Shell Share Discussion Threads

[waldron] 12/3/2019 17:53

FTSE 100
7,151.15 +0.29%
Dow Jones
25,543.33 -0.42%
CAC 40
5,270.25 +0.08%


Brent Crude Oil NYMEX 66.70 +0.18%
Gasoline NYMEX 1.82 -0.56%
Natural Gas NYMEX 2.77 -0.04%

(WTI) - 12/03 18:25:00
56.85 USD -0.16%


Eni
15.164 +0.28%

Total
50.66 -0.20%


Engie
13.335 +0.41%

Orange
13.525 -0.51%


BP
536.6 +0.19%


Shell A
2,349 +0.45%


Shell B
2,359.5 +0.40%


Still in the 2275 to 2375p BOX but seems to be slowly rising

[fjgooner] 12/3/2019 11:54

Then perhaps Shell should be diversifying ... luckily they are. :)

On Bloomberg TV and website, including a very interesting 8 minute interview of Maarten Wetselaar by Alix Steel:



Shell Says It Can Be World's Top Power Producer and Profit

By Kevin Crowley, Alix Steel, and Kelly Gilblom

‎11‎ ‎March‎ ‎2019‎ ‎20‎:‎09 Updated on ‎12‎ ‎March‎ ‎2019‎ ‎10‎:‎40

Oil major aims to be No. 1 electricity company by early 2030s

Shell seeks 8-12% returns in historically low-margin business

Royal Dutch Shell Plc plans to become the world’s biggest power company within 15 years, a move that suggests it sees climate change as a bigger threat to its business than electricity’s historically weak returns.

The world’s No. 2 oil explorer by market value is spending as much as $2 billion a year on its new-energies division, mainly to grow in a power sector it sees delivering 8 to 12 percent annual returns, according to Maarten Wetselaar, director of Shell’s integrated gas and new-energies unit.

“We believe we can be the largest electricity power company in the world in the early 2030s,” Wetselaar said in an interview with Bloomberg Television on Monday. “We are not interested in the power business because we like what we saw in the last 20 years; we are interested because we think we like what we see in the next 20 years.”

Investors are putting pressure on companies to protect their business from a shift to lower-carbon fuels, driven by new laws and consumer choices. That pressure is especially acute in Europe, where Norway’s Finance Ministry last week instructed its $1 trillion sovereign wealth fund to divest some oil and gas companies to shield it from a “permanent decline” in crude prices.

BP, Total

The region’s biggest oil majors, such as Shell, BP Plc and Total SA, were spared in the decision, partly because they’re bolstering their investments in renewables. Besides Shell’s move toward power, BP has purchased the U.K.’s biggest car-charging company, while Total has bought electricity provider Direct Energie. They’ve also invested in solar and wind-power production.

For Shell, the electricity business is still in an experimental phase. Last month, the vice president of its new-energies unit, Mark Gainsborough, declined to estimate when it’ll achieve higher returns, but indicated it will introduce new combinations of power products that are more profitable than those from a traditional utility.

“Being smarter with its molecules across the value chain is important,” said Christyan Malek, head of European, Middle East and African oil and gas research at JPMorgan Chase & Co. “But generating a return as good as its oil and gas business will be the key challenge.”

Shell’s acquisitions in power so far include U.K. electricity provider First Utility, car-charging operator NewMotion and a stake in U.S. solar company Silicon Ranch Corp. It has also announced it’s bidding for Dutch utility Eneco, which provides low-carbon power to industrial users and offers apps and other technology to manage electricity consumption.

Even with those purchases, achieving its targets around power will probably require a “major overhaul” of its investment priorities, according to Will Hares, an energy analyst at Bloomberg Intelligence. Half of Shell’s capital is allocated to its upstream business, which finds and pumps oil and gas, with only about 5 percent dedicated to new energies.

The company remains cautious about making big spending changes, according to Wetselaar, who said “we want to prove to ourselves that the hypothesis works before we scale it beyond our current commitments.”
European majors are increasingly setting themselves apart from their American counterparts such as Exxon Mobil Corp. and Chevron Corp. due to pressure from regulators and investors.

BP, Shell, Total and Equinor ASA have all made specific statements and investments around low-carbon fuels. At International Petroleum Week in late February, Total’s upstream oil and gas boss said oil may only make up 30 percent of the company’s portfolio in 2040, with cleaner natural gas making up 50 percent and renewables and power accounting for the rest.

