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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Shell Plc | SHEL | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| -12.00 | -0.41% | 2,895.00 | 16:35:12 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2,907.00 | 2,888.00 | 2,922.00 | 2,895.00 | 2,907.00 |
| Industry Sector |
|---|
| OIL & GAS PRODUCERS |
| Top Posts |
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Posted at 09/4/2024 16:52 by jrphoenixw2 From rolling broad-sheet news:4:31PM Shall is ‘massively undervalued’ says ex-boss One of the FTSE 100’s largest companies is “massively undervalued” according to its former boss. Ben van Beurden, the Shell chief who led the oil company when it axed its listing in the Netherlands, has suggested it could benefit from switching to a US listing. Ben van Beurden told the Financial Times that oil companies listed in America benefited from higher valuations and “more positive” attitudes from investors. He said: "All these factors conspire against the [companies] listed in Europe. And I think increasingly that will be a problem .̴ |
Posted at 08/4/2024 14:22 by xxxxxy Shell has threatened to quit the London Stock Exchange for New York in what would be the biggest blow to the UK's struggling stock market to date.Wael Sawan, chief executive of Shell, said the oil and gas giant was looking at "all options" for its listing amid concerns it was under-appreciated by investors.He said: "I have a location that clearly seems to be undervalued."...Dail |
Posted at 15/3/2024 22:52 by jrphoenixw2 Don’t sweat windfall taxes – energy stocks will soon soarAll signs point to oil prices rising – and that will pump up share values Ken Fisher 15 March 2024 Ken Fisher founded Fisher Investments and built a fortune estimated at $6.3bn. He writes a monthly column for Telegraph Money Don’t let the FTSE 100’s flat start to the year blind you. This beautiful, global bull market is strong, an early advance on the good-to-great 2024 I foresee. But then, there is energy. The sector’s lack of energy partly explains UK stocks’ tepid start, while the bears claim Britain’s extended “windfall tax” on gas and oil portends worse ahead. Wrong! The energy sector should shift from laggard to leader later this year – shocking almost everyone. Here’s why. After energy outperformed in 2022, riding the crest of spiked oil prices as Putin invaded Ukraine, most envisaged ongoing global supply shortages, stoked by OPEC+ supply constraints, falling UK production and a reaccelerating, post-Covid China. These, supposedly, would send oil prices spiking again – powering up energy companies. So, few people expected energy stocks’ weakness in 2023. Globally, they fell 3.3pc while world stocks soared 16.8pc. Yes, UK Energy’s 10.8pc rise beat the overall 7.7pc increase made by British shares, but that was globally an outlier, partly due to liquefied natural gas (LNG) arbitrage profits. Globally, energy investors got trounced in 2023. By early 2023, oil prices had quietly fallen fully a third from March 2022’s high. Global production obliterated shortage fears and seemed set to keep expanding in Norway, Guyana and North America. President Biden’s temporary ban on new federal land leases didn’t bite – US output actually topped record highs. Hence, high and rising production globally constrained oil prices to between $70 and $95 per barrel, stymieing global energy firms, whose profits chiefly rise and fall with crude prices. Now everyone, again wrongly, extrapolates this lag throughout 2024. Fund flows, money manager surveys and valuations all show that investors have slashed exposure to the energy sector. This sour sentiment shift goes against the fundamentals. Oil prices should rise later this year, refuelling energy firm profits – and pumping share prices. Why? It isn’t OPEC+ production cuts. Energy stocks and oil prices baked those in long ago. They are mere symbolism now – not real-world limits. Ditto for Mr Biden’s pausing of new LNG export terminal permits, which won’t stop already permitted and under-construction terminals from easily supplying the planet. North American LNG export capacity should double later this decade. Nor is it the gradual decline in UK and North Sea output, this is old, widely known news. No, this is about simple incentives and normal market behaviour. When energy companies saw higher prices, they boosted production to capitalise. Now US producers are completing wells far faster than drilling new ones, running down America’s “fracklog&rdqu Down 17.9pc year on year, the dwindling fracklog means less inventory can come online quickly. The low-hanging fruit are picked. But producers aren’t replacing them. Dissuaded by mostly low-end prices and higher borrowing costs, oil producers got lean. Now, after years of consolidation, global mega-drillers dominate the market. With their more judicious production targets reigning, US rig counts fell from 621 at the end of 2022 to the current 506. US drilled wells fell, down 18.6pc year on year through January. Production typically lags drilled wells by about six months, so soon overall production will slow significantly. Meanwhile, many people vastly underestimate demand, while at the same time overemphasising areas of minor economic weakness like Germany and the UK. Yet better-than-expected