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Posts under ‘BG Group’

BG Group posts profit ahead of Shell takeover

By Tara Cunningham, Business Reporter: 9:16AM GMT 05 Feb 2016 In its final results ahead of its landmark merger with Shell, BG Group has reported a pre-tax profit of $2.98bn, compared with a $2.3bn loss the previous year. FTSE 100-listed BG is due to be absorbed into the Anglo-Dutch giant by the middle of the month […]

Shell to cut 10,000 jobs as profits plunge by 80 per cent

Tom Bawden Environment Editor: 5 FEB 2016 Shell yesterday confirmed plans to cut 10,000 jobs now that its takeover of rival BG Group is set to go through, and raised the prospect of further redundancies, as it reported an  80 per cent slump in profits to a 13-year low. Two days after BP announced its […]

Shell’s Profit Down 56 Percent on Depressed Oil Prices

Shell’s Profit Down 56 Percent on Depressed Oil Prices By STANLEY REED: FEB. 4, 2016 LONDON — Royal Dutch Shell became the latest big energy company to file a damage report on the impact of depressed oil prices on Thursday, saying that its adjusted profit fell 56 percent in the fourth quarter of 2015 compared to […]

Shell Profits Plunge By 80% Amid Oil Slump

Shell is pressing ahead with a £36bn ($52bn) merger with exploration group BG. It has said 10,000 jobs will go across the two companies as a result. The deal has been approved by shareholders and will complete later this month. The industry has been hammered by the collapse in the world energy market which has […]

Shell confirms 10,000 job cuts and a steep profits fall

Royal Dutch Shell has confirmed it is cutting 10,000 jobs amid its steepest fall in annual profits for 13 years. It made $1.8bn (£1.23bn) for the fourth quarter of the year, compared with a $4.2bn profit for the same period the year before. Full-year 2015 earnings, excluding identified items, were $10.7bn, compared with $22.6 billion […]

Shell Needs To Divest Assets In Order To Afford BG Deal

By Andy Tully: 2 FEB 2016 Royal Dutch Shell is selling even more assets as it tries to cope with the persistent fall in the price of oil and its controversially expensive merger with BG group, approved last week by the shareholders of both companies. In a statement Monday in London, the Anglo-Dutch oil giant […]

Royal Dutch Shell: Here’s Why S&P Downgraded Credit Rating

By Muhammad Ali Khawar on Feb 2, 2016 at 6:49 am EST Standard & Poor’s (S&P) recently downgraded Royal Dutch Shell’s (ADR) (NYSE:RDS.A) credit rating from “AA-” to “A+,” as a result of the depressed crude environment. Since June 2014, crude oil prices have fallen more than 70%. The downgrade came just weeks after the […]

Is the BG-Shell deal offering value to investors? Why we must adopt new world thinking to navigate oil price peaks and troughs

by Tony Manwaring – 2 February 2016 5:55am Before the invention of the marine chronometer in the 1750s, choppy waters and treacherous currents prevented the calculation of longitude when at sea. Sailors charting a route were forced to rely upon dead reckoning to set their course. Today’s captains of industry coping with similarly volatile conditions are often accused […]

Shell backs out of Malaysian refinery business

By Jillian Ambrose: Feb 2016 Royal Dutch Shell will sell a majority stake in its Malaysian refining business as part of a strategy overhaul to combat plummeting profits. The Anglo-Dutch firm said it has agreed to sell a 51pc stake in the business for $66.3m to engineering group Malaysian Hengyuan International. The latest retreat comes alongside […]

Now gas joins oil on the way down

Shareholders in Royal Dutch Shell waved through the oil giant’s controversial £36bn takeover of BG Group last week despite concerns that the 40% plunge in the oil price since the deal was announced last year meant the chief executive, Ben van Beurden, was vastly overpaying. The Dutchman’s bet that the crude price will double from […]

Shell shares won’t run better just because BG’s been added to the tank

Shell shares won’t run better just because BG’s been added to the tank By Ian McVeigh: 31 Jan 2016 Shell’s bid for BG received an 83pc vote in favour from its shareholders. For some time it has been apparent that Shell was irrevocably set on this course in spite of the collapse of the oil price. […]

Pension funds at risk as BP and Shell’s near £10bn profits slump sparks dividend payouts fears

By JON REES FOR THE MAIL ON SUNDAY: 31 January 2016 Britain’s biggest oil groups will this week report a near £10billion slump in profits as the calamitous effect of the low oil price takes its toll on the blue chip giants. Both BP and Shell are expected to see their full-year profits for 2015 slashed […]

Did Shell Shareholders Just Seal Their Fate?

Alex Dumortier: (TMFAleph1): Jan 29, 2016 at 1:08PM U.S. stocks are higher in early afternoon trading on Friday, with the Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) up 1.76% and 1.72%, respectively, at 1 p.m. EST. Royal Dutch Shell plc’s ADRs (NYSE: RDS-A), up 0.58%, are underperforming the broad market, but are roughly in […]

Final approval for Shell mega-merger as BG Group shareholders vote in favour of the £36bn deal

By LAURA CHESTERS FOR THE DAILY MAIL: 29 JAN 2016 One of the largest takeovers in history finally got the go-ahead yesterday after BG Group shareholders followed those at Royal Dutch Shell in approving the £36billion deal. At a meeting in London, 99.53 per cent of BG shareholders voted in favour, a day after 83 […]

Final green light for Shell-BG takeover

By Jillian Ambrose: 2:19PM GMT 28 Jan 2016 BG Group shareholders have voted through Shell’s £40bn takeover bid by an overwhelming majority. The widely expected final nod for the landmark energy merger was voted through with 99.55pc of BG investors in favour, ending a controversial nine month campaign by Shell to cement its new strategic direction. […]

Shell gets green light for merger with BG Group to create world’s biggest liquefied gas trader

By LAURA CHESTERS FOR DAILY MAIL: 28 JAN 2016 Royal Dutch Shell’s mega-merger with gas giant BG Group looked set to be approved yesterday, creating the world’s biggest liquefied gas trader and boosting bankers’ bonuses. The £35billion deal got the go-ahead from Shell investors yesterday with 83 per cent of those voting backing the deal. […]

Shell/BG vote is a bet on oil prices bouncing back

By Andy Critchlow January 27, 2016 Shell Chief Executive Ben van Beurden can breathe easier after shareholders backed his big gamble on oil prices rebounding. Only 17 percent of investors voted against his $50 billion takeover of BG Group on Jan. 27. Cost savings estimated at $3.5 billion will help assuage some worries, and paying partly […]

Will 2016 Be Royal Dutch Shell’s Worst Year Yet?

There is a lot of pessimism regarding shares of Royal Dutch Shell (NYSE:