Shell Share Discussion Threads

[waldron] 02/5/2018 08:40

Total
52.07 -0.50%


Engie
14.535 -0.10%

Orange
15.07 -0.30%


FTSE 100
7,547.43 +0.36%
Dow Jones
24,099.05 -0.27%



BP
546 -0.31%



Shell A
2,531.5 +0.38%


Shell B
2,603.5 +0.33%

CAC 40
5,514.89 -0.10%




Brent Crude Oil NYMEX 73.53 +0.33%
Gasoline NYMEX 2.09 +0.18%
Natural Gas NYMEX 2.79 -0.36%

[waldron] 02/5/2018 08:33

Royal Dutch Shell PLC (RDSB.LN) said on Wednesday that its joint venture with China National Offshore Oil Corporation, China's largest offshore oil-and-gas producer, has officially launched the second ethylene cracker at the Nanhai petrochemical complex.

Shell said the CNOOC and Shell Petrochemical Company joint venture has started up several derivative units at the complex and that the remaining units will start up over the coming weeks.

The new ethylene cracker will increase the ethylene capacity at the complex in Huizhou, China, by around 1.2 million metric tons per year, more than doubling the current production level, Shell said.

The facility will include a styrene monomer and propylene oxide plant, which will be the largest in China when it begins operations, the company said.



Write to Oliver Griffin at [e-mail]



(END) Dow Jones Newswires

May 02, 2018 01:36 ET (05:36 GMT)

[waldron] 01/5/2018 17:19

BP
547.7 +1.80%



Shell A
2,522 -0.36%



Shell B
2,595 -0.25%

FTSE 100
7,520.36 +0.15%


Brent Crude Oil NYMEX 73.70 -1.30%
Gasoline NYMEX 2.10 -1.38%
Natural Gas NYMEX 2.81 +1.59%

[waldron] 01/5/2018 09:58

BP
544.1 +1.13%



Shell A
2,522.5 -0.34%



Shell B
2,594 -0.29%

FTSE 100 7,527.49+0.2%


Brent Crude Oil NYMEX 74.18 -0.66%
Gasoline NYMEX 2.12 -0.55%
Natural Gas NYMEX 2.77 +0.14%

[waldron] 30/4/2018 17:51

Total
52.33 +0.44%


Engie
14.55 +0.80%

Orange
15.115 +0.53%



FTSE 100
7,509.3 +0.09%
Dow Jones
24,336.51 +0.10%
CAC 40
5,520.5 +0.68%

BP
538 +0.11%




Shell A
2,531 -0.02%


Shell B
2,601.5 +0.21%


Brent Crude Oil NYMEX 74.88 +1.70%
Gasoline NYMEX 2.14 +0.82%
Natural Gas NYMEX 2.74 -0.98%

[waldron] 30/4/2018 09:12

Total
51.78 -0.61%


Engie
14.445 +0.07%

Orange
15.07 +0.23%

BP
534.3 -0.58%

FTSE 100 7,521.03+0.3%



Shell A
2,520.5 -0.43%



Shell B
2,584.5 -0.44%


Cac 40 Index 5,488.28+0.1%

[maywillow] 29/4/2018 10:02

Energy giant's strong earnings
Shell profits rise on higher oil and gas prices
By our Markets reporter | April 26, 2018

Shell benefited from higher oil and gas prices which pushed up first quarter profits by 42% to $5.322 billion from a year ago, compared with a company-provided analysts’ consensus of $5.277 billion.

Chief Executive Ben van Beurden commented: “Shell’s strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our Integrated Gas business, and improved profitability in our Upstream business.

“Less favourable refining market conditions and lower contributions from trading impacted the earnings of our Downstream business.

“We continue to upgrade our portfolio through performance improvement, new projects, divestments and the development of new businesses. Competitiveness and resilience – now and through the energy transition – are key features of our world-class investment case.

“We have a strong financial framework. Our commitment to capital discipline is unchanged, we are making good progress with our $30 billion divestment programme and our outlook for free cash flow – which covered our cash dividend and interest this quarter and over the last year – is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020.”