growth in Britain and Europe, solid growth in America and stable demand in China will result in stronger-than-foreca For that reason, oil prices will climb. Not sky-high, but challenging the upper end of 2023’s range – boosting energy sector earnings and the FTSE. It is the oil price, not production volume, that drives profits and oil stocks and determines when and whether companies will recoup high drilling and exploration costs. Higher oil prices, married with cost-consciousness, should create an earnings bonanza. This should help big global oil companies, Britain’s energy stocks and the FTSE, as they benefit from strong balance sheets, low-cost production and integrated business models. They are best positioned to capitalise when oil prices rise but don’t skyrocket. Don’t sweat Jeremy Hunt’s new Budget, which extends oil and gas “windfall&rdqu These taxes impact domestic production and revenue only. Given just 13.8pc of UK energy company revenue is actually from Britain, windfall tax worries are mostly hot air. You may ask: “But won’t pricey oil mean high petrol prices – and reignite inflation?” Perhaps incrementally. But they are just one small factor among many, likely offset by the fall in the energy price cap. So, enjoy this global bull market. And watch UK stocks thrive later in 2024, as they “energise&rdqu |
Posted at 02/1/2024 11:02 by pj84 From the article below on the dividends being be paid by the 5 major oil companies: -"Shell angered climate campaigners in November by setting out plans to pay shareholders at least $23bn in rewards this year, despite falling profits. The sum is more than six times the amount Shell planned to spend on renewable energy last year. Shell’s investor windfall follows one of the biggest annual profits in UK corporate history for 2022 when the oil company revealed profits of $40bn but weaker commodity market prices in 2023 mean its full-year earnings are expected to be lower." |
Posted at 13/12/2023 20:39 by pj84 "ShellIt seems that the main reason to buy Shell (GB:SHEL) remains its cheap valuation, especially compared with its US peers. Invesco Comstock managers Kevin Holt, James Warwick and Devin Armstong are the latest top-performing investors to have seized upon the shares’ low rating, buying into the oil giant in August. ‘Shell has underperformed recently, which allowed us to initiate a position in this top-tier oil and gas firm,’ they said in their latest update to investors. They are three of 55 Elite Investors backing in the shares, resulting in Shell’s status as the top London-listed stock in the Citywire Elite Companies rankings. Jon Bosse and Jujhar Sohi, who own Shell in their Nuveen Large Cap Value and Multi Cap Value funds, said the shares were ‘exceptionally undervalued’, adding that chief executive Wael Sawan was ‘driving positive change and a commitment to shareholder returns’ in an update to their investors. These shareholder returns are in the form of growing dividend and share buybacks, with Shell’s investment strictly controlled to generate plenty of cash flow. Oil and gas and production and trading profits are under pressure from an oil price which has been drifting lower since the summer. However, over the medium term, Shell should benefit from being one of the leading integrated liquified natural gas (LNG) players as gas remains a key transition fuel for countries aiming to reduce their carbon dioxide emissions. With Shell shares trading on just 7.5 times forecast earnings for the next 12 months, it’s not hard to to see why management is growing buybacks. Shell’s top Elite Investors Elite Investor Fund Size in fund Rank in fund Steven Magill UBS UK Equity Income Fund 8.3% 2/36 Martin Walker Invesco UK Equity 6.7% 2/36 Oliver Kelton WS Ardtur Continental European Fund 6.5% 3/24 Sources: Citywire / Morningstar, latest holdings data." |
Posted at 22/11/2023 10:00 by xxxxxy The Dramatic Downfall of ESG InvestingBy Tsvetana Paraskova - Nov 21, 2023, 6:00 PM CSTInvestors withdrew $14.2 billion from U.S. sustainable funds over the past year.Global renewable energy funds experienced record outflows in Q3 2023, with stocks plummeting amid rising costs and market challenges.Political and regulatory changes, including challenges to the Biden Administration's ESG rule and SEC's anti-greenwashing efforts, contribute to the decline in sustainable investing.... OilPrice.com |
Posted at 08/6/2023 14:17 by jrphoenixw2 Questor column@Telegraph today:'Commodity stocks such as this oil giant could be a useful hedge against inflation Questor share tip: it is rare for oil demand to drop, even during recessions, and the company's shares look cheap. This column makes no apology for returning to the subject of Shell so quickly after its last look a month ago. That came after May’s bumper first-quarter profits statement and the occasion this time is last weekend’s Opec+ meeting in Vienna. Saudi Arabia’s attempts to bend the oil price to its iron may not be proving entirely successful, but there are still good grounds for thinking the oil price is well underpinned in the $70 to $80 a barrel range, enough for Shell to keep churning out dividends and share buybacks to income-seeking investors (even if climate campaigners and portfolio builders who run strict environmental, social and governance screens may despair). The