Shell Share Discussion Threads

[fangorn2] 22/5/2018 17:44

19 Shareholder resolution*
For Against
268,063,768 5.54 4,567,121,334 94.46 4,835,185,102 57.96% 404,376,930
* Special resolution


So that'll mean the tree huggers are going to sue now one presumes.

[funtimejonny] 22/5/2018 06:51

Thanks for posting that FJ. Handy to know this when planning an investment for the longer term.

[funtimejonny] 22/5/2018 06:51

Thanks for posting that FJ. Handy to know this when planning an investment for the longer term.

[waldron] 22/5/2018 06:16

NICE ONE FJ, CHEERS

THIS CAUGHT MY ATTENTION YESTERDAY TOO




ANOTHER BEAUTIFUL SUNNY DAY BEGINS,STILL NO STORMS

ENJOY

[fjgooner] 22/5/2018 00:07

This really is very key - please read and view the video.

I was watching this going out live on Bloomberg TV a few hours ago with an enormous smile on my face and thought it well worth sharing before I head to bed tonight.

It is great news for companies such as Shell for both now and the years ahead.

Enjoy.

FJ

---------------------------



Economics

Forget About Oil at $80. The Big Rally Is in Forward Prices

By Catherine Ngai, Alex Longley and Javier Blas

‎21‎ ‎May‎ ‎2018‎ ‎12‎:‎50 Updated on ‎21‎ ‎May‎ ‎2018‎ ‎13‎:‎46

Brent five-year forward prices outpace gains in spot prices

Investors question the ‘lower for longer’ oil price mantra

Brent crude oil grabbed all the attention after spot prices hit $80 a barrel last week. And yet, almost unnoticed, a perhaps more important rally has occurred in the obscure world of forward prices, with some investors betting the "lower for longer" price mantra is all but over.

The five-year Brent forward price, which has been largely anchored in a tight $55-to-$60 a barrel range for the past year and a half, has jumped over the last month, outpacing the gains in spot prices. It closed at $63.50 on Friday.


"For the first time since December 2015, the back end of the curve has been leading the complex higher," said Yasser Elguindi, a market strategist at Energy Aspects Ltd. in New York. "It seems that the investor community is finally calling into question the ‘lower for longer’ thesis."

Bob Dudley, the chief executive of oil giant BP Plc, coined the "lower for longer" mantra in early 2015, warning of a protracted period of cheap crude. He later clarified that he meant "lower for longer, but not forever."

More to Run

While spot prices fluctuate wildly, often driven by geopolitics such as U.S. sanctions on Iran, the five-year forward usually trades in a narrower range, anchored by longer views about future supply and demand.

Over the past three years, long-dated prices had been weighed down by the belief the growth in U.S. shale production, combined with the adoption of electric vehicles, would keep prices under control.

Investors are now questioning that hypothesis, pushing up forward prices. Over the past month, Brent five-year forward futures gained 11 percent, compared with a 6.8 percent increase in futures for immediate delivery.

"We think there is more to go for the longer date contracts,” SEB chief commodities analyst Bjarne Schieldrop said. “This will send very positive price signals into the whole oil space with higher confidence, optimism and evaluations as a likely consequence."

Demand Surprise

There are several reasons for the sudden surge in forward prices. Oil consumption is expanding much faster than anticipated, adding growth in two years that would normally take three. At the same, oil investment has dropped significantly over the past three years, particularly in projects that take longer to develop such as ultra-deep water offshore, raising doubts about future supply growth despite the gains in Texas, North Dakota and other U.S. shale regions.

Moreover, a change in marine fuel oil specifications by 2020, which should increase significantly the demand for diesel-like refined products, is further reinforcing the belief among some investors that the oil market will be tighter than expected in the future.

Morgan Stanley Says a Shipping Revolution Has Oil Headed for $90

The buying has sparked a rally in later-dated contracts in the past week-and-a-half that traders say is even more impressive than Brent’s march past $80. The grade for delivery in December 2022 has surged 10 percent since to beginning of the month to nearly $64 a barrel. The December 2023 has risen above $63 a barrel.

The higher forward prices are also catching the attention of some equity investors as they usually use longer-dated prices to value energy companies.