Meanwhile, Exxon and Chevron have been slower to make changes. Both were later than their European peers to join a key industry-wide climate investment initiative, while each has doubled down on oil production in shale. Both have said they’re committed to helping de-carbonize energy but have doubted the wisdom of altering their business model.

The subject was addressed this week at the CERAWeek by IHS Markit conference, which brings together oil executives from across the world in Houston. Equinor Chief Executive Officer Eldar Saetre took a moment on the main stage to say the fossil-fuel business is increasingly problematic.

“Collectively we’re not doing enough on climate change,” he said. “Not taking action is unsustainable.”

[p0pper] 12/3/2019 11:41

fjg, totally agree with that with one caveat, the world is awash with oil, something has to give as the Saudi's won't keep cutting virtually alone ( or as big as they are cutting ) forever as they can't afford to.

[fjgooner] 12/3/2019 11:35

@oilretire

Re Barclays reiterated price target of £32.50 ... "to get halfway there feels like it could be a hard slog into eternity"

I'd agree that the price has been rather static for a few months but, if you recall, this time last year RDSB rocketed from £22.01 on March 19th to 28.45 just 2 months later.

A similar 29.25% lift from today's £23.56 would take RDSB to £30.45. Add in a premium of 15p for RDSB (as Barclay's target is for RDSA) equates to £30.60.

Add in the fact that Shell's strategy is finally coming to fruition with very strong free cash flow and some major projects coming on line, and £32.50 does not seem that much of a stretch. Especially if the US-China trade talks are positively settled and energy growth forecasts are revised upwards.

Ever the optimist ...

[la forge] 12/3/2019 07:15

TIDMRDSA TIDMRDSB

ROYAL DUTCH SHELL PLC FOURTH QUARTER 2018 EURO AND GBP EQUIVALENT DIVIDEND
PAYMENTS

The Hague, March 11, 2019 - The Board of Royal Dutch Shell plc ("RDS") today
announced the pounds sterling and euro equivalent dividend payments in respect
of the fourth quarter 2018 interim dividend, which was announced on January 31,
2019 at US$0.47 per A ordinary share ("A Share") and B ordinary share ("B
Share").

Dividends on A Shares will be paid, by default, in euro at the rate of EUR0.4181
per A Share. Holders of A Shares who have validly submitted pounds sterling
currency elections by March 1, 2019 will be entitled to a dividend of 35.94p
per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate
of 35.94p per B Share. Holders of B Shares who have validly submitted euro
currency elections by March 1, 2019 will be entitled to a dividend of EUR0.4181
per B Share.

This dividend will be payable on March 25, 2019 to those members whose names
were on the Register of Members on February 15, 2019.

Taxation - cash dividend

Cash dividends on A Shares will be subject to the deduction of Dutch dividend
withholding tax at the rate of 15%, which may be reduced in certain
circumstances. Non-Dutch resident shareholders, depending on their particular
circumstances, may be entitled to a full or partial refund of Dutch dividend
withholding tax.

[oilretire] 12/3/2019 04:35

re - Royal Dutch Shell RDSA Barclays Capital Overweight 3,250.00 - Reiterates


Even to get halfway there feels like it could be a hard slog into eternity

[fjgooner] 12/3/2019 03:20

Could be an interesting day ahead of us today ... :)

[waldron] 11/3/2019 17:28

FTSE 100
7,130.62 +0.37%
Dow Jones
25,531.34 +0.32%
CAC 40
5,265.96 +0.66%


Brent Crude Oil NYMEX 66.41 +1.02%
Gasoline NYMEX 1.82 +1.14%
Natural Gas NYMEX 2.77 -3.18%

(WTI) - 11/03 18:06:38
56.63 USD +0.89%

Eni
15.122 +1.03%

Total
50.76 +0.85%

Engie
13.28 +0.30%

Orange
13.595 +0.22%


BP
535.6 +0.24%

Shell A
2,338.5 +0.52%


Shell B
2,350 +0.66%

[fjgooner] 11/3/2019 17:25

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 35.94p per B Share.

----

Which seems pretty fair as this equates to an exchange rate of $1.3077.

Cable's currently at $1.3137, so I'd assume that the $1.3077 is derived as an average across the course of the trading day.

[micos] 11/3/2019 14:10

thanks fjgooner

[fjgooner] 11/3/2019 12:45

Neither.

This is normally announced just after 5pm GMT.

[micos] 11/3/2019 11:53

Has the exchange rate been announced or is it delayed?