influence of Opec+ is not as great as investors might believe, given that the members of the oil producers’ cartel and its allies, such as Russia, control less than half of global oil production between them. This may explain why oil traders are hardly running for cover even as Riyadh sanctions a cut in production of one million barrels of oil a day, or 1pc of global output, from July 1 and gets Opec+ to extend the 1.2m barrel a day cut announced in April into 2024. Reports of dissatisfaction among other Opec members who are itching to increase output, notably Nigeria and Angola, may also be dampening the impact of the Saudi Arabian initiative. An even bigger issue facing the oil price may be ongoing concerns over the possibility of a global recession, or at least a slowdown. In this context it is intriguing to note that equity markets seem content to price in a so-called “soft landing” or even no recession at all, so either share buyers or oil traders are going to be wrong at some stage. And if it is oil traders who are wrong, then heaven help them for two reasons. First, oil demand could come in higher than expected. Second, traders have reportedly been building up short positions against crude, so if the price starts to go against them, they may need to buy oil to close out and that could give the commodity’s price a lift. Once sentiment is so one-sided, it does not take much to get the price going in the other direction and while it is very hard for investors to gauge – other than by wading through the data provided by America’s Commodity Futures Trading Commission (CFTC) commitment of traders’ reports – the impact of traders’ positioning (and who is net long and net short) should never be underestimated. The fundamentals for oil may not be as bad as the market seems to think. It is rare for oil demand to drop, even during recessions, and whether we like it or not, hydrocarbons are likely to be a major source of energy for some time to come, as we seek to manage the transition towards a more renewable future and net zero by 2050. It may therefore be unwise to underestimate demand, especially as the US has run down its strategic petroleum reserve to just 355m barrels, the lowest mark since 1983 and way below its 714m-barrel capacity. -------------------- Shell key facts Market value: £152bn Turnover: (Dec 23E): $343bn Pre-tax profits: (Dec 23E): $47.8bn Yield: (Dec 23E): 4.2pc Most recent year’s dividend: (Dec 22): 86p Net debt: (March 23): $81.8bn Return on capital: (Dec 23): 24.6pc Cash conversion ratio: (Dec 23): 68pc p/e ratio: (Dec 23E): 6.5 -------------------- For reasons of energy independence and national security it seems likely that the US will have to top up again at some stage. However, growth in shale oil production in the US appears to be flattening out, especially in the key Permian basin, according to the Energy Information Administration, data that may inform the International Energy Agency’s forecasts that global hydrocarbon supply may grow more slowly than demand in 2023 (and demand is actually seen hitting a new all-time high). Data from Baker Hughes show that active rig numbers in the US are down by more than 10pc from 2022’s highs, at 696, while the worldwide drop is 8pc to 1,783, compared with February’s high of 1,921. If demand keeps rising, there is a risk that there is not enough supply to meet that demand. The result could in turn be sharp oil price increases, the last thing that traders seem to expect, although any such spike could lead to the demand destruction (and decisive action to secure new energy sources) that environmental campaigners crave, even if the price could be inflation. Central banks can print money, but they cannot print oil when it is needed. Meanwhile, consensus analysts’ forecasts of a drop in after-tax income at Shell in 2023, 2024 and 2025, suggest expectations are low. The shares also look cheap on a dividend yield of more than 4pc, a price-to-earnings ratio of less than seven and relative to £155bn in net assets. Commodity stocks such as Shell could yet be a useful hedge against a sustained bout of inflation. Questor says: Hold Ticker: SHEL Share price at close: £22.94 Russ Mould is investment director at AJ Bell, the stockbroker |
Posted at 01/5/2023 14:23 by waldron Total’s CEO Blames Stock Discount On European ListingBy Tsvetana Paraskova - May 01, 2023, 7:16 AM CDT The primary listing on a stock market in Europe is the main reason for the discount at which TotalEnergies’ stock trades relative to the market value fundamentals of its U.S. competitors, TotalEnergies’ chief executive Patrick Pouyanné has said at meetings with investors in recent months. However, TotalEnergies does not consider moving its primary listing to the United States, Pouyanné has said during recent meetings with investors, the Financial Times reports, citing sources familiar with the discussions. “Culturally it was too difficult” to move TotalEnergies to the U.S., one of the largest shareholders in the French energy firm told FT. CEO Pouyanné has said that “if Total was US-listed it would be much better but, of course, it is impossible for Total to move its listing so it’s not on the cards,” another shareholder told FT. According to analysts, the U.S. supermajors, ExxonMobil and Chevron, are valued on the market at around six times