Despite the rally in forward prices, oil exploration and production companies, which typically hedge their production further out in the curve, have remained reticent to buy in, according to John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. Oil producer selling typically puts pressure on the back of the curve.

Investors aren’t just buying outright long-dated futures, but also betting through the options market on much higher prices in the early part of next decade by buying call options. The contracts, which give investors the right to buy at a predetermined price, are popular among commodities hedge funds.

Call options that would profit from Brent rising to $130 a barrel by the end of 2020 traded 2,000 times on Friday. That follows a similar amount of $100 contracts for the same period trading over the past two weeks.

“The war premium at the front of the market masked the fact that future significant demand increases and questions over supply levels equate to higher prices down the line,” said Richard Fullarton, founder of commodity focused hedge fund, Matilda Capital Management Ltd.

— With assistance by Jessica Summers, and Sheela Tobben

[sogoesit] 21/5/2018 20:46

I’m with you on that grahamite2... on both counts.
What a sweet chart for such a big cap stock!

[petepitstop] 21/5/2018 19:55

The gearing level should improve greatly if Shell can hold on to the equity gains for the half year. It could be below 22 percent.

[grahamite2] 21/5/2018 17:58

Who says nothing goes up in a straight line?

I just hope the board takes no notice of the global warming cranks who have wormed their way on to the shareholder register.

[waldron] 21/5/2018 17:17

Total
54.5 +0.04%


Engie
14.6 -0.10%

Orange
14.295 -0.66%


FTSE 100
7,859.17 +1.03%
Dow Jones
24,979.24 +1.07%
CAC 40
5,637.51 +0.41%

Brent Crude Oil NYMEX 78.85 +0.18%
Gasoline NYMEX 2.24 +0.63%
Natural Gas NYMEX 2.82 -0.53%



BP
592.8 +1.11%


Shell A
2,748.5 +1.20%



Shell B
2,841 +1.32%

MUST ADMIT PLEASANTLY SURPRISED THAT SHELL B SITTING IN THE 2775 to 2875p BOX

ALSO SURPRISED AT THE PREMIUM BEING 92.5p

still expect some sudden profit taking or a substantial spike down but this year
might come under the category DO NOT SELL IN MAY NOR GO AWAY

ENJOY YOUR WEEK

[sarkasm] 20/5/2018 15:30

Royal Dutch Shell
Shell faces shareholder challenge over climate change approach

Investors back resolution calling on oil giant to set tougher carbon targets in line with Paris climate deal

Adam Vaughan @adamvaughan_uk

Sun 20 May 2018 14.43 BST
Last modified on Sun 20 May 2018 14.51 BST

Shares
6
Shell’s Brent Delta Topside offshore oil drilling rig
The Dutch campaign group Follow This founder Mark van Baal presented a choice between Shell’s ‘whatever world’ or a world where firms aim to limit climate change below 2C. Photograph: Scott Heppell/AFP/Getty Images

Royal Dutch Shell faces a shareholder challenge over climate change this week, as investors insist oil and gas firms should offer more transparency and action on carbon emissions.

A growing number of pension funds have backed a resolution at Shell’s AGM on Tuesday, which calls on the company to set tougher carbon targets that are in line with the goals of the Paris climate deal.

The proposal is supported by the Church of England, Dutch pension fund Aegon and, most recently, Nest, the workplace pension scheme set up by the UK government, which has £7m invested in Shell.

Mark van Baal, founder of Follow This, the Dutch campaign group that brought the resolution, said: “Investors have a choice: vote for Shell’s ‘whatever world’ or vote for the world of the Church of England, a world in which all companies set targets to limit climate change to well below 2C.”

The resolution has also been highlighted by 60 large investors managing more $10.4tn (£7.72tn) in assets, though they stopped short of publicly backing it.

“Regardless of the result at the Shell AGM, we strongly encourage all companies in this sector to clarify how they see their future in a low-carbon world,” the investors, who include Axa Investment Managers and Legal & General Investment Management, wrote in an open letter.

It is the third year in a row that Follow This has brought a climate resolution to Shell’s AGM.

Ben van Beurden, Shell’s chief executive, has admitted the resolutions played a role in convincing the firm to announce a plan of halving the carbon footprint of the energy it sells by 2050. Follow This has welcomed the move but said it is not enough.

