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Confidence in enlarged Shell-BG entity

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The week ahead in business and finance

By Tara Cunningham, business reporter: 30 OCTOBER 2016 • 11:41PM

Third Quarter Results: Tuesday, November 1

Confidence in enlarged Shell-BG entity was rattled after a very disappointing set of second quarter results, when it missed consensus forecasts by 52pc. Ahead of Tuesday’s interim results, analysts at UBS warned: “We don’t think it is reasonable to expect a significant uptick in earnings”.

Even though Royal Dutch Shell has a track-record of “volatile” quarters across the year, the bank highlighted that management have already been “quite explicit” in indicating that 2016 is likely to be “quite messy”.

Following the torrid performance in the second quarter, expectations City-wide are lower. The market remains concerns about the scale of the group’s potential impairment charges, which could prove to be a negative catalyst for the stock price. After announcing the disposal of its $1bn Canadian shale assets recently to cut large debts, investors will be keen to find out if it is on track to deliver its disposal programme. Questions will also be asked about the sustainability of the oil giant’s dividend.

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