Shell Share Discussion Threads

[2hoggy] 17/11/2017 23:23

Those two posts are totally contradictory,one up and the other down.

Now what have I said about that kangaroo,they hop higher than wallabys..lol

[maywillow] 17/11/2017 23:02

Alliance News

Crude Oil Prices Show Strong Move Back To The Upside
Fri, 17th Nov 2017 20:42


WASHINGTON (Alliance News) - After ending the previous session modestly lower, oil prices showed a strong move back to the upside during trading on Friday.

Crude oil for December delivery jumped USD1.41 to USD56.55 a barrel after dipping USD0.19 to USD55.14 a barrel on Thursday.

The rebound by the price of crude oil was partly due to news of an oil leak in South Dakota that led TransCanada to shut part of its Keystone pipeline system.

Looking ahead, OPEC meets in Vienna on November 30th and will likely extend its supply quota plan with Russia.

[waldron] 17/11/2017 17:49

waldron
17 Nov '17 - 11:27 - 1524 of 1533 1 0 Edit
Looks like we will manage to see out friday back in the 2375 to 2475 BOX just

AT 2373 IT SEEMS TO PIVOT AROUND THIS A HARDY SUPPORT LEVEL

HOLDING UP FAIRLY WELL IT SEEMS ,WHAT WITH THE EX DIVI AND OTHER NEWS

DEPENDING UPON NEWS THRU TO MONTHS END IT MAY WELL GIVE THAT SPECIAL OPPORTUNITY TO BUY
IN BEFORE A RETRACEMENT TOWARDS YEAR END


WATCHING LIKE A HAWK

[fangorn2] 17/11/2017 16:34

”Shell’s veteran crude oil trading chief steps down”

Royal Dutch Shell’s veteran head of crude oil trading, Mike Muller, is stepping down after 34 years with the company, according to an internal announcement seen by the Financial Times.

Mr Muller, who helped build Shell into one of the world’s biggest oil traders, handling up to 8m barrels a day or almost 10 per cent of global supplies, will be replaced by Mark Quarterman from Dec 1, who previously ran Shell’s trading in refined fuels.

[waldron] 17/11/2017 14:55

For sale: $20 billion of unwanted oil shares seek new owner
By Rakteem Katakey on 11/17/2017

LONDON (Bloomberg) – Major oil companies are under pressure, unloved and on sale.

Energy giants from Exxon Mobil to Royal Dutch Shell are struggling back to their feet after a three-year oil slump, while also fighting to prove they can survive for decades to come amid an accelerating shift to clean energy. So getting dumped by the world’s biggest investment fund wouldn’t be welcome news.

Norway’s $1 trillion sovereign wealth fund said on Thursday that it wants to sell about $35 billion of shares in oil and gas companies to make the nation “ less vulnerable” to a drop in crude prices. Global energy giants favored by long-term investors including Italy’s Eni SpA, PetroChina and Russia’s Gazprom account for more than $20 billion of that total.

“This would be hugely impactful, depending on how they do it, especially when many people aren’t comfortable with energy just yet anyway,” said Elvis Pellumbi, London-based chief investment officer at CF Opportunity Fund. “They would also lose a lot of money doing it, unless spread over a number of years.”

Norges Bank Investment Management is among the top 10 shareholders in each of Europe’s biggest oil companies. Its largest stake is 2.3% of Shell, followed by 1.7% of Eni. If the sale is approved by Norway’s Finance Ministry, it could bring millions of shares to the market and test the appetite of other investors for companies that are striving to show they’ve seen off the worst of crude oil’s slump.

“It’s a big sale,” but the market will be able to absorb it, said John Roe, head of multi-asset funds at Legal and General Investment Management. “There are reasonable fundamentals behind energy companies. Many are already focusing on how to cope with future changes in the energy mix, including reducing investment.”

Oil industry shares have gained in recent months, with the 88-member MSCI World Energy Sector Index adding more than 9% from this year’s trough in August. Oil prices have increased as OPEC production cuts help to shrink global inventories and demand strengthened. Major oil companies have also started to demonstrate they can live with prices at $50 to $60/bbl by cutting spending.

Long-Term Questions

Still, the index is the worst performing sector in the overall MSCI World Index. The industry’s future is being questioned like never before as electric vehicles and the fight against climate change prompt some forecasters to predict that within a decade demand could peak for gasoline and diesel -- the backbone of the industry in the past century.

“Norway has taken action to protect its sovereign wealth fund assets from the consequences of the coming peak in oil demand,” said Catherine Howarth, Chief Executive of ShareAction, an activist group. “We would expect pension funds and other long term investors to follow suit.”

Oil and gas equities reacted negatively to the announcement. Shell’s B shares led the declines, dropping 2.4%, while Eni dropped 1% and BP lost 0.8%.

