Shell Share Discussion Threads

[imperial3] 04/11/2018 14:28

The market was hardly inspired by the results.Further downward pressure on the share price, in the next few weeks,if oil continues weakens?

[sarkasm] 04/11/2018 12:20

MARKET CAP APPROX 260BILLION USD

SO 10 Percent is nearest

cheers and beers go to 10acious and ianood

10.4

[zho] 04/11/2018 12:13

U.S. sanctions designed to push Iran’s oil exports to zero come into force at midnight, but the hard line initially signaled by President Donald Trump is softening as the deadline approaches. With countries that have already cut their purchases to zero now being granted waivers to buy Iran’s oil, the country’s exports may well go up, not down, in November.

[10acious] 04/11/2018 11:46

FlorenceShell A plus Shell B has a total of a little over 200 billion pounds.

[florenceorbis] 04/11/2018 09:29

Puzzled

stock exchange gives

Security market cap, £m 92,700.80

which suggests nearer 20pc depending on usd rate taken

Have your got your source of 10pc

HAVE A GOOD DAY

[ianood] 04/11/2018 09:09

bbonsall - U$ 25bln is roughly 10% of the companies market cap not 1/3rd - but I get your gist

[essentialinvestor] 04/11/2018 09:01

Depends where oil goes. If it stays near current levels they
are set fair.

[tornado12] 04/11/2018 08:42

About buybacks, I don’t believe the share price is strictly linked, but agree it should at least stabilise EPS and Divi cover. Before the end of 25 bill B.B. I hope they start increasing the Divi, is the only sure and immediate way for SH income increasing

[tornado12] 04/11/2018 08:39

If the £ goes ballistic if we get a Brexit agreement this month then dollar will be > 1,40. What will happen to Shell share price but only go negative ?

[grupo] 03/11/2018 19:40

November 03 2018 10:10 PM
Business
RELATED STORIES
Oil
Oil
Text Size: A A A

Bloomberg/London

Oil companies saw soaring profits during the third quarter as they emerge worst-in-a-generation crude slump. The main takeaway is that while results are mostly above or in line with expectations, it’s getting harder to impress investors, even with large buybacks.
Here are five key themes from third quarter earnings season:


1. It’s all about the cash
There may be no number more important to Big Oil bosses right now than cash flow. Royal Dutch Shell Plc in particular has made it a priority to turn itself into a well-oiled cash machine. It’s focused on getting the highest-margin barrels out of the ground, and churning money out of its liquefied natural gas trading business.
In the third quarter, the Anglo-Dutch oil major brought in its biggest cash haul in a decade, excluding working capital movements. That obliterated analyst estimates for what the company could produce. “We like the direction of travel,” said Alasdair McKinnon, lead fund manager at Shell investor Scottish Investment Trust.


2. Show me the money
The big question from shareholders: Are companies going to use all that money to pay us? The answer is yes. Most companies accelerated or continued share repurchase programmes, signalling confidence the dark days of the crude slump are gone. There were contrasts, though – Shell is going faster than anyone, while Exxon Mobil Corp has yet to discuss resuming buybacks.


3. Saving for a rainy day
While oil companies may be enjoying surging cash – and handing some of it back to investors – almost no one has any interest in boosting capital spending, at least for now. Every major company except for Exxon pledged to keep capital expenditure at a near-decade low for the foreseeable future.
They see this as important to winning back the confidence of shareholders. The value of the companies eroded from 2014, after they found themselves locked into expensive mega-projects during a major crude price collapse.


4. Debt dilemma
The other big question from shareholders: what about debt? Having low debt means having more firepower and flexibility to do deals as well as ride out the next market downturn. Yet debt hasn’t really declined that much from a year ago, reflecting the fact that these companies have only recently started generating enough cash to cover shareholder distributions and their capital budgets again.


5. Crisis of confidence
Even after all their hard work, investors are still uncertain of the industry’s commitment to financial discipline. Shares of oil companies in both Europe and the US have lagged the gains in the crude price throughout 2018. Shell’s monster cash numbers posted on Thursday didn’t prevent a sell-off. Investors were more enthusiastic about Exxon and Chevron - both rose in New York after reporting earnings.
Even for Shell, most analysts think the discipline is real, and it will just take more quarters of consistently good delivery to see the stock price catch up.
“While quarterly volatility may be off-putting for some, even when to the upside, we think Q3 provides good evidence that Shell’s financial framework can work,” said Biraj Borkhataria, at RBC Capital Markets, in a note. “In our view the shares are materially undervalued at these levels.”

[bbonsall] 03/11/2018 19:12

If Shell buys back $25 billion of shares by end of 2020 it could reduce shares in issue by nearly 1 billion. This means shares in issue will be 75% of current number.
For the capital value to remain the same as now it means the share price should be 33% higher than now.
So an share price of £32-£36 would represent no growth of Shell at current values. This needs thinking about! The market appears to be ignoring this significant buy back.

[trev1223] 03/11/2018 18:50

tornado:
Your strategy appears sound (buying in the dips). I wish you good luck in trying to achieve a purchase at under £24.

[tornado12] 03/11/2018 06:22

As Shell say every time we have update, they are a “world class investment case”
I have to agree and for me the giant is very low risk in losing the dividend, but would like over next few years they budge the divi growth by at least inflation. This would then give stronger platform for share price growth

[tornado12] 03/11/2018 06:13

Thanks Trev for the input, and is tempting but hoping to get under 24£. I won’t wait forever but I have already a 5 figure sum in Shell so not losing out for sure.

[trev1223] 02/11/2018 18:54

tornado
Today was a good time to get back in.

[tornado12] 02/11/2018 17:55

I see the 25 M£ + day buy backs are running again :-) I’m looking to get back in at some point, it’s all about timing. This is part of my retirement plan

[waldron] 02/11/2018 17:25

Total
50.25 -0.77%


Engie
11.91 -0.50%

Orange
13.955 -0.64%


FTSE 100
7,094.12 -0.29%
Dow Jones
25,165.97 -0.85%
CAC 40
5,102.13 +0.32%



Brent Crude Oil NYMEX 72.62 -0.18%
Gasoline NYMEX 1.71 -0.73%
Natural Gas NYMEX 3.25 +0.25%



BP
533.3 -1.51%


Shell A
2,402.5 -0.91%


Shell B
2,455.5 -0.79%


MUST ADMIT I HAD THOUGHT THIS WOULD CERTAINLY BE THE WEEK ONCE AGAIN TO GO BEYOND THE 2475 to 2575p BOX

[scobak] 02/11/2018 14:41

Never said that RDS was end of life. however the share buyback will result in approx 10% added to eps by the end of the final buyback period. This will be reflected in share price increase.
Otherwise fjg I wholeheartedly agree with your rationale.

[fjgooner] 02/11/2018 02:04

But I think that we would all agree that Shell bringing in a revenue (growing towards the early 2020s) of well over a billion dollars a day is in no way an 'end of life' business.

That level of revenue is enough to buy a FTSE350 company every day of the year.

[scobak] 01/11/2018 20:34

Just another dimension with share buy backs, they are very much an accounting form of window dressing. Was often used by 'end of life' businesses / industries to flatter earnings per share. So if earnings static but sharebase reduced, those earnings per share are greater, and earnings per share are a headline statistic.