Influential shareholder advisers have also urged investors to oppose the CEO’s remuneration package, which rose to €8.9m (£7.79m) in 2017.

Institutional Shareholder Services (ISS) said van Beurden’s €3m (£2.63m) bonus was not warranted, given how the firm performed on its sustainable development targets. Advisory group Pensions and Investment Research Consultants (Pirc) also recommended opposition.
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A Shell spokesperson said the company “strongly disagreed” with ISS’s concerns, noting the advisory group had supported the policy that had put the bonus framework in place.

They added: “We share the objective of Follow This for Shell to show leadership in the energy transition but we consider their resolution unnecessary as we have already outlined an approach, through our industry-leading net carbon footprint ambition, that is wider-ranging and more progressive.”

Rival oil giant BP also faces a potential challenge – over pay – during its AGM in Manchester on Monday, the first time the London-based firm has held the event outside the capital in more than a century.

The British oil firm said about 40% of its shareholders live north of Birmingham and Manchester’s location and transport links would be convenient for retail investors.

The company’s healthy profits off higher oil prices mean the extraordinary 2016 shareholder revolt over chief executive Bob Dudley’s £14m pay package is unlikely to be repeated.

But some proxy advisor groups have urged investors to reject Dudley’s £9.5m remuneration for 2017, which Pirc said was at an “unacceptable” ratio of 48:1 compared to average employee pay.

[florenceorbis] 19/5/2018 09:29

why compare SHELL with AMAZON, they are totally different companies

Both could be in a well weighted portfolio

It could be agrued whether SHELL is doing sufficient to combat climate change but thats not under discussion on this thread

Would agree however that oil majors and oil and gas service companies are now having their
well oiled day in the sun

Also,i must admit efficiences due to technology advancements are quickly flowing thru to the bottom line



beautiful day here

enjoy your weekend

[petepitstop] 19/5/2018 08:59

However well AMZN is doing it is certainly priced in with a price / book of 27, a price / revenue of 4 and even with a low operating margin of 2.3. Furthermore its main sector of operation is in retail in the developed Western world where we have reached 'peak stuff'. Compare and contrast with Shell; a price/ book of 0.7, a price / revenue of 0.5 and all with a rising 5.6 operating margin. Unlike AMZN, Shell is truly global with great exposure to Asian growth and strong world wide demand. Sentiment is still the dominant factor in the pricing of the 2 companies, but with Shell at the forefront of combating climate change which I think is the largest global investment trend, then I feel this could change over time. I do believe it has started.

[sarkasm] 18/5/2018 21:07

Shell takes WilPhoenix on long-term P&A contract
05/18/2018

Offshore staff

ABERDEEN, UK – Shell UK has contracted Awilco Drilling’s semisubmersible WilPhoenix for decommissioning of 18 wells, with options for a further eight wells.

The firm 18-well program, valued at $38.3 million, is due to start on Sept. 1 and continue for 330 days.

The WilPhoenix is an Enhanced Pacesetter design equipped for drilling in water depths up to 1,200 ft (366 m).

05/18/2018

[waldron] 18/5/2018 17:35

wow

snug in the 2775 to 2875 BOX

DIVIDEND Payment
date
June 18, 2018

I dare say those wishing to add more shares to their portfolio might wish the sp
to fall substantially during divi pay week towards a support level of 2475p

[waldron] 18/5/2018 17:22

Total
54.48 -0.04%


Engie
14.615 +0.48%

Orange
14.39 -1.64%

FTSE 100
7,778.79 -0.12%
Dow Jones
24,739.19 +0.10%
CAC 40
5,614.51 -0.13%


Brent Crude Oil NYMEX 78.89 -0.77%
Gasoline NYMEX 2.24 -0.03%
Natural Gas NYMEX 2.87 +0.49%


BP
586.3 +0.39%



Shell A
2,716 -0.51%


Shell B
2,804 -0.05%

[petepitstop] 18/5/2018 14:22

I think we are all underestimating the impact of technology for Shell as I think there is a chance it could have an exponential benefit and therefore it extremely difficult to predict how the share price will go over the next 5 years, never mind over a lifetime of betting. It is always important to look at the downside risks first and there are always plenty for any company but one should also be aware of the potential upside. How the private investor manages the winners is probably 10 x more important than what happens to your losing bets.