|Bid||51.00 x 20000|
|Ask||51.50 x 20000|
|Day's Range||49.00 - 49.00|
|52 Week Range||48.60 - 61.50|
|Beta (3Y Monthly)||0.51|
|PE Ratio (TTM)||9.87|
|Forward Dividend & Yield||3.38 (6.80%)|
|1y Target Est||N/A|
(Bloomberg) -- The rivalry between U.S. and Middle Eastern oil producers has jumped up a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades produced in Saudi Arabia, Abu Dhabi and Qatar. Once considered a one-off arbitrage, the flow of American oil to Asia has increased in recent years.“It’s another tasty entree on the oil buffet table that may be quite appetizing for some of the Asian buyers,” said John Driscoll, chief strategist at JTD Energy Services Ltd. in Singapore. “Considering that U.S. crude exports have steadily been ramping up, this move could be disruptive for the traditional suppliers in the Middle East.”While U.S. shipments of grades such as WTI Midland and Eagleford are typically priced off the American benchmark WTI, Shell’s offer makes it easier for buyers to compare it against similar-quality oil that refiners across South Korea, Japan and China typically take. The crude can be transferred to other vessels in the Malacca Strait near Singapore, making the logistics less complicated for buyers across Asia.American exports have eroded the dominance of Middle Eastern crude in Asia, at a time when the Organization of Petroleum Exporting Countries and its allies are restricting their output in an effort to prop up prices. South Korean oil imports from the U.S. rose to about 8.5 million barrels in June, compared with 3 million barrels a year earlier. American shipments to Asia are likely to expand further due the start up of two Permian pipelines this year.The offer by Shell was made for a WTI Midland cargo for delivery on Oct. 15-25 at a premium of $4.55 a barrel to Dubai benchmark price, the traders said. The deal was subject to the buyer’s acceptance of a vessel named Phoenix Jamnagar.(Updates with chart.)To contact the reporter on this story: Sharon Cho in Singapore at email@example.comTo contact the editors responsible for this story: Serene Cheong at firstname.lastname@example.org, Andrew JanesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Royal Dutch Shell is launching electric vehicle chargers at petrol stations in Singapore, its first such foray in Southeast Asia, the company said on Monday. The electric vehicle charging service, 'Shell Recharge', will be available at 10 Shell petrol stations in Singapore by October, this year or about 20% of its retail network in the city-state, the company said in a statement. It added that the chargers typically provide from 0% to 80% charge in about 30 minutes, and are compatible with most electric vehicles in Singapore.
Royal Dutch Shell (RDS.A) stock has slumped 10.8% so far in Q3. Shell’s dividend yield has risen to 6.6%, the highest among its peers.
The world’s largest sovereign wealth fund shocked the world when it said it was dumping oil and gas stocks, but it seems to have had a change of heart
(Bloomberg) -- After revealing it wants to dump all oil stocks in a market-shattering bang in 2017, Norway’s $1.1 trillion wealth fund’s actual divestment could now be so small it hardly matters.The fund’s initial plan was heavily diluted in a political compromise that shielded the world’s biggest oil companies. Now technical adjustments look set to reduce the divestment by a further 30%, meaning the selloff would be smaller than the fund’s roughly $6 billion stake in oil giant Royal Dutch Shell Plc.It’s “like the mountain that gave birth to a mouse,” said Knut Anton Mork, an economics professor and former bank economist who’s followed the fund’s development and led a commission on its strategy.The world’s biggest wealth fund, built from decades of petroleum production to safeguard future generations of Norwegians, sent shock waves through global markets when it said it wanted to sell $37 billion in oil and gas stocks. While the fund argued it was a move to better spread Norway’s overall risk, the announcement was seized upon by climate activists as a key moment for fossil-fuel divestment movement.But the Norwegian government, fronted by two petroleum-friendly parties, decided in March to spare the big integrated companies such as Shell and BP Plc, partly because they invest in renewable energy. Instead the selloff would only include pure exploration and production companies, whittling down the divestment to about $7.8 billion. But that estimate was based on a category from index provider FTSE Russell that also included marketing, refining and petrochemical companies.Since then, the classification system has changed to include a “Crude Producers” category stripped of downstream. The fund will give its advice on the final details of the divestment to the Finance Ministry by mid-September, and declined to comment until then.Mork, as well as SpareBank 1 Markets Chief Economist Harald Magnus Andreassen, both said it’s likely that the Finance Ministry will pick the “Crude Producers” category for the divestment.The fund’s holdings in that group at the end of 2018 was $5.7 billion, according to Bloomberg calculations. Its 2.5% stake in Shell was worth $5.9 billion at the same time.Andreassen, who participated in a government-led panel that advised against the original plan because it viewed even that as a marginal insurance against lower oil prices, said there’s now “nothing left” of the fund’s initial proposal.“The resulting compromise doesn’t have anything to do with an oil-price insurance anymore,” he said. “This looks like a symbolic measure.”Steinar Holden, an economics professor at University of Oslo who supported the initial proposal, said it was “a pity” the plan didn’t go through and that the effect was now “small.”In an emailed response to questions, State Secretary Marianne Groth repeated the Finance Ministry’s argument that the divestment was appropriate even though the impact will “probably be limited.”“Since the state’s petroleum income mainly comes from upstream activity, it’s more accurate to remove upstream companies, rather than to exit a broadly diversified energy sector altogether,” she said.‘Scandalous’Activists and legislators are vowing not to give up on making the divestment more meaningful. The plan has not only lost its clout as a means to spread Norway’s risk, but its value as a figurehead for the global campaign against fossil fuels has also been diminished.The dilution of the proposal is “completely scandalous,” said Martin Norman, Greenpeace’s finance campaign director for the Nordics.The opposition Socialist Left Party, which has vowed to fight to broaden the exclusion to include integrated oil companies, said the latest estimate for the divestment, equal to just 0.5% of the fund’s value, only strengthened its point.“We’ve always viewed this as the first step,” lawmaker Freddy Andre Ovstegard said by phone. “We need to pull the fund out of all fossil energy.”Here is the likely disposal list:To contact the reporter on this story: Mikael Holter in Oslo at email@example.comTo contact the editors responsible for this story: Jonas Bergman at firstname.lastname@example.org, Stephen TreloarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shell stock (RDS.A) (RDS.B) fell 7% on August 1, its earnings release day. After its earnings, CFRA downgraded Shell stock and cut its price target.
Shell completes the sale of its shares in Shell Olie-og Gasudvinding Danmark B.V. to Norwegian Energy Company ASA for a consideration amount of $1.9 billion.
Shell recorded $3.5 billion in earnings for the second quarter, down 25 percent from the prior year. Cash flow from operating activities increased 16 percent to $11 billion, mainly on lower earnings, but was partially offset by lower outflows on commodity derivatives (i.e., as oil and gas prices slumped, Shell's hedges did their job). "We have delivered good cash flow performance, despite earnings volatility, in a quarter that has seen challenging macroeconomic conditions in refining and chemicals as well as lower gas prices," said chief executive officer Ben van Beurden.
Shell’s earnings fell almost 50% YoY to $3.0 billion in the second quarter. On an adjusted basis, Shell’s earnings fell 26% YoY to $3.5 billion.
British stocks edged down on Thursday led by a surging dollar and oil giant Shell’s profits miss. The FTSE 100 (UK:UKX) fell in early trading after disappointment over the Federal Reserve’s guidance over future easing spilled over to the U.K. The blue-chip index moved off lows as traders digested Fed Chairman Jerome Powell’s comments that Wednesday’s 25 basis point cut was a mid-cycle adjustment rather than the start of a “lengthy cutting cycle”.
Royal Dutch Shell is not taking any British-flagged tankers through the Strait of Hormuz amid heightened tensions with Iran in the vital chokepoint for oil shipments. "There are Shell-managed vessels in the Strait of Hormuz and that will probably continue to be the case. Currently, though, there are no UK-flagged vessels," Chief Executive Ben van Beurden told reporters.
Royal Dutch Shell PLC on Thursday said its profit plunged in the second quarter, with the company citing lower oil and gas prices and weaker refining margins, outweighing a rise in production.
The results missed analyst forecasts by a wide margin and triggered the biggest one-day retreat in Shell shares in over three years. Shell's performance fell short of expectations across the board but was most pronounced at its flagship liquefied natural gas unit. The company also blamed a weaker global economic and trade environment for hurting its chemicals business.
(Bloomberg) -- Royal Dutch Shell Plc got caught into the same earnings trap as many of its peers, reporting second-quarter earnings that fell well short of expectations as the slowing global economy hit everything from natural gas to chemicals.Profit in Shell’s integrated gas division was down by 25%, but earnings were lower across all of its businesses, including upstream oil and gas production, and refining and chemicals.“We’ve seen some very severe macroeconomic headwinds -- probably most pronounced in our downstream business where we saw some weaker refining margins -- but especially a much weaker trading environment for petrochemicals,” Chief Executive Officer Ben Van Beurden said in a Bloomberg TV interview on Thursday. “In our upstream, we’ve seen headwinds particularly in North American gas.”The Anglo-Dutch company is far more focused on natural gas than its peers, accounting for about a quarter of all the world’s traded liquefied natural gas volumes annually. While this division has helped generate record levels of cash at Shell in recent quarters, a global oversupply has caused prices to slump.Shell is the last big oil company in Europe to report earnings this quarter, rounding out a generally weaker picture for the industry. Eni SpA, Total SA and Equinor ASA reported lower-than-expected profit due to falling energy prices, although BP Plc surpassed even the highest analyst estimate as its production jumped.Cash BoostShell’s adjusted net income was $3.46 billion, down 26% from a year earlier, well below even the lowest analyst estimate. That’s the biggest earnings miss since 2016, according to data compiled by Bloomberg, and comes after a quarter in which Shell comfortably exceeded expectations, underscoring the recent volatility in the company’s earnings.“All in all, a pretty weak set of numbers across the board,” RBC analyst Biraj Borkhataria said in a note. “Given the strong share price performance recently, we would expect Shell to underperform the peer group in the near term.”Shares of the company fell 4.3% to 2,490.5 pence as of 8:13 a.m. in London, the biggest drop this year.Despite the big profit miss, cash flow from operations -- a measure of financial performance closely watched by analysts -- was actually up 16% from a year earlier to $11.03 billion. The figure was buoyed by a positive $600 million working capital movement.Total oil and gas output increased 4% to 3.58 million barrels of oil equivalent a day. In the quarter, Shell started up the massive Appomattox deepwater oil field in the Gulf of Mexico, a key project that’s been almost a decade in the making. It gave the go-ahead for the facility in 2015 after slashing costs following an oil price crash.In June, Shell also started sending LNG cargoes from Prelude, a giant floating facility off Australia that took a decade to bring to life. Cash generated by the shipments wasn’t enough to offset a slump in LNG prices in the second quarter, which were about 40% lower than in the same period in 2018. The slide has continued, with the cost of the fuel in Asia falling to the lowest in a decade.“What we are seeing this year is the confluence of both the startup of new LNG-producing facilities coming on the heels of a weak winter,” van Beurden said in an interview with Bloomberg TV.While much of the attention may focus on the decline in integrated gas earnings, Shell’s upstream business also had a big miss, according to Bloomberg Intelligence analyst Will Hares. It earned $1.34 billion compared with a Bloomberg-compiled estimate of $1.8 billion.(Updates with CEO comment in third paragraph.)To contact the reporter on this story: Kelly Gilblom in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European shares tracked Wall Street and Asian markets into the red on Thursday after the U.S. Federal Reserve dampened hopes of future cuts in U.S. interest rates, while Shell's lowest profit in more than two years knocked 4% off the oil major's value. The losses were limited, however, by other, more positive results, including from Barclays and Standard Chartered , as well as London Stock Exchange Group's $27 billion merger with financial information firm Refinitiv.
Royal Dutch Shell Plc got caught into the same earnings trap as many of its peers, reporting second-quarter earnings that fell well short of expectations.