[la forge] 28/4/2018 10:22

Announcement date April 26, 2018
Ex-dividend date (See Note 1) May 10, 2018
Record date May 11, 2018
Closing of currency election date (See Note 2) May 25, 2018
Pounds sterling and euro equivalents announcement date June 4, 2018
Payment date June 18, 2018

[waldron] 27/4/2018 17:24

Total
52.1 +0.37%



Engie
14.435 +0.73%

Orange
15.035 +0.07%


BP
537.4 +0.39%



Shell A
2,531.5 +1.16%



Shell B
2,596 +1.05%


FTSE 100
7,502.21 +1.09%
Dow Jones
24,253.38 -0.28%
CAC 40
5,483.19 +0.54%



Brent Crude Oil NYMEX 73.69 -0.27%
Gasoline NYMEX 2.12 +0.07%
Natural Gas NYMEX 2.77 -1.88%

[waldron] 27/4/2018 08:44

Shell Remains Undervalued, say Analysts
Morningstar equity analysts remain confident in the oil company’s financial framework after strong first quarter earnings
Allen Good
27 April, 2018 | 8:31AM

Shell Profits

Despite strong earnings growth that largely met expectations, shares in Shell (RDSB) sold off as cash flow did not increase to the degree that was expected given the increase in oil prices. While Shell has already delivered on key targets, such as restoring its full cash and nearly achieving its goal of disposing $30 billion in assets, improvement in cash flow and reduction in debt has stalled.

Clearly the market is concerned, but Morningstar equity analysts remain confident in the company’s financial framework for the next three years as the absence of cash flow growth and debt reduction is largely explainable by one-off events that will eventually subside. We are maintaining our fair value estimate of £28.00 – against a current price of around £25.60 – after incorporating first quarter 2018 results and higher near-term oil prices into our forecast – we assume Brent prices of $70 per barrel in 2018 and $68 in 2019. Our long-term oil-price assumption is $60.

In our opinion the underlying strength of the business is intact, as demonstrated by the strong earnings. Admittedly, though, the market will likely need to see evidence that these are in fact not underlying issues in future quarterly results before fully crediting Shell’s shares. That said, our fair value estimate is unchanged, leaving Shell one of the more attractively valued global integrated oil platers in our view.

With the restoration of its cash dividend, Shell has demonstrated that it has taken the necessary steps to remain competitive in a world of $60/barrel oil. Like the rest of the integrated group, Shell has reduced its cost base, which had become bloated, in part by reducing headcount and improving its supply chain. Furthermore, the addition of BG’s low-cost production reduces Shell’s per-barrel operating cost, which ranked among the highest in its peer group. Shell already reduced operating cost by 20% from 2014 levels and holds that potential further reductions are possible in later years.

At the same time, Shell plans to avoid the mistakes of the past, when rising commodity prices resulted in ever-increasing capital budgets, by keeping yearly capital spending between $25 billion and $30 billion through 2020, a 40% reduction from the nearly $50 billion it spent in 2014. The sharp decrease should improve capital efficiency, but should not completely sacrifice growth. While the reduction in spending is in part a function of cancelled marginal projects that are no longer economical, it also results from cost deflation, improved performance, and design standardisation, which have meaningfully improved potential returns and reduced total project spend.

[waldron] 27/4/2018 08:29

Total
51.9 -0.02%


Engie
14.38 +0.35%

Orange
14.97 -0.37%


BP
533 -0.43%



Shell A
2,495.5 -0.28%



Shell B
2,559 -0.39%




FTSE 100
7,423.74 +0.03%
Dow Jones
24,322.34 +0.99%
CAC 40
5,455.39 +0.03%



Brent Crude Oil NYMEX 73.64 -0.34%
Gasoline NYMEX 2.11 -0.33%
Natural Gas NYMEX 2.81 -0.42%

[sarkasm] 27/4/2018 07:31

Shell Sees Profit Soar On Higher Oil Prices
By Tsvetana Paraskova - Apr 26, 2018, 11:00 AM CDT Shell Truck

Shell (NYSE:RDS.A) on Thursday reported that first-quarter earnings had soared 42 percent annually, reaping the benefits of higher oil prices and strong integrated gas performance, but disappointing with a weaker-than-expected cash flow generation.