The Norwegian fund’s decision to sell is “further reason to be cautious for oils relative to broader markets over coming one to three years,” said Jason Kenney, an Edinburgh-based analyst at Banco Santander SA.

New Opportunities

Some investors saw Norges Bank’s proposal as a chance for profit.

The sell-off prompted by Thursday’s announcement “is a great opportunity to buy Shell stocks again,” said Danilo Onorino, fund manager at Dogma Capital in Lugano, Switzerland, who owns stock in several European oil majors. "This announcement is extremely bad for Norges. Not only will they be selling at minimal levels,” but they will also give up very high dividend yields, he said.

Others saw a different opportunity.

“From a financial point of view this makes perfect sense” because Norway’s economy already has considerable exposure to oil and gas, said Jan Erik Saugestad, Chief Executive Officer of Storebrand Asset Management, Norway’s largest private pension fund with $80 billion under management. “This also represents an opportunity for the oil fund to invest more in renewable industries and infrastructure.̶1;

[the grumpy old men] 17/11/2017 14:38

Early days yet, but thanks zho for link

[the grumpy old men] 17/11/2017 12:46

When Will Royal Dutch Shell Raise Its Dividend?
Nov. 16, 2017 4:59 PM ET|
15 comments|
About: Royal Dutch Shell plc (RDS.A), RDS.B
Aristofanis Papadatos
Aristofanis Papadatos
Oil & gas, portfolio strategy, value
Aristofanis Papadatos
(3,118 followers)
Summary

Royal Dutch Shell has not cut its dividend since World War II.

However, the company has paid the same dividend for 15 consecutive quarters.

Therefore, the big question is if and when its shareholders should expect the next dividend hike.

Royal Dutch Shell (RDS.A) (NYSE:RDS.B) offers a generous dividend yield, which currently stands at 5.9%. Nevertheless, the oil major has paid the same dividend for 15 consecutive quarters. Therefore, as most of its shareholders are holding the stock for its dividend, it is only natural that they wonder if and when they should expect the next dividend hike.

First of all, Shell has an enviable record in dividend payments to its shareholders. To be sure, the company has not cut its dividend since World War II. This achievement certainly confirms the exceptional business performance of the company. However, the company has markedly slowed its dividend growth rate during the last decade, as it has raised it by only 2.7% on average during this period.

In addition, like the other oil majors, Shell has been pressured to a great extent by the prolonged downturn of the oil market and hence it has frozen its dividend for 15 consecutive quarters. More precisely, the company posted free cash flows of only $3.7 B in 2015 and -$1.5 B last year, which were clearly insufficient to cover the annual dividend payments of about $16 B. Consequently, the net debt (as per Buffett, net debt = total liabilities – cash – receivables), which also increased due to the acquisition of BG, has almost doubled in the last few years, from $87.8 B in 2012 to $150.1 B in the most recent quarter. The steep increase in the debt load has also resulted in doubling the annual interest expense of the company, which currently stands at $3.0 B. Therefore, the company has to reduce its debt load in order to reduce its leverage and its exposure to any unforeseen headwinds.

On the other hand, the company has taken the right measures during the ongoing downturn in its sector and hence it now seems to have left the worse behind. More precisely, it has reduced its operating expenses by approximately 25% during the last three years while it has also curtailed its capital expenses by 1/3. As a result, it has managed to achieve free cash flows of $16.8 B in the last 4 quarters, which are sufficient to fund the dividend payments. In other words, the company has managed to fully cover its dividend at an average oil price of $51. This achievement only confirms that the company has taken the right steps to withstand the environment of low oil prices. It is also remarkable that Shell has surpassed Exxon Mobil (XOM) in operating cash flows so far this year for the first time in about two decades.

While all the oil majors have enjoyed strong support from their refining segments during the current downturn, Shell has found additional support from its chemical segment. More specifically, while the price of oil is now half of what it was in 2014, the earnings of the chemical segment of the company have doubled, from $1.3 B to $2.6 B in the trailing four quarters. Therefore, this segment provides additional diversification to Shell under the prevailing low oil prices.

It is also worth noting that the management of Shell does not focus merely on the short-term results, like most managements. Instead it maintains a long-term horizon. This is clearly reflected in the recent acquisition of NewMotion, the owner of one of Europe’s largest electric vehicle charging networks. While the current scale of electric vehicles is negligible for an oil major, the management of Shell made this acquisition thanks to its expectations for electric vehicles to comprise about a quarter of the global car fleet by 2040. It is certainly encouraging that the management has such a broad horizon and tries to make the right moves well in advance to position the company before other large companies enter the market.