[maywillow] 11/3/2019 09:27

Spriha Srivastava
@spriha
Holly Ellyatt
@HollyEllyatt




Key Points

It’s a crucial week for sterling with Brexit at the forefront of investors’ minds. U.K. Prime Minister Theresa May is facing a crunch series of votes this week that will determine the course of the U.K.’s exit. On Tuesday, U.K. lawmakers are voting on whether to accept her deal or not.
Brexit is expected to dominate a Eurogroup meeting of euro zone finance ministers on Monday ahead of an Economic and Financial Affairs Council (ECOFIN) meeting of all EU finance ministers Tuesday.

[knowing] 11/3/2019 09:11

11 Mar Royal Dutch Shell Barclays Capital Overweight 2,345.00 3,250.00 Reiterates

[waldron] 11/3/2019 08:56

fastFT Oil
‘Disorderly Brexit’ and trade spats would hit oil demand, IEA warns
Global uncertainties dictate consumer spending patterns, agency says




Anjli Raval 53 minutes ago

A “disorderly Brexit” could hit crude oil demand, the International Energy Agency said, marking the first warning from the body about how the UK’s exit from the EU could reverberate across global energy markets.

Consumption of oil depends on the strength of the world economy and the IEA said uncertainty stemming from trade spats as well as concerns about an ill managed Brexit were major factors dictating consumption patterns.

“Ongoing trade disputes between major powers and a disorderly Brexit could lead to a reduction in the rate of growth of international trade and oil demand,” the Paris-based intergovernmental organisation said on Monday.

These factors could amplify the slowdown in demand growth between 2019 and 2024 that the IEA expects, largely led by a slowdown in Chinese consumption. “The economic mood is not encouraging,” it added.

“Confidence in the health of the world economy has deteriorated,” the IEA said, in its closely watched annual report that forecasts the outlook for oil for the coming five years.

“Tighter financial conditions, rising trade tensions, slowing Chinese growth and a deceleration in global industrial activity have damped optimism,” the autonomous agency said.

Still, even as the rate of consumption moderates there “is no peak in sight” for absolute demand, the IEA said. Total oil demand will increase from 100.6m b/d in 2019 to 106.4m b/d in 2024.

Jet fuel, as a growing number of people around the world travel by air, and petrochemicals, which are used in plastics, will keep oil demand robust, the IEA said.

[waldron] 11/3/2019 08:36

Royal Dutch Shell RDSA Barclays Capital Overweight 3,250.00 - Reiterates

[sarkasm] 10/3/2019 12:49

DIVIDEND


Pounds sterling and euro equivalents announcement date March 11, 2019
Payment date March 25, 2019

[sarkasm] 10/3/2019 12:44

March 28, 2019 IFRS16 update call

[adrian j boris] 10/3/2019 11:35

The oil price is caught in a tug of war between the bulls and the bears

Hussein Sayed says the commodity's fortunes are particularly dependent on the outcome of US-China trade talks


Hussein Sayed

March 10, 2019

Oil is caught in a tug of war between the bulls and the bears due to lack of a strong direction and market developments that offset each other. A case in point is Libya’s biggest oil field, which has just restarted, pressuring the commodity's price downwards. A few days before the development in Libya, however, crude oil rose on news that a production terminal in Nigeria had shut down following an explosion.

There are more factors in the oil markets that reflect these two examples. US Shale production keeps rising, sometimes offsetting Opec’s supply cuts and keeping prices rangebound. In other drivers, US-China trade deal optimism is countering negative sentiment about China’s slowdown. This pattern could be interpreted as positive news for the oil markets. After a sharp slump followed by a steep recovery, it could mean prices are more likely to stabilise now, possibly meaning a base-case scenario of $60 to $70 in the initial part of the second quarter.

A trade deal between the US and China is a key factor for the bulls. At the time of writing, optimism is riding high that the countries’ leaders President Donald Trump and President Xi Jinping can reach an agreement later in March. Signals from both sides of the dispute appear to be positive after negotiations made significant progress towards a deal.


On the other side of the coin, there are more indications that China’s leadership is concerned over gross domestic product growth following the government’s revised expectations for full-year results to range between 6 and 6.5 per cent. This could potentially indicate a reduced level of demand for crude oil, and keeps the bears satisfied about the potential downside for the oil price.

Opec and its allies are doing a good job of balancing the oil markets, maintaining supply cuts as needed and responding in a timely way to the threat of an over-supply. This factor is on the bullish side for oil and it appears the lesson has been well-learned from the dramatic slump in prices that shocked the markets in 2014-15. However, the bears are taking advantage of price slips whenever US Shale makes headlines about its ever-increasing production levels. This has been the case for several years and could continue to challenge the balance in the medium term, particularly if US rig counts continue to rise.

One change that could end up dominating the trend either way is the trade deal between China and the US. If it’s agreed, China could be back on the road to more robust growth, meaning stronger demand for oil and support for the commodity’s price. If trade tensions continue and a deal is not reached, there’s an increased risk of lower aggregate demand for oil and a knock-on pressure on the price. Which side will win the tug of war depends on further developments in the trade negotiations between the world’s two largest economies.

Hussein Sayed is the chief market strategist at FXTM

Updated: March 10, 2019 02:53 PM

[waldron] 08/3/2019 17:43

FTSE 100
7,104.31 -0.74%
Dow Jones
25,341.5 -0.52%
CAC 40
5,231.22 -0.70%

Brent Crude Oil NYMEX 64.66 -2.47%
Gasoline NYMEX 1.76 -2.35%
Natural Gas NYMEX 2.87 +0.03%


(WTI) - 08/03 18:10:10
55.1 USD -2.34%

Eni
14.968 -2.04%



Total
50.33 -1.35%


Engie
13.24 -0.30%

Orange
13.565 +1.04%

BP
534.3 -1.18%

Shell A
2,326.5 -1.50%


Shell B
2,334.5 -1.79%

[wbecki] 08/3/2019 16:55

Move by Norway’s $1T wealth fund to cut oil stocks excludes Shell, BP, others

Norway's proposal that its $1T sovereign wealth fund remove energy exploration and production companies from its portfolio spares the big integrated oil and gas producers such as Royal Dutch Shell (RDS.A, RDS.B), BP, Exxon Mobil (NYSE:XOM), Total (NYSE:TOT) and Norway's own Equinor (NYSE:EQNR).

“The integrated companies will most probably be the companies that will increase their investments in a much broader spectrum of the energy industry going forward,” Finance Minister Jensen says, citing their major investments in renewables.

[maywillow] 08/3/2019 15:09

OSLO (Bloomberg) -- Big Oil dodged a bullet.

Norway took a partial step in divesting oil and gas stocks in its massive $1-trillion wealth fund, approving the sale of smaller exploration companies while sparing the biggest producers such as Royal Dutch Shell Plc and Exxon Mobil Corp.

After more than a year of deliberation, the government on Friday approved excluding 134 companies classified as exploration and production companies by FTSE Russell, including Anadarko Petroleum Corp., Chesapeake Energy Corp., Cnooc Ltd. and Tullow Oil Plc. The proposal would see the fund sell about $7.5 billion in stocks.

“It reflects to a larger extent the risk we ourselves have -- the bulk of the state’s exposure in Norway is upstream activity,” Finance Minister Siv Jensen said. “We’re reducing our vulnerability by choosing to withdraw the fund gradually from this segment.”

The government goes part of the way in meeting a 2017 proposal from the fund, which rattled global markets by arguing for a full divestment of the sector to limit Norway’s overall exposure to oil. The plan was hailed as a potential huge step by climate activists, some of whom on Friday lamented the limited scope of the decision. It has been a hot-button issue in Norway, which is seeking to project an image as a responsible environmental steward while pumping oil and gas at a fast clip.

Sony Kapoor, managing director at think tank Re-Define, said in a message that the limited divestment “‘represents a victory of Big Oil lobbying over financial prudence and common sense.”

Jensen defended her decision to keep the big oil companies in the portfolio, citing their increased investments in renewable energy. Norway’s own oil company, Equinor ASA, is also increasing renewable energy investments, and even recently changed its name from Statoil.

“It would be sad if the pension fund would not be able to invest in those companies in the future,” Jensen said in an interview.

The partial move underscores the changing political climate in Norway, where opposition to oil and gas exploration is on the rise. Prime Minister Erna Solberg’s Conservative Party has been a long-time friend to the oil industry. Junior government coalition partner, the Liberals, were supportive even though they had backed a larger divestment.

Norway’s Labor Party, the biggest in opposition, also expressed support. “They are taking a more cautious step than what Norges Bank advised,” said Svein Roald Hansen, a Labor Party legislator. “But it’s better than no step at all. There seems to have been a tug of war within the government.”

The $1-trillion fund has been built up over the past two decades from oil and gas revenue and Norway also uses large chunks of income from its offshore fields each year to pay for its lavish welfare state. The managers of the fund, which is overseen by the central bank, therefore argued in their proposal that it makes little sense for Norway to be doubly exposed to oil both in its revenue stream and through its investments.