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Royal Dutch Shell PLC saddled with a mountain of debt


By John Donovan

The Wall Street Journal does not mince its words.

In an article published today, it says that Shell has saddled itself with a mountain of debt as a result of its takeover of the BG Group.

Article author Sarah Kent points out Shell’s  debt-to-equity ratio is far higher than its major rivals.

The same concern is expressed in a related Wall Street Journal article: Shell’s New Year Promise: Slimming Down

Although Shell promised to offload $30 billion of assets, it has thus far sold only $5 billion worth.

This is despite the optimistic assurances given to investors and analysts by CFO Simon Henry when selling them on the BG deal.

The shortfall may explain his early sudden departure.

Looks like Henry’s orderly disposal plan may turn into a firesale.

Shell predictably refuses to comment.

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