It is also important to note that the oil major is fine grading its upstream segment in order to be appropriately positioned to benefit from the next upcycle. More specifically, while this segment used to generate the vast majority of the total earnings of the company in the past, it is now only marginally profitable and makes up just 15% of the total earnings. Nevertheless, the management maintains a long-term scope and has thus invested in several blocks in Brazil’s offshore oil sector. In fact, the company secured half of the blocks offered in the tender. More importantly, the management believes that these blocks will prove profitable even at oil prices below $40. Therefore, while the company is disposing non-core assets to preserve its balance sheet, it is also investing in projects with really promising returns.

In reference to the prospects of a dividend hike, although the managements of the other oil majors have emphasized that their top priority is the dividend, the management of Shell has repeatedly stated that its top priority is the reduction of the debt load. Therefore, the management is not likely to raise the dividend for a few more quarters, particularly in the next quarter, when the company expects somewhat lower earnings due to extensive maintenance.

On the other hand, if the price of oil does not fall below $50 for a long period, the company will certainly start to reduce its debt load. Despite the booming shale oil output, the oil market is better balanced now than it was three years ago thanks to the drastic cuts of capital expenses of all the oil producers during this downturn. These cuts will soon start to take their toll on the total supply. Moreover, while the shale oil producers are likely to put a cap on any rally of the oil price, Saudi Arabia will do its best to support the oil price amid the upcoming IPO of Saudi Aramco next year. Therefore, while oil is not likely to return to the $100 level anytime soon, it is likely to remain around $50-$70 for the next few years. Such a range will certainly help Shell improve its balance sheet. In addition, as soon as the company becomes confident that the oil price will not plunge to $40s once again, it is likely to raise its dividend. Therefore, its shareholders can reasonably expect the next dividend hike to be announced during the second half of next year.

To sum up, Shell has taken the right steps in the ongoing downturn of the oil market and thus seems to have left the worse behind. As a result, the oil giant can fully cover its dividend at the prevailing oil prices. Therefore, as the oil market has become more balanced and the oil price is not likely to plunge to low $40s anytime soon, the company will be able to start reducing its debt load and will then be able to raise its dividend, probably in the second half of next year.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

[the grumpy old men] 17/11/2017 12:29

hoggy tell us all about, do not be so modest even though its


more like a mini wallaby as volume not jumping up that much

[2hoggy] 17/11/2017 12:24

As I said earlier the big boys jump back in and boinggg.

Its like a kangaroo.

Tie me kangaroo down sport.....

[waldron] 17/11/2017 11:27

Looks like we will manage to see out friday back in the 2375 to 2475 BOX just



The viking thunder has subsided and the waters are calm once again


atleast it prompted FJ to make his promotional post on behalf of his sponsors
just in case there might be a surprise exit

cheers FJ

ENJOY YER WEEKEND

TAKE CARE

[maywillow] 17/11/2017 11:15

Shell eyes oil and gas projects in Kazakhstan
17 November 2017 14:39 (UTC+04:00)

Baku, Azerbaijan, Nov.17

By Nigar Guliyeva – Trend:

Kazakh President Nursultan Nazarbayev met with Royal Dutch Shell PLC delegation headed by CEO Ben van Beurden, the press service of the president reported.

The sides discussed current issues and prospects for cooperation in the oil and gas sector of the country, including the further development of the Karachaganak and Kashagan projects.

Berden recalled that on Nov.18, 20 years will pass from the signing of the Production Sharing Agreement on these fields.

"These projects turned out to be very good and effective. All expenses were repaid on time, and now the projects are working for profit," Nazarbayev responded in turn.

Kazakh Prime Minister, Bakytzhan Sagintayev also met with the Royal Dutch Shell PLC delegation.

The sides discussed the issues of the cooperation and the implementation of the joint oil and gas industry projects in Kazakhstan.

Shell is a global group of energy and petrochemical companies. Shell, a British-Dutch multinational oil and gas company, is one of the parties to the North Caspian Production Sharing Agreement signed on 18th November 1997.

Kazakhstan, holding 3 percent of the world's oil reserves, is among the top 15 countries in the world in terms of proven oil reserves.

Oil and gas bearing areas occupy 62 percent of the country's territory, and have 172 oil fields, of which more than 80 are under development. More than 90 percent of the oil reserves are concentrated in the 15 largest fields.

The fields are located on the territory of six of the fourteen regions of Kazakhstan. These are the Aktyubinsk, Atyrau, West Kazakhstan, Karaganda, Kyzylorda and Mangistau regions. About 70 percent of hydrocarbon reserves are concentrated in the west of Kazakhstan.

[maywillow] 17/11/2017 10:24

Stocks: Oslo Reviews Oil Holdings -- WSJ
17/11/2017 8:02am
Dow Jones News

Shell A (LSE:RDSA)
Intraday Stock Chart

Today : Friday 17 November 2017
Click Here for more Shell A Charts.

By Dominic Chopping

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 17, 2017).

