|Bid||30.01 x 1200|
|Ask||30.32 x 1000|
|Day's Range||29.74 - 30.64|
|52 Week Range||19.19 - 67.45|
|Beta (5Y Monthly)||0.91|
|PE Ratio (TTM)||12.40|
|Forward Dividend & Yield||3.14 (10.30%)|
|Ex-Dividend Date||May 14, 2020|
|1y Target Est||52.50|
The recent and rapid rally in oil prices appears to have been thwarted by some worrying rumors surrounding China’s economic recovery
(Bloomberg) -- Royal Dutch Shell Plc and Eni SpA won dismissal of a $1 billion U.K. lawsuit brought against them over allegations they knew about bribes in a Nigerian oil deal.A London judge ruled Friday that England has no jurisdiction to try the case as it involves the same essential facts as a separate Italian criminal case.The ruling is a victory for the oil companies, which have been clouded by accusations in a years-old dispute over exploration rights to a tract in the Gulf of Guinea called Oil Prospecting License 245 that has spread to courtrooms throughout Europe.The Nigerian government claims that money the companies paid to acquire the oil exploration license in 2011 was diverted to bribes and kickbacks. It says Shell and Eni are partly responsible for the behavior of Nigerian officials who used a $1.1 billion payment to acquire the oil block for personal enrichment. Shell and Eni have denied any wrongdoing.“We maintain that the 2011 settlement of long-standing legal disputes related to OPL 245 was a fully legal transaction with Eni and the Federal Government of Nigeria, represented by the most senior officials of the relevant ministries,” Shell said in a statement.Eni said it was pleased with the decision and added that the U.S. Securities & Exchange Commission and U.S. Department of Justice have also closed investigations into the Italian company’s involvement with OPL 245.The Nigerian government said in its own statement that the Italian criminal case has a completely separate legal basis from the U.K. civil case and it would seek permission to appeal.The ruling does not affect ongoing Italian criminal proceedings, where Nigeria has a separate legal claim.(Updates with Eni comment in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
An English court threw out a $1.1 billion case Nigeria had brought against Royal Dutch Shell and Eni related to a dispute over the OPL 245 oilfield, a court document showed on Friday, while a related trial in Italy continues. The Nigerian government filed the case in 2018 at a commercial court in London alleging payments made by the companies to get the oilfield licence in 2011 were used for kickbacks and bribes. Justice Butcher said in his ruling seen by Reuters that the High Court "must decline jurisdiction over the action against" Shell and the other defendants.
(Bloomberg Opinion) -- After 2008, metals and oil rebounded together from the depths of the financial crisis, as China’s consumption of raw materials took off. This time, their recoveries may look quite different.Crude faces a lengthy convalescence from the catastrophic lows of April, when U.S. oil plunged into negative territory. Industrial metal prices have fallen far less, and look healthier: Closures to control the spread of coronavirus in countries like Peru have squeezed production, just as China is gearing up. Add in Beijing’s infrastructure plans, expected to be outlined at the National People’s Congress meeting starting Friday, plus the prospect of green stimulus and more mineral-intensive clean energy, and the outlook looks rosier still.Copper is indicative of these divergent paths. Out of other metals, Bloomberg Intelligence reckons it has moved most closely with oil over 160 years — a coefficient of 0.96 over that time. The link is beginning to weaken, and the current crisis will only make that more pronounced.Why so?Oil has certainly made an impressive comeback over the past few weeks: Many producers are still losing money, but West Texas Intermediate is back above $30, and there was no repeat of April’s crash when the contract rolled over this week. Brent crude is up almost 90% after last month dropping below $20. That’s because the supply glut has shrunk, thanks to the end of Russia’s price war with Saudi Arabia and significant involuntary shutdowns among U.S. producers, easing concerns about global storage capacity. That’s helpful, even if improving prices could bring back some shale activity.Metals have also taken a hit to output from coronavirus lockdowns in Latin America and elsewhere. In late April, BMO analysts estimated these affected 23% of global capacity for copper, 15% for nickel and 24% for zinc. Projects like Anglo American Plc’s Quellaveco in Peru, where workers downed tools, could see delays. That’s helped copper to rise back toward a modest $5,500 per metric ton.Supply reductions aren’t enough to make a difference without better demand, though, and that’s where the divergence becomes clearer. China tells part of the story. Construction activity and manufacturing are on the mend, drawing down metal inventories. It’s true that oil consumption is reviving, too: China’s taxis, buses and cars have been back at normal levels since early April, and traffic congestion has returned. But while that’s good news for gasoline and local refiners, it’s hardly salvation for global oil. Recoveries elsewhere are progressing more slowly and most of the world’s aircraft are still grounded. Simply put, China’s recovery matters more for metals, with the country accounting for roughly half of global consumption. By comparison, it makes up less than 14% of oil demand.Now consider the cautious nature of Beijing’s economic reboot, which is a signal for other countries, and the bumps along the post-pandemic road to recovery. These make the picture darker for oil. Factories might keep producing washing machines, but more of us will stay away from leisure travel and work from home if incidents like the reappearance of the virus in China’s northeast repeat themselves. It’s not even clear that an aversion to the risks of public transport will get us back in our cars again, as my colleague David Fickling has pointed out. Demand for personal protective equipment like masks is hardly enough to offset a drop in gasoline and even jet fuel, which past experience suggests will take years to recover.The NPC is expected to include a revived version of past efforts to develop the country’s western hinterland, alongside other stimulus efforts. No one anticipates a boost akin to what was seen in 2008. Even a similar amount would probably have a weaker multiplier effect — yet the boost will matter for copper, zinc and more. And that’s before the wider green fiscal push, in and outside China, that favors mined materials needed for batteries, grids and energy storage. The solar industry in Asia-Pacific alone is expected to use around 378,000 tons of copper by 2027, almost double 2018 levels.Mark Lewis, global head of sustainability research at BNP Paribas Asset Management, splits the long-term pressures in three: the world’s push toward reducing carbon emissions, cheap renewable energy and air pollution, highlighted by the clear blue skies of recent weeks. Add in the behavioral changes brought by the pandemic and the future of oil is more uncertain than ever, he argues. With even Royal Dutch Shell Plc arguing that peak oil demand will come sooner than expected, it’s hard to disagree.There may not be a uniform global green stimulus, and some ambitions will remain just that. Yet a World Bank report last week gives an indication of the potential growth story: It says the goal of limiting the global temperature rise to 2 degrees Celsius will require production of graphite, lithium, and cobalt to ramp up by more than 450% by 2050, compared with 2018, in order to meet energy storage requirements. Aluminum and copper, used across technologies, will also be in demand. And that’s excluding infrastructure like transmission lines.In the future we’ll still need oil. We just might need metals more.