Shell’s current cost of supply (CCS) earnings attributable to shareholders excluding identified items—its in-house metric for net profit—jumped to US$5.322 billion in Q1 2018, up from US$3.754 billion for the same period last year, and ahead of analyst expectations of US$5.2 billion.

This past quarter’s profit was the highest Shell has booked since the end of 2014. Higher oil and gas prices, strong performance in the integrated gas division, and improved profitability in the upstream helped Shell to post its best profit since the downturn began.

Lower refining margins and lower contributions from trading affected the downstream business whose profits dropped to US$1.687 billion in Q1 2018 from US$2.489 billion in Q1 2017, as higher oil prices make refining market conditions less favorable.

While Shell beat on profits—as widely expected due to the higher oil prices—its cash flow came in below forecasts and sent its shares down in London, Amsterdam, and New York today. Cash flow from operating activities in Q1 2018 dropped to $9.4 billion from $9.5 billion in the first quarter of 2017, although it recovered from the US$7.275 billion in Q4 2017 that had also missed forecasts.

Related: Are Investors Turning Away From Big Oil?

“I think the problem with the numbers this morning is that the cash flow generation was disappointing. The earnings were very strong but it didn’t get pulled through into cash generation,” Jason Gammel, equity analyst at Jefferies, told CNBC today.

CEO Ben van Beurden commented in Shell’s press release that “Our commitment to capital discipline is unchanged, we are making good progress with our $30 billion divestment programme and our outlook for free cash flow – which covered our cash dividend and interest this quarter and over the last year – is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020.”

However, Shell’s CFO Jessica Uhl did not specify when the group would begin those buybacks, saying that the oil major would focus on cutting debt and paying dividends first.

By Tsvetana Paraskova for Oilprice.com

[waldron] 26/4/2018 17:13

Total
51.94 +1.54%



Engie
14.39 +1.48%

Orange
15.01 +1.62%



FTSE 100
7,418.07 +0.53%
Dow Jones
24,259.12 +0.73%
CAC 40
5,453.58 +0.74%




BP
535.3 +2.16%



Shell A
2,502.5 -1.03%



Shell B
2,569 -0.73%



Brent Crude Oil NYMEX 73.56 +0.33%
Gasoline NYMEX 2.10 +0.33%
Natural Gas NYMEX 2.83 +0.57%

[maywillow] 26/4/2018 16:14

Home > News > Shell makes investors wait for reward from surging oil prices
Shell makes investors wait for reward from surging oil prices
By Kelly Gilblom on 4/26/2018

LONDON (Bloomberg) -- Royal Dutch Shell Plc rode the surge in oil prices to even greater heights, posting a profit not seen since the days of $100/bbl. Investors were displeased that the company didn’t take them along for the ride.

While French rival Total SA has started disbursing the rewards of rising energy prices -- with higher dividends and share buybacks -- Shell has other priorities, at least for now. CFO Jessica Uhl declined to say when her planned $25-billion to $30-billion stock-repurchase program would start, telling reporters on a call that she wanted to focus on debt reduction first.

There are two big reasons for the company’s caution. First, it still has to pay off the acquisition of BG Group Plc in 2016, a deal that’s turbo charged natural gas earnings but left Shell heavily indebted. Second, its cash flow -- little changed from a year earlier despite higher oil prices -- “may not necessarily support” the planned buybacks, according to RBC Capital Markets.

Earnings at Europe’s largest energy company vaulted ahead of the upswing in crude to an average of $67 in the first quarter, reaping the benefits of years of cost cuts. Adjusted net income was $5.32 billion last quarter, compared with $3.75 billion a year earlier. That surpassed analysts expectations of $5.2 billion, rising to a level only consistently seen when oil traded for more than $100.

Total and Statoil ASA also posted the best earnings in years this week, with Total pumping a record amount of oil and gas in the first quarter. Shares of the French company rose in response to its results, the opposite of the reaction to Shell.

Shell dropped as much as 2.8% as analysts raised concerns about flat cash flow from operations, which was $9.43 billion in the first three months of 2018.