Norway's sovereign-wealth fund said on Thursday it may stop buying oil and gas stocks, a move that would deprive the energy sector of investment from a $1 trillion asset manager.

The Norwegian central bank, which uses the fund to invest the proceeds of the country's oil industry, said that investing money back into the energy sector amplifies the government's exposure to the price of crude, particularly given the country's majority stake in Statoil ASA.

Oil and gas equities currently account for around 6% of the Government Pension Fund Global's benchmark index, or just more than 300 billion Norwegian kroner ($36.49 billion).

The Stoxx Europe 600 Oil & Gas index drifted lower on the news of the potential divestment. Shares in Statoil fell by as much as 1%. The fund owns large stakes in most of the world's major oil companies, including a 0.92% stake in Chevron Corp., a 0.82% stake in Exxon Mobil Corp., 1.65% in BP PLC and 2.23% in Royal Dutch Shell PLC as of the end of 2016.

"An orderly divestment process over a period of time won't significantly impact share prices," said Jefferies analyst Jason Gammel.

Norges Bank, the central bank, made the proposal to Norway's Ministry of Finance on Thursday, saying that, given its size, the fund accounts for an increasingly large share of the nation's wealth and is an integral part of government fiscal policy. That means that the vulnerability of government wealth to a permanent drop in oil and gas prices would be reduced if the fund pulled out of the stocks in that sector, Norges Bank said.

Two years of weaker oil prices has cut into the income of many of the world's largest sovereign-wealth funds, which are in largely resource-dependent countries like Saudi Arabia and Kuwait.

The Ministry of Finance said the government aims to make a decision in the fall of 2018.

A bank official said that the advice doesn't reflect a view on future oil and gas prices.

Norway's fund was established to harness the country's oil and gas income while also giving the government room for maneuver in fiscal policy should oil prices drop, the mainland economy contract and as its oil eventually runs out.

In September, the fund value reached $1 trillion for the first time after being boosted as the world's major currencies strengthened against the U.S. dollar, combined with strong equity markets.

While the fund's latest proposal was based on concern about overexposure to oil, the fund has been steadily pulling out of mining companies and power producers that derive large portions of income from thermal coal.

Other large investors have launched products that don't invest in fossil fuels.

In April, Storebrand, Norway's largest private-pension fund, said it had launched two new fossil-free funds. Several U.K. pension plans have funds that don't invest in the sector. In 2014, Stanford University said it wouldn't invest in coal-mining companies, and under pressure from environmental activists other U.S. endowment funds have debated whether they should pull out of fossil fuel investments.

On Thursday, Storebrand said in a release that Norge Bank's move should encourage other funds to pressure "oil and gas companies to revisit their investment plans and operations in the transition to a low carbon economy. "

Mr. Gammel, though, said he didn't expect to see a flight of money from the sector.

Sarah Kent contributed to this article.

Write to Dominic Chopping at [e-mail]



(END) Dow Jones Newswires

November 17, 2017 02:47 ET (07:47 GMT)

[2hoggy] 17/11/2017 09:00

Also when its goes far enough down will the big boys jump back in to get the divis again,as it is one of the top divi payers.

[thomscm2] 17/11/2017 08:56

La Forge

Yes I agree, ARAMCO is the key. If people are fighting hand over fist to buy
the shares then what was written today is a nonsense.
Pay particular attention to the so called divestment funds and their take up
of ARAMCO shares. It should be Zero.

[la forge] 17/11/2017 08:46

EARLY DAYS AS YET

still has to be voted in

but they are the big boys and might well be followed by lesser mortals

one would presume that other sectors will benefit somehow so if you have a well balanced portfolio perhaps you might gain

i for one will spread my risk but when, that is the question

i take it all will come to fruition when ARAMCO is finally floated

I would not pooh pah your fellow investors,because what ever the outcome , there is some money to be made short,medium and long even by the so called gullible

HAVE A NICE DAY THOM

[thomscm2] 17/11/2017 08:34

One more thing to remember. By making these announcements they have just reduced
the value of their holdings. How does that make good business sense?
Unless you are going to increase your holdings at lower prices.

[thomscm2] 17/11/2017 08:23

Isn't it strange that all these funds can tell you what they are not going
to invest in, driving the share prices lower but not telling you what they
are going to invest in. Why do i think it is just a ploy to buy more at lower
prices. It's all written for the gullible. By the fall of 2018 nobody will remember
the articles written today.

[waldron] 17/11/2017 05:42

yep almost turned into a pumpkin

had to let old puppy dog out into the garden

and check whether hedgie hoggys still about

perhaps you should consider going into hibernation too

rather nippy here today and too cold to snow

enjoy your day and weekend

take care

[2hoggy] 16/11/2017 22:52

Waldron you should be in your bed as its past your bedtime.

Naughty boy....lol