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tanzania has seen some successful exploration results in recent years, but has failed to take advantage of it as a result of budding bureaucracy
(Bloomberg) -- Royal Dutch Shell Plc will use measures including voluntary severance for staff to bolster its finances as the coronavirus pandemic batters profits, according to people with knowledge of the matter.In a note to staff, Chief Executive Officer Ben van Beurden wrote that the organization was being reshaped to make it leaner and more resilient, the people said. The company has already slashed spending and surprised investors with a two-thirds cut to its dividend.Shell isn’t the only company making big changes to withstand the unprecedented oil-industry disruption caused by Covid-19. Most of its peers have made big spending reductions, while Norway’s Equinor ASA also cut its dividend.BP Plc promised its employees their jobs were safe at least until the end of June, but companies including Chevron Corp., Marathon Oil Corp. and Halliburton Corp. are laying off employees.As well as the offer of voluntary severance, the people said that Shell is seeking savings by significantly scaling back external recruitment and reviewing the contracts of expatriate staff. There could be further redundancies related to the pandemic in the second half of the year, they said.“Over the coming months we will go through a comprehensive review of the company. Where appropriate we will redesign our organization to adapt to a different future and emerge stronger,” Shell said by email in response to questions from Bloomberg about van Beurden’s memo.The CEO wrote that Shell will have a clearer picture of what the reorganization of the company will look like by the end of the year, with some divisions being affected more than others, the people said.Van Beurden reiterated that there wouldn’t be a group performance bonus for anyone in the company, having first announced the measure when Shell reported its first quarter results. The memo also added that there should be low expectations for salary increases over the next 18 months, the people said.(Updates with other companies’ layoffs in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The coronavirus pandemic has indelibly impacted the global energy sector. Although the demand for oil has noticeably dropped and prices have plunged, the pace of shift to renewable energy from fossil fuel is still uncertain.
Unlike last month when the price fell below zero, oil prices have seen some signs of life in May.However, now the question is how sustainable this potential recovery is. So we took two biggest oil companies to get a better idea of the overall market.Clash of Titans If we look on a market cap basis, ExxonMobil Corporation (NYSE: XOM) is the biggest oil and gas company in the world whereas Royal Dutch Shell (NYSE: RDS-A)(NYSE: RDS-B) leads the way in revenue. But despite both being massive companies, they are also both massive underperformers as they have both lost about half of their value in the past five years.If we look at dividends, Exxon is a dividend aristocrat as it upped its payout annually for the last 37 straight years. But considering the current climate, Exxon could consider following Shell's late April surprising decision to cut dividends. This is Shell's first dividend cut since World War II that took Shell from being the highest yielder among the five oil majors to the lowest, causing its share price to tumble.Oversupply And Low DemandThe main problem remains low prices for oil, natural gas and refined products due to global oversupply and lack of demand due to COVID-19.In its most recent earnings report, which included the initial days of the global pandemic, Exxon posted a much wider Q1 loss, though this was mostly due to noncash write-downs on the value of the company's oil inventories.But if we look at revenue, Exxon was only down 11.6% whereas that of Shell dropped 28.3% year-over-year. Adjusted net income, which strips out special items, was even worse for Shell, falling -47.2% compared to ExxonMobil's -4.1%. Operating cash flows are nearly identical once stripped down for the inventory decrease, $7.3 billion for Exxon and $7.4 billion for Shell. But we should keep in mind that this was in a quarter in which the average per-barrel price of Brent Crude was $50 whereas in the second quarter it dropped to low $30s.Although Exxon seems better situated to weather the storm as it also has a lower debt load, both companies are working on cost cuts both for their capital and operational budgets and the results of these efforts are yet to be seen. Despite the efforts made to stabilize the oil market, the reality that it is still a mess that is not going to vanish overnight as both of its biggest players are looking to years of underperformance ahead.This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases - If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors - IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.com Questions about this release can be send to firstname.lastname@example.orgThe post Is There Any Hope for Oil? appeared first on IAM Newswire.See more from Benzinga * Target And Walmart Prove There's Still Some Life In Retail * Telemedicine A COVID-19 Winner * Detroit's Big 3 Automakers Resume Production(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Royal Dutch Shell evacuated some 60 foreign staff from Iraq's Basra Gas Company as a security measure following a protest over delayed pay, company officials said on Thursday, adding production was unaffected. The staff were flown out of the country on Wednesday after workers protested at the headquarters of Basra Gas Company (BGC), a venture between state-owned South Gas Company, Shell and Mitsubishi, to demand payment of their delayed salaries, officials said. "Shell confirms that as result of a security breach at the accommodation camp of Basra Gas Company, we have temporarily relocated Shell secondees," Shell said in emailed comments.
