Shell Share Discussion Threads

[xxxxxy] 08/7/2022 17:24

My intervention in the Prime Minister's Statement on CHOGM, G7 and NATO summitsJULY 8, 2022 8 COMMENTSRt Hon Sir John Redwood MP (Wokingham) (Con): Western purchases of Russian energy are paying for Putin's war. Will my right hon. Friend redouble his efforts to ensure that we invest in more production and output of oil, gas and electricity here, to make our contribution to reducing western dependence?Boris Johnson, Prime Minister: Yes. I think the UK can be very proud of the way we have moved beyond hydrocarbons in so many areas, but we must recognise the limits and the pace of what we have achieved, and be less neuralgic about using our domestic hydrocarbons, particularly when the alternative is just to import them from abroad.... John Redwood

[spud] 08/7/2022 14:16

Most company buybacks occur at the higher end of their price range. Companies seem incapable of sitting on their cash and wait for the inevitable pullback in their share price. spud

[lippy4] 07/7/2022 20:14

makes me angry as well as stupid boris has made it all worse..

[xxxxxy] 07/7/2022 16:56

SIR – Any government's fundamental role is to cater for the basic needs of its citizens, one of which is a secure and reliable energy supply.People will die this winter because they can't afford to stay warm, and businesses will disappear, along with the jobs they offer. The environment will not be affected in the slightest.This was wholly avoidable, yet Boris Johnson's administration persists with the fantasy of net zero.I don't care about parties at Downing Street. I do care about a government killing its own people.Hamish HossickDundeeSIR – Lord Deben, the chairman of the Climate Change Committee, wants to dictate how I eat, travel, go on holiday and heat my home (report, June 29).By 2030 I must shift 20 per cent away from meat and dairy products. Over this same period China intends to build 300 power stations burning brown coal – something to consider as we munch our muesli and shiver next to our radiators giving out heat from air-source heat pumps at 40 degrees.Ian GoddardWickham, Hampshire.... Daily Telegraph

[waldron] 07/7/2022 12:31

Alexander Bueso
Sharecast News

07 Jul, 2022 13:18

Shell moves to derecognise Sakhalin-2 LNG volumes


Shell guided towards lower second quarter liquid natural gas liquefaction volumes after Russia moved to take over the Sakhalin-2 gas and oil project in the country's Far East.



However, higher refining margins were seen offsetting the hit with adding that new oil price forecasts would result in large impairment reversals during the quarter.

Six days before Moscow had announced plans to take control of the Sakhalin-2 gas and oil project in a move that many observers saw as a 'de facto' nationalisation of the project and part and parcel of the war in Ukraine and western support for Kyiv.

Russia however had denied such intentions.

In any case, the oil major was now moving to derecognise those LNG liquefaction volumes, reducing the total remaining volumes to 7.4-8.0m tonnes.

The negative impact of the move was expected to be in a range of $300-500m, the company said in a statement.

That would be on top of one-off charges of approximately $200m related to well write-offs, provisions and commercial settlements.

Upstream production for the quarter meanwhile was pegged at 1.85-1.95m barrels of oil equivalent per day, as a result of higher scheduled maintenance.

On the upside, the outfit's refining margins was expected to nearly triple versus the prior quarter to reach $28.04 per barrel.

That was expected to result in a quarter-on-quarter boost to results in Products of $800-1.2bn.

So too results in Marketing were seen higher on the quarter and in line with those of the first three months of 2021 on sales volumes of 2,300-2,700 barrels per day.

Shell also announced revised mid-to-longer term oil and gas price forecasts "reflecting the current macroeconomic environment as well as updated energy market demand and supply fundamentals."

Those new projections were seen resulting in aggregate post-tax impairment reversals to the tune of $3.5-4.5bn, which are nevertheless reported as 'identified items' and had no cash impact.

The company's new assumptions for the price of Brent crude oil were:

$80/bbl (2023), $70/bbl (2024), $70/bbl (2025) and long-term $65, with the latter measured in real terms versus 2022.

As of 1315 BST, shares of Shell were trading up by 2.37% to 2,021.0p.

[grupo] 07/7/2022 08:17

Shell PLC said Thursday that it would reverse previous impairments of up to $4.5 billion to its upstream and integrated gas assets in the second quarter after it raised its energy-prices outlook.

The oil major said it had raised its mid- and long-term oil and gas commodity prices outlook in the second quarter to reflect the current macroeconomic environment as well as updated energy-market demand and supply fundamentals.

The company also said it expects its integrated gas production to be between 930,000 and 980,000 barrels of oil equivalent a day, and liquid natural gas liquefaction volumes to be between 7.4 million and 8.0 million metric tons. Its trading and optimization result for integrated gas is expected to slip on-quarter in the second quarter.

The company expects to report a hit of $300 million to $350 million following the derecognition of its Sakhalin assets in Russia, after a presidential decree in that country changed the ownership structure of the project.

Shell further expects one-off charges of around $200 million in the second quarter to its integrated gas assets, including well write-offs, provisions and commercial settlements.

Production in its upstream assets are expected to be between 1.85 billion and 1.95 billion barrels of oil equivalent per day, reflecting higher scheduled maintenance.

Second-quarter marketing earnings are expected to rise on-quarter, to be in-line compared with the second quarter of 2021.

The company expects its chemicals and products division's trading and optimization results to be strong in the second quarter, though to be lower than the first quarter.