their cash flows, while TotalEnergies is valued at around 4x the cash flow, with UK-based BP and Shell valued even lower, at around 3 times their cash flows. Two years ago, Shell’s executive leadership discussed relocating to the U.S. in order to boost the company’s valuation, FT reported earlier this year. According to the FT’s sources, the supermajor’s new chief executive, Wael Sawan, was part of a team of top executives that two years ago considered moving Shell’s headquarters to the U.S. and listing the company there, too. The relocation idea was ultimately dropped, but the FT notes that Shell’s chief executive remains worried about the difference in valuation between Shell and its U.S. peers. Indeed, there has been a stark difference in the valuations of European and U.S. Big Oil majors. According to analysts, there are two primary reasons for this: the first is the greater clout that ESG investing has in Europe, and the other is that neither ESG-focused nor traditional investors seem to be particularly convinced of European Big Oil’s transition plans. By Tsvetana Paraskova for Oilprice.com |
Posted at 28/2/2023 10:51 by gibbs1 Shell explored quitting Europe and moving to the USConcern over how to close value gap with American rivals could see group walk back commitments on transition away from fossil fuels Shell’s top executives explored moving the Anglo-Dutch energy group to the US to tap better investor valuations. Derek Brower Tom Wilson Anjli Raval Tue Feb 28 2023 - 10:15 Shell’s top executives explored moving the Anglo-Dutch energy group to the US in a proposal that threatened to deliver a hammer blow to the City of London. Wael Sawan, the oil and gas group’s new chief executive, was among a group of top managers who in 2021 discussed the advantages of shifting the company’s listing and headquarters to the US, according to people familiar with the talks. The executive team – where Mr Sawan oversaw oil, gas and renewables before his move to the top job this year – ultimately decided to leave the Netherlands but consolidate its base and stock market listing in London. “During formal discussions about the HQ relocation, [Mr] Wael did not advocate for a move to the US,” Shell told the Financial Times. Shell is the UK’s largest company, with a market capitalisation of £176 billion (€200 billion) and revenues of £316 billion. Its loss to the US would crystallise fears about London’s status as a financial centre, with a dearth of new listings and a series of takeovers risking hollowing out the UK’s equity markets. Although the US idea was ultimately rejected, the motivation that led to the potential move remains: Mr Sawan is concerned about the yawning valuation gap between Shell and US-listed rivals ExxonMobil and Chevron. On the US market, Exxon and Chevron are valued at about six times their cash flow, compared with about three times for Shell. Since his promotion to chief executive in January, Mr Sawan – who met investors in New York this month – has appointed a team of executives to review parts of Shell’s business as it seeks to win back American investors, according to people familiar with his plans. Adjustments could include dropping the commitment made by previous Shell boss Ben van Beurden to allow the company’s oil production to decline by 1-2 per cent a year from 2019 as part of its plan to cut emissions, the people said. Mr Sawan and other Shell executives are said to have been impressed by the 10 per cent jump in UK rival BP’s shares this month after it stunned the sector by paring back its plans to reduce oil and gas production by 40 per cent by 2030. Asked on a recent investor call about Shell’s commitment to reducing oil output, Mr Sawan said the “longevityR Shell said it remained committed to the energy transition strategy, adding that it would update investors in June. The strategy discussions at Shell come as energy companies wrestle with how to maximise returns during the energy transition, after the upheaval wrought by Russia’s assault on Ukraine revived fears about energy security and delivered record profits for the industry. In the past three years, Shell and other European oil companies have pledged to overhaul their businesses to cut emissions but struggled to convince investors that they can deliver attractive returns from their low-carbon investments. Mr Sawan has said divisional heads will have to justify the cost of running their businesses and defend the potential returns, according to people familiar with the matter. “We won’t be as benevolent as before,” said one person familiar with Mr Sawan’s approach to investments in renewables. In a recent internal memo, he announced organisational changes that will result in a reduction in the number of executive vice-presidents responsible for the renewables and energy solutions business, according to people with knowledge of the plans. The possibility of renewed emphasis on fossil fuel production has sparked concern among European staff and questions about how the company would meet its obligations to slash emissions following a Dutch court’s landmark ruling against it in 2021, Shell employees said. But any shift back to oil and gas would be greeted by US staff with “cautious optimism”, one employee said. Shell remains one of the largest producers in the country and recently brought on stream a new deepwater platform in the Gulf of Mexico. Oswald Clint, a Bernstein analyst, said US investors “love the high returns potential with oil investing” and would welcome the company slowing its transition to renewables. “You’ve seen the playbook from BP ... so if he walks back that commentary a little bit it’s preaching to the converted.” |
