Var % (+/-) -2.15% (Down -22.20)

High 1,016.60 Low 987.60

Volume 3,808,650 Last close 1,033.60 on 20-Mar-2020

Bid 1,011.40 Offer 1,012.00

Trading status Regular Trading Special conditions XD

[montyhedge] 23/3/2020 09:22

Under 1000p a gift from the stock market gods.

[mister md] 23/3/2020 09:12

maybe that old motto, 'you don't sell Shell' still applies after all ;)

[adyfc] 23/3/2020 09:10

This is holding up amazingly well today. I thought sub £9 with the dow down Friday, futures down and oil down.

[andy flower] 23/3/2020 09:10

Absolutely agree. Look at SARS no vaccine yet but no new cases since 2004 without vaccination. For the two years it was around and it had a higher mortality rate. By end of 2020 Shell will mop up some of the Shale income routes. I am even happy to give up divi for 2020 in return for the very high returns fr 2021.

[montyhedge] 23/3/2020 09:07

Fund managers rely on three big dividend payers, Shell, GSK, HSBC. They will all pay. I bet under pressure to pay from the city.

[hernando2] 23/3/2020 09:05

If this is still as bad in 18 months we are gong to be in a completely different world, the big issues will be around food , water, power and so on.

Who will pick the crops this year? sure we have mechanisation but that doesn't work for all crops.

I am hoping that the virus can be brought under control and some sort of treatment is widely available with 18 months and gradually things will return to a semblance of normal normal.

I bout a small tranche this bring as i think Shell will pay the dive and that life will get back to near normal

Its like a John Whyndham novella ..

[crossing_the_rubicon] 23/3/2020 08:52

Yep,cutting costs, ending buyback all to ensure cash preservation to cover the Divi for 12-18 months out imo.

If POO is still in 20's in 18 months time, we're all screwed as that'll mean demand is reflective of little economic activity.

Unless we see major "policy changes"

A fall of the house of Saud for example?

A Democrat in WH starting a war with Russia for example..

Who knows that the future holds but we have crossed the rubicon..

No turning back now.

[sogoesit] 23/3/2020 08:45

An interesting issue from the RNS today is what is missing from the statement.
If you've spotted it it is not surprising given that in any commodity price war the strategic response is to maintain, or increase, production.

However, in the gas market (contracted P/L and LNG) the market stress response will first come from buyers. It will be buyers who start making claims of Force Majeure against contracted deliveries as producers are protected by "Take or Pay".

There were some claims of FM against some LNG producers, from CNOOC I believe, last month, or earlier this month, but these claims have been rejected.

[stockhunters] 23/3/2020 08:27

oil down 4%, down another 10% after market hours yesterday aswell

[poikka] 23/3/2020 07:59

You bet it will please the Kremlin, johnwise, but undoubtedly they're hurting too, and from a pretty weak start re their economy.

Only time will tell.

[waldron] 23/3/2020 07:56

European markets head for lower open as the coronavirus continues to take its toll
Published Mon, Mar 23 20202:05 AM EDT
Holly Ellyatt
@HollyEllyatt
Key Points

London’s FTSE index is seen opening 131 points lower at 4,881, Germany’s DAX is expected to open 496 points lower at 8,362 and France’s CAC is seen 208 points lower at 3,804, according to IG, while Italy’s FTSE MIB is seen 699 points lower at 14,609.

[johnwise] 23/3/2020 07:51

Do Saudi Arabia And Russia Really Want To Kill U.S. Shale?

Earlier, pressured by cheap Saudi oil in 2015, the US shale oil industry reduced its breakeven point from $65 to $46 a barrel. With oil now selling for $30 a barrel, the industry faces a renewed challenge. If this continues, history will repeat itself with many small, independent US drillers filing for bankruptcy because of their failure to repay loans from banks, which had accepted untapped oil reserves as collateral. That development will undoubtedly please the Kremlin.

[sogoesit] 23/3/2020 07:46

frazboy - thanks.

Buybacks halted; good news imv.
Cash retention protects the dividend.

Will spud get his 850 ;-)?

[ftl] 23/3/2020 07:46

Royal Dutch Shell plc

The Hague, March 23, 2020 - As the COVID-19 virus spreads across the world - seriously impacting people’s health, our way of life and global markets - Shell is putting the safety and health of our people and customers first, along with the safe operations of all our businesses.

At the same time, we are taking decisive action to reinforce the financial strength and resilience of our business so that we are well-positioned for the eventual economic recovery.

“As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business,” said Ben van Beurden, Chief Executive Officer of Royal Dutch Shell. “The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past.”

“In these very tough conditions, I am very proud of our staff and contractors across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and our customers.”

In order to deliver sustainable cash flow generation, Shell is actively managing all our operational and financial levers – from focusing on maintaining safe and reliable operations each day to reducing capital spend and operating expenses.

Today, we are announcing that we have embarked on a series of operational and financial initiatives that are expected to result in:

reduction of underlying operating costs by $3-4 billion per annum over the next 12 months compared to 2019 levels;
reduction of cash capital expenditure to $20 billion or below for 2020 from a planned level of around $25 billion; and
material reductions in working capital.
Together, these initiatives are expected to contribute $8 - 9 billion of free cash flow on a pre-tax basis. Shell is still committed to its divestment programme of more than $10 billion of assets in 2019-20 but timing depends on market conditions.

The Board of Royal Dutch Shell has decided not to continue with the next tranche of the share buyback programme following the completion of the current share buyback tranche.

We will continue to review the dynamically evolving business environment and are prepared to take further strategic decisions and consider changes to the overall financial framework as necessary.

In the current environment, Shell’s financial resilience is fundamental to continued investment in our strategic priorities. Shell seeks to maintain strong financial credit metrics and ensure it has a robust balance sheet to manage volatility. Shell’s liquidity remains strong, with around $20 billion in cash and cash equivalents, $10 billion of undrawn credit lines under our revolving credit facility and access to our extensive commercial paper programmes.

Read about Shell’s global response to COVID-19 at

Shell will publish its next quarterly update note on 31 March 2020 and release its Q1 2020 results on 30 April 2020.

Notes to editor

Divestments of around $5 billion of assets were completed in 2019
Current share buyback tranche refers to the $1 billion share buybacks announced on 30 January 2020
Shell is rated AA- with negative outlook by S&P and Aa2 with stable outlook by Moody’s

[xxxxxy] 23/3/2020 07:40

Crude oil slightly up just now. But energy requirements must now be less surely. And come round to thinking buybacks good right now. There you go. The cure for the virus will kill more than the virus itself. Armageddon of economies will lead to wars and famine and other diseases and many more will die. Politicians have list the plot. Darwin Rules OK

[32campomar] 23/3/2020 07:32

I agree with you, having read it the moves in total free up enough cash to almost guarantee the dividend. I believe this should be positive for shell, but who knows how the market will interpret this at the moment!

[amaretto1] 23/3/2020 07:31

What u talking about ? Demand has fallen off a cliff Down 80 percent im hearing World demand

[montyhedge] 23/3/2020 07:29

Good news then, I'm convinced dividends will be paid now. The savings from buybacks will do it.

[bennodean] 23/3/2020 07:27

Re the 1975 Oil Glut comment above. Demand is so much higher now.

So when Corona is sent packing... and it will, just like the LAST PANDEMIC (Swine Flu) then the glut gets worked through. And we revert to mean.

Death rate is truly sad, but the recovery rate is not getting enough air time.

[32campomar] 23/3/2020 07:24

Why would it not be true! Read the RNS!