“The only negative here is the conversion of those earnings into cash flow,” Oswald Clint, an analyst at Bernstein Research, said by telephone. “It’s a little bit lighter than what I was expecting.”

Shell’s free cash flow was sufficient to fund the company’s cash dividends and interest payments in the first quarter, which wasn’t always the case during the oil-price slump. Like its peers, Shell was forced to make some payments to investors in shares during the downturn, known as a scrip dividend, while also borrowing to fund the cash portion of the payout.

Those newly created shares diluted the holdings of some investors, who have maintained a sharp focus on the timing of the buybacks required to offset the impact. Shell wasn’t able to offer a clear answer on what could trigger the repurchases.

“It’s an integrated decision. I’ve provided enough insight,” CFO Uhl told reporters in response to several questions about buybacks.

That situation should change. Barclays analysts said in a note that they expect Shell to begin the program in the second half.

“We would expect cash flow growth through the year supported by the current macro environment,” said Biraj Borkhataria, an analyst at RBC Capital Markets. “Royal Dutch Shell remains one of our preferred super-majors.”

[maywillow] 26/4/2018 12:26

High Oil Prices Boost Industry Earnings, but Investors Remain Wary -- Update
26/04/2018 12:14pm
Dow Jones News

Shell A (LSE:RDSA)
Intraday Stock Chart

Today : Thursday 26 April 2018
Click Here for more Shell A Charts.

By Sarah Kent

LONDON -- Rising crude prices are supercharging earnings at the world's major oil firms, but investors may need more convincing that Big Oil is back.

Sharply climbing oil prices -- and years of cost cutting when they were low -- are rewarding some of the world's largest oil producers with profits not seen since crude was trading around $100 a barrel. Despite that, investors remain wary. As the industry emerges from a long and painful few years of low prices, shareholders are pressing executives to keep spending in check and funnel free cash to shareholders.

Royal Dutch Shell PLC reported Thursday its highest quarterly profit since 2013, when prices were peaking just ahead of a steep downdraft to about $25 a barrel. Today, international crude is back comfortably above $70 a barrel, and oil companies have enjoyed three months of strong pricing for their crude.

The Anglo-Dutch oil giant said its first-quarter profit on a current cost-of-supplies basis -- a number similar to the net income that U.S. oil companies report -- rose 69% from a year earlier to $5.7 billion. The company delivered more than $5 billion in free cash flow -- a newly important metric for investors who grew concerned about big oil companies' ability to finance their generous dividends during recent years of lower oil prices.

Underscoring the still-skittish sentiment, though, Shell shares were down 2.5% in London morning trading after operating cash flow came in below analysts' expectations.

Shell is the biggest oil company yet to report results for the quarter -- a period when the industry will be under a microscope. After years of retrenchment, investors are expecting companies to deliver them billions of dollars in cash, buoyed by rising oil prices and stringent cost cuts.

Pressure remains on firms to keep spending constrained. Executives have signaled that despite the heady oil prices, they will keep costs in check and spin out cash to investors, instead of betting the gains on new expensive but risky oil-field investments.

"They just need to stick to their knitting," said Rohan Murphy, energy analyst at Allianz Global Investors, a Shell investor. He said the company's leadership needs to "show that they're not going to start spending willy-nilly again."

France's Total SA also reported first-quarter earnings Thursday, beating expectations for profit after stripping out one-off items. The company's production rose to record levels.

But net profit slipped 7% compared with a year earlier, suffering from a tough comparison a year earlier, when it booked a big gain from an asset sale. Higher oil prices also acted as a double-edged sword for Total, adding to costs and crimping margins at its refining operations.

Shares in Norway's Statoil ASA fell nearly 3% Wednesday after its profit numbers missed expectations. High crude prices boosted earnings and cash flow at the company, too, but results suffered from higher depreciation expenses in Norway and weaker earnings from the company's trading and refining unit.

Exxon Mobil Corp. and Chevron Corp. are set to disclose their first-quarter results Friday. BP PLC reports next week. All three are expected to generate higher profits and lots of cash.

