Shell Share Discussion Threads

[waldron] 02/5/2019 18:53

Shell Beats Estimates And Rivals In Strong Q1
By Tsvetana Paraskova - May 02, 2019, 12:00 PM CDT
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Shell truck

Royal Dutch Shell (NYSE: RDS.A), one of the last supermajors to report Q1 earnings, was the one that stood out among the crowd with better-than-expected results, as its trading and natural gas businesses offset weak oil prices and depressed refining margins that plagued the other majors this earnings season.

Shell reported on Thursday earnings on a current cost of supplies (CCS) basis—its closest metric to a net profit closely watched by analysts—of US$5.3 billion in the first quarter this year, down by 2 percent annually, but beating by a lot the consensus forecast of US$4.5 billion.

While Shell’s profits were hit by lower chemicals and refining margins and lower realized oil prices—the factors that weighed on all supermajors in Q1—the Anglo-Dutch group reported stronger contributions from its trading division and higher realized liquefied natural gas (LNG) and gas prices compared to the first quarter of 2018.

Yet, Shell’s cash flow from operating activities fell by 9 percent to US$8.630 billion, while free cash flow dropped to US$4 billion in Q1 2019 from US$5.178 billion in Q1 2018.

“Shell has made a strong start to 2019, with the first quarter financial performance demonstrating the strength of our strategy and the quality of our portfolio of assets,” chief executive Ben van Beurden said, commenting on the Q1 results.
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In a sign of confidence in the direction of its business, Shell also announced today the next tranche of its share buyback program. Under the next tranche, Shell will repurchase up to US$2.75 billion worth of shares.

“The company’s intention is to buy back at least $25 billion of its shares by the end of 2020, subject to further progress with debt reduction and oil price conditions,” Shell said.

Following the results release, Shell’s shares in New York were up 1.7 percent at 12:08 EDT on Thursday.

By Tsvetana Paraskova for Oilprice.com

[waldron] 02/5/2019 17:55

US crude tumbles 4%, Brent drops below $70 as market shrugs off geopolitical turmoil
Published Thu, May 2 2019 • 5:44 AM EDT Updated 26 min ago
Tom DiChristopher
@tdichristopher




Key Points

Oil prices shrug off political crisis in Venezuela and stricter U.S. sanctions against Iran.
Asian refiners reportedly ask Saudi Arabia for more oil as the U.S. stops issuing sanctions waivers to Iranian oil buyers.
Poland will release oil reserves following the suspension of contaminated crude deliveries from Russia.

[waldron] 02/5/2019 17:49

US launches plan to choke off Iran’s energy exports, casting uncertainty over oil prices
Published 3 hours ago Updated an hour ago
Tom DiChristopher
@tdichristopher




Key Points

The Trump administration on Thursday stopped issuing waivers that allow several countries to buy Iranian crude.
Washington had issued the waivers to prevent global supplies from suddenly dropping and oil prices from spiking.
It remains to be seen whether Saudi Arabia and OPEC will fill the gap and how much Iranian oil will find its way to the market.

[waldron] 02/5/2019 17:33

FTSE 100
7,351.31 -0.46%
Dow Jones
26,192.17 -0.90%
CAC 40
5,538.86 -0.85%

Brent Crude Oil NYMEX 69.98 -3.05%
Gasoline NYMEX 2.01 -2.86%
Natural Gas NYMEX 2.57 -1.91%


(WTI) - 02/05 18:05:58
61.2 USD -3.55%


Eni
15.034 -1.21%



Total
49.38 -0.33%

Engie
13.21 +0.04%

Orange
14.105 +1.00%


BP
547.5 -0.82%


Shell A
2,453.5 +1.66%


Shell B
2,475 +1.89%

WHAT An impressive day, SHELL up but other oil majors down as are the oil prices

Now which BOX are we in

the 2375 to 2475p BOX or the 2475 to 2575p BOX

TOMORROW SHOULD CONFIRM

[fjgooner] 02/5/2019 16:35

In the webcast conference call this afternoon, Jessica Uhl all but confirmed that future dividend increases form part of the story that describes Shell's transition to a world class investment case.

I can't recall the exact words, but it's about 4/5ths of the way through the analyst calls if you wish to review.

[tornado12] 02/5/2019 16:29

White House, I agree with yr simple but true statement. Good solid results today from the top world class energy company. We need patience and all will come to the investors. Still a stonking divi and I’m sure with this strategy the divi will increase in the next year. I think this year will be pretty similar to 2018 for divi returns and in 2020 they will increase it.

[waldron] 02/5/2019 16:28

Shell: 'We'll prove we can make money in renewables'

Finance chief says oil and gas giant will deliver 'competitive and attractive returns' from energy transition
by Andrew Lee
02 May 2019 Updated 02 May 2019
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Shell won’t sacrifice “value for volume” while it proves its credentials as a leading player in the global power sector, said the oil and gas giant’s chief financial officer.

Jessica Uhl said Shell “won’t be pursuing scale for scale’s sake” as she responded to questions from financial analysts prompted by the group’s recent declaration that it wants to be “the world’s biggest power company” by the early 2030s.

Its recent determination to be a player in wind and solar is a big shift from a 2016 statement by CEO Ben van Beurden that 'no one makes money from renewables'.
Oil giant Shell aims to be 'world's biggest power company'
Read more

Asked to elaborate on its new ambitions, Uhl said Shell believes it can “lead and thrive” in a global shift to electricity, but added: “We’re going to prove we can make competitive and attractive returns before scaling up”.

The oil group this year has engaged in a spree of activity in the clean energy space.

That has included stakes in two innovative offshore wind technologies – one with Google-owner Alphabet – and the acquisition of battery pioneer Sonnen.

Shell has also indicated it plans to enter the UK offshore wind sector, adding to a range of existing interests in the sector.

It relaunched its UK utility business as a 100%-renewable electricity supplier and rebadged it with its own name.

Shell currently plans to put $1-2bn a year into New Energies up to 2020, but has previously said that could double as the oil and gas group ramps up its power sector presence.

[montyhedge] 02/5/2019 16:22

Crude down, profits down, but investors love Shell.

[the white house] 02/5/2019 16:13

Alternatively set up your own company and then you can implement your own poor decisions Never Sell Shell

[imperial3] 02/5/2019 15:32

Alternatively increase the dividend.

[holts] 02/5/2019 12:43

I dislike buybacks intensely , in perfect world they would help substantially , but things do not work like that , send us the cash instead please .

[crossing_the_rubicon] 02/5/2019 12:02

LOOKING GOOD BILLYRAY

"Feeling fine Louis"

:)

[skinny] 02/5/2019 11:30

About as consistent as the company :-

UBS Buy 2487.00 2900.00 Unchanged

RBC Capital Markets Sector Performer 2487.00 2750.00 Reiterates

[lippy4] 02/5/2019 10:59

this is one well run company,well done to them,and us the share holders...

[the grumpy old men] 02/5/2019 10:45

Certainly helps to under pin share price


Shell B
2,488.5 +2.45%

[fjgooner] 02/5/2019 10:42

It's also noteworthy that the fourth buyback has been ramped up to a hefty $2.75 billion for the next tranche up to July 29 2019. That's 37.5% higher than the first tranche and 10% higher than the third tranche that has just completed.

If that doesn't demonstrate confidence, nothing can.

[the grumpy old men] 02/5/2019 10:40

UBS Buy 2,900.00 - Unchanged

[fjgooner] 02/5/2019 10:27

@rogash 2 May '19 - 09:37 - 5731 of 5732

Can somebody explain to me that when the oil price is up almost 50% for the first quarter and exchange rate in their favour that they can say they have suffered from lower oil prices???

----

That's because the primary comparator is quarter on prior-year quarter.

So an oil price decline is in fact correct for the periods in comparison - for instance, 2019Q1 Brent Average of 63.83 vs 2018Q1 Brent Average of 67.23.

[the grumpy old men] 02/5/2019 10:15

The average realised price of oil fell five per cent from the first quarter of 2018, to $57.42, but was offset somewhat by gas prices, which increased eight per cent in the same period to $5.37 per thousand standard cubic feet.

Steve Clayton, the manager of a Hargreaves Lansdown fund, said that energy prices have affected Shell’s short-term results, but the company had managed to “grind out cash flow.”

“At first sight the numbers were pretty flat, but forecasts were for a much weaker outcome, so the market should be pleased with the results Shell’s delivered,” said Clayton, whose fund owns a position in Shell.

[petepitstop] 02/5/2019 10:09

Average price in Q4 2018 59.89USD per/barrel, Q1 2019 57.42.

[the white house] 02/5/2019 10:08

It was the standout result out of the BIG 5...so says the wise Thomas Adolff Head of Oil & Gas @ Credit Suisse

[the grumpy old men] 02/5/2019 10:06

rogash
2 May '19 - 09:37 - 5731 of 5732
0 0 0
Can somebody explain to me that when the oil price is up almost 50% for the first quarter and exchange rate in their favour that they can say they have suffered from lower oil prices??? sorry for being so thick.

GOOD QUESTION

IT BE LOCKING IN THE DISADVANTAGOUS HEDGES AND TRADING CONTRACTS

and mention only covers 1st quarter affect

no doubt mr gooner will explain adquately

[the grumpy old men] 02/5/2019 10:03

Shell B
2,491 +2.55%

LOOKING GOOD BILLYRAY