Posted at 09/2/2023 10:43 by gibbs1 Shell’s board of directors sued over climate strategy in a first-of-its-kind lawsuitPublished Thu, Feb 9 2023 4:07 AM ESTUpdated 45 Min Ago Sam Meredith @smeredith19 Key Points Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday. It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement. “We do not accept ClientEarth’s allegations,” a Shell spokesperson said. Shell recently reported its highest-ever annual profit of nearly $40 billion. Shell’s directors are being personally sued for allegedly failing to adequately manage the risks associated with the climate emergency in a first-of-its-kind lawsuit that could have widespread implications for how other companies plan to cut emissions. Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday. It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement. The claim, which has the backing of institutional investors with over 12 million shares in the company, is said to be the first case in the world seeking to hold a board of directors liable for failure to properly prepare for the energy transition. “Shell may be making record profits now due to the turmoil of the global energy market, but the writing is on the wall for fossil fuels long term,” Paul Benson, senior lawyer at ClientEarth, said in a statement. “The shift to a low-carbon economy is not just inevitable, it’s already happening. Yet the Board is persisting with a transition strategy that is fundamentally flawed, leaving the company seriously exposed to the risks that climate change poses to Shell’s future success — despite the Board’s legal duty to manage those risks,” Benson said. We hope the whole energy industry sits up and take notice. Mark Fawcett Chief Investment Officer at Nest The group of investors supporting the claim include U.K. pension funds Nest and London CIV, Swedish national pension fund AP3, French asset manager Sanso IS and Danske Bank Asset Management, among others. Altogether, the institutional investors hold more than half a trillion U.S. dollars in total assets under management. “We do not accept ClientEarth’s allegations,” a Shell spokesperson said. “Our directors have complied with their legal duties and have, at all times, acted in the best interests of the company.” “ClientEarth&# Shell, which is aiming to become a net-zero emissions business by 2050, said it believes its climate targets are Paris-aligned. ClientEarth said leading third-party assessments have suggested this is not the case, however, noting Shell’s strategy excludes short to medium-term targets to cut the emissions from the products it sells, known as Scope 3 emissions, despite this accounting for over 90% of the firm’s overall emissions. The aspirational goal of the Paris Agreement is to pursue efforts to limit global heating to 1.5 degrees Celsius above pre-industrial levels by slashing greenhouse gas emissions. The fight to keep global heating under 1.5 degrees Celsius is widely regarded as critically important because so-called tipping points become more likely beyond this level. These are thresholds at which small changes can lead to dramatic shifts in the Earth’s entire support system. To be sure, the burning of fossil fuels, such as oil and gas, is the chief driver of the climate emergency. Big Oil profit bonanza The case comes shortly after Shell reported its highest-ever annual profit of nearly $40 billion. The energy giant’s 2022 earnings smashed its previous annual profit record of $28.4 billion in 2008 and were more than double the firm’s full-year 2021 profit of $19.3 billion. Shell CEO Wael Sawan described 2022 as a “huge year” for the company, saying he felt privileged to be stepping into the role he started on Jan. 1. “As we look ahead, I think we have a unique opportunity to be able to succeed as the winner in the energy transition. We have a portfolio that I think is second to none,” Sawan said. Shell’s results came as part of a Big Oil profit bonanza last year, bolstered by soaring fossil fuel prices and robust demand since Russia’s full-scale invasion of Ukraine. Activists from Greenpeace set up a mock-petrol station price board displaying the Shell’s net profit for 2022 as they demonstrate outside the company’s headquarters in London on Feb. 2, 2023. Nest Chief Investment Officer Mark Fawcett said the case against Shell’s board of directors showed investors were prepared to challenge those who aren’t deemed to be doing enough to transition their business. “We hope the whole energy industry sits up and takes notice,” Fawcett said. Separately, London CIV’s Head of Responsible Investment Jacqueline Amy Jackson said, “In our view, a Board of Directors of a high-emitting company has a fiduciary duty to manage climate risk, and in so doing, consider the impacts of its decisions on climate change, and to reduce its contribution to it.” “We consider that ClientEarth’s claim is in our client funds’ interest |
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