Improvements to the refining margin--which rose to $28.04 a barrel from $10.23 a barrel in the first quarter--are expected to add between $800 million and $1.2 billion to the second-quarter results when compared to the first quarter of 2022.

The renewables-and-energy solutions division expects to post second-quarter earnings of $400 million to $900 million, benefiting from higher trading and optimization margins.

Shares at 0708 GMT were up 44.8 pence, or 2.3% at 2,019.0 pence.



Write to Joe Hoppe at [e-mail]



(END) Dow Jones Newswires

July 07, 2022 03:30 ET (07:30 GMT)

[grupo] 07/7/2022 07:35

Jamie Ashcroft

PROACTIVE

08:19 Thu 07 Jul 2022



)
Shell says renewables made US$400-900mln in Q2, investors made to wait for oil and gas earnings

The energy giant said it completed a nUS$8.5bn share buy-back programme this week, and, at group level, it expects to pay between US$3.3bn and US$3.7bn of taxes for the quarter.


Shell PLC - Shell says renewables generated US$400-900mln of earnings in Q2, investors made to wait for oil and gas earnings

SShell PLC (LSE:SHEL, NYSE:SHEL) said it expects to generate adjusted earnings of between US$400mln and US$900mln from renewables and its energy solutions businesses for the second quarter, otherwise, the company’s second quarter trading update (its second under a new scheme for guiding the market), is like a jig-saw without all the pieces.

Whilst earnings guidance is being provided indirectly, based on expert consensus, later this month (July 21), the energy supermajor said that upstream oil and gas production for the quarter will amount to 1.85mln to 1.95mln barrels of oil equivalent per day along with integrated gas production of 0.93mln to 0.98mln boepd.

Some 7.4mln to 8mln tonnes of liquified natural gas (LNG) is expected for the three-month period.

Investors reacted positively to the somewhat cryptic trading update, with Shell shares rising 33.8p to trade at 2,008p in Thursday’s early deals.

At group level, the company said it expected to pay taxes of between US$3.3bn and US$3.7bn for the quarter.

It noted that the company’s US$8.5bn share buy-back programme for the first half of 2022 was completed by July 5.

Shell also noted that it had revised up its own oil price assumptions during the quarter, with its internal model now pitched at an average of US$80 per barrel for the 2023 financial year, which it said would trigger some US$3.5bn to US$4.5bn of previously impaired asset value to be reversed.

It also stated that the upstream business would see an extra US$2.5bn of additional adjusted earnings for every US$10 that the actual Brent oil price exceeds its assumed price in guidance, whilst an extra US$1bn would be generated in the integrated gas unit per US$10 of movement in the Brent oil price.

For reference, Brent this morning trades at just over US$100 per barrel.

[xxxxxy] 07/7/2022 07:22

8:16amShell set for $1bn windfall from record fuel pricesShell reckons it landed a windfall of more than $1bn (£840m) last quarter as surging fuel prices boosted its refining business.The FTSE 100 energy giant said its indicative refining margin jumped to $28.04 a barrel in the second quarter – up from $10.23 in the first three months of the year.That increase is expected to have a positive impact of between $800m and $1.2bn.It's the first sign of how oil companies have benefited from a recent surge in fuel prices that have left motorists forking out record sums at the pumps.Shell also expects reversals of between $3.5bn and $4.5bn on previously impaired assets after revising up its long-term oil price predictions.The company took a $3.9bn impairment in the first quarter stemming from its planned exit from assets in Russia... Daily Telegraph

[pete160] 06/7/2022 21:48

I would doubt it. They're going to need all the woke and green votes they can get at the next election, as well as a large dollop of tax bribe to homeowners, pensioners, etc.

[f56] 06/7/2022 21:30

Totally irrelevant if there is an oil shock! All eyes on Biden.

[spawny100] 06/7/2022 17:41

Anyone here wonder if the Tories will uturn on the windfall tax now Sunak has resigned? I wouldn't be surprised at all given their sheer incompetence.

[f56] 06/7/2022 17:22

The winter!

[f56] 06/7/2022 17:21

In the interests of our European friends I call on all global warming fanatics to cease all personal use of gas and oil so that our European friends can survive.

[f56] 06/7/2022 17:07

Nordstream1 goes off line on 11th July. How many in Europe will survive the global freeze? Let us join together in prayer for our European fellows.

[charggg] 06/7/2022 16:35

Where is the buyback RNS? Shouldn't they be hoovering up shares after this price fall? They need to announce another tranche. They have only been spending the Permian sales $8.5bn until now. H2 is when they need to step up buybacks given they are too afraid about restoring dividends to pre covid.

[waldron] 06/7/2022 15:30

Another tough day for oilies especially the pure plays

[xxxxxy] 06/7/2022 06:53

Europe's net zero push is making it difficult to wean the continent off Russian fuel, a Nigerian government minister has warned.Lai Mohammed, culture and information minister, said Brussels' push towards green energy risks harming efforts to bolster energy security.European countries and the UK have over the latest year announced several steps aimed at cutting off funding to fossil fuel projects abroad, to try and cut carbon emissions.Moves to withhold financing for international fossil fuel projects are "counterproductive" because they deter investment in fossil fuels, Mr Mohammed said."Gas will still be needed for the foreseeable future and it would be better for Africa to supply that," Mr Mohammed said.  "These policies will only deter investment in and planning in the industry, but it would not stop the use of fossil fuels."The invasion of Ukraine has prompted a scramble among European countries to cut their dependence on Russian gas supplies and import from other sources.... Daily Telegraph