Total on Thursday raised its first-quarter interim dividend 3.2%, in line with plans announced in February. It has targeted increasing shareholder payouts 10% over the next three years.

Shell said it is on track to buy back at least $25 billion worth of shares by 2020, but gave no indication when the previously flagged program would begin. Some investors were hoping for more clarity on those plans.

Statoil has also held up the prospect of a buyback, but didn't provide new details about timing this week.

"We still see emerging scope for buybacks but it would depend on the macro environment," Statoil Chief Executive Eldar Saetre said in an interview. "We see a lot of volatility."

Write to Sarah Kent at [e-mail]



(END) Dow Jones Newswires

April 26, 2018 06:59 ET (10:59 GMT)

[waldron] 26/4/2018 08:55

Total
51.58 +0.84%



Engie
14.215 +0.25%

Orange
14.78 +0.07%


BP
530 +1.15%



Shell A
2,477.5 -2.02%



Shell B
2,536.5 -1.99%


FTSE 100
7,375.12 -0.06%
Dow Jones
24,083.83 +0.25%
CAC 40
5,425.06 +0.22%

[la forge] 25/4/2018 22:06

Apr 25, 2018 @ 03:07 PM 68
The Little Black Book of Billionaire Secrets
Shell Preview: Expect Solid Q1 Led By Higher Price Realization For Upstream Business
Great Speculations
Buys, holds and hopes
Opinions expressed by Forbes Contributors are their own.
Trefis Team Trefis Team , Contributor

Royal Dutch Shell is set to report its Q1 2018 earnings on April 26, and we expect the company to post solid numbers, primarily driven by improved price realization for its upstream operations and higher margins for its refined and chemicals products. Further, the company’s efforts to reduce its operating costs and capital spending are likely to boost its bottom-line for the year. 2017 was a good year for oil companies, as growth in WTI crude prices aided their margins, and Royal Dutch Shell in particular benefited from its massive divestments. Similarly, in 2018, the average WTI crude oil price is expected to be $56, representing a 10% jump from the 2017 average. It should be noted that the current price is much higher than the expected average by EIA. This should bode well for the company’s upstream operations in 2018, and the company’s $5 billion annual divestment target will further aid its overall performance. We have created an interactive dashboard on Royal Dutch Shell’s expected performance for 2018. You can adjust the revenue and margin drivers to see the impact on the company’s performance.

Expect Upstream Business To Drive Growth In 2018
Trefis

We estimate Royal Dutch Shell’s Upstream revenues to grow roughly 11% in 2018. While we don’t expect much change in the production, the average crude oil and NGL sale price is estimated to see a 3% jump to $51. Our forecast is based on the fact that OPEC and its allies have committed to production cuts, which is likely to keep oil prices higher, as compared to the prior year. In addition, a number of geopolitical concerns are weighing on the oil prices. Venezuela is sliding into default, and the economy may contract by 15% this year. Earlier this month, the U.S., France, and the U.K. launched a missile attack on Syria’s alleged chemical weapons sites in response to allegations of the Syrian government using chemical weapons. All these factors have led to a surge in oil prices, which currently trade at $69. Having said that, there is a risk of OPEC changing its course, given a surge in oil exports from the U.S. to Asia, which could lead to an increase in the oil production.

Within the Upstream segment, we expect the Natural Gas business to see low single digit revenue growth, primarily led by higher price realization. It should be noted that Royal Dutch Shell’s Natural Gas price realization has declined from the peak of $6.85 in 2008 to $3.16 in 2016. However, it increased to $3.83 in 2017, due to higher demand. The overall gas demand in 2017 was high, which led to lower average inventory levels, thereby pushing the prices higher. Looking forward, natural gas prices are expected to remain steady in 2018. The benchmark Henry Hub natural gas spot price is expected to average around $2.99/MMBtu in 2018, according to the U.S. Energy Information Administration, which is similar to the 2017 average.

Overall, we expect the company to post earnings of $4.73 in 2018. We forecast a TTM price to earnings multiple of 14 by the end of 2018, which is slightly lower than most of the estimates for the sector, to arrive at our price estimate of $68 for Royal Dutch Shell. This implies a discount of around 4% to the current market price.