The United States Oil Fund, the biggest oil exchange-traded fund in the world, said on Thursday that RBC Capital Markets had stopped it from buying any more oil futures, in a step that could force USO to scale back or adjust its operations. Meanwhile Royal Dutch Shell said it would no longer act as a dealer for WisdomTree — a move that pushed the fund manager to shut eight crude oil-based products as well as a carbon price tracker that have combined assets of about $550m. In March a drop in oil prices to the lowest level in almost two decades lured in a rush of amateur investors expecting to see a rebound, but a fresh plunge in prices the following month left many of them nursing losses.
Probably the most significant piece of recent news from either company is Shell's late-April announcement that it was cutting its dividend by two-thirds, down to just $0.32/ADR share. This surprise move, the company's first dividend cut since World War II, took Shell from being the highest yielder among the five oil majors to the lowest.
Some positive news about a possible COVID-19 vaccine as well as signs of the market tightening has caused oil to rally above $30
Dozens of demonstrators chanting "Shell must fall" gathered on Tuesday outside the oil giant's headquarters in the Netherlands, where a virtual annual shareholders' meeting was underway. Roughly 30 activists from environmental groups Greenpeace, Extinction Rebellion and Code Red sang and danced in protest at the Hague offices of Royal Dutch Shell. During the shareholders' meeting, some large investors were expected to press the company for more concrete action to reduce its environmental footprint and meet the Paris climate goals.
U.S. liquefied natural gas (LNG) developer NextDecade Corp said on Monday it will not decide whether to build the proposed Rio Grande LNG export plant in Texas until 2021 as demand destruction from the coronavirus affects the global LNG market. NextDecade also said Monday that it took several steps to preserve liquidity, including an 18% decrease in headcount, furloughing 14% of staff, and voluntary reductions in pay for its chief executive and other members of the executive team. Rio Grande is one of several North American LNG projects delayed this year as government lockdowns to stop the spread of the coronavirus cut global demand for natural gas and other forms of energy.
The Zacks Analyst Blog Highlights: JPMorgan Chase, AbbVie, Royal Dutch Shell, Gilead Sciences and Anthem
Royal Dutch Shell's historic 66% dividend cut has paved the way for its British rival, BP (NYSE: BP), to secure the crown as the oil major with the highest dividend yield. BP management recently reaffirmed their decision to keep the quarterly dividend unchanged as of Q1 2020, meaning BP's dividend yield stands at a whopping 11.3% as of this writing.
U.K. stocks joined a global rally on Monday, as the chairman of the Federal Reserve said the U.S. central bank still had tools to fight the economic crisis and as data showed new virus cases growing at the slowest rate in months.
Europe's top oil and gas companies have diverted a larger share of their cash to green energy projects since the coronavirus outbreak in a bet the global health crisis will leave a long-term dent in fossil fuel demand, according to a Reuters review of company statements and interviews with executives. The plans of companies like BP <BP.L>, Royal Dutch Shell <RDSa.L> and Total <TOTF.PA> are in step with the European Union's efforts to transition to a lower-carbon economy and away from a century-old reliance on oil, and reflect the region's widening rift with the United States where both the government and the top drillers are largely staying committed to oil and gas. Global oil majors have all cut capital spending sharply as worldwide stay-at-home orders triggered by the coronavirus outbreak slammed fuel demand and sent oil prices to record lows.
Total just came in from the cold. This month the French oil major announced plans to get to net-zero carbon dioxide emissions by 2050, thus joining other European oil and gas companies that are promising to wind down their fossil-fuel businesses to tackle climate change. This ambition by one of the world’s largest energy producers is to be applauded.
Shell's stock is now down by more than 50% in 2020. Let's take a closer look to see if Shell looks like a buy, even without a best-in-class dividend yield. Among the five oil majors, Shell has consistently been a top dividend yielder for the last five years.
The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, BP, Equinor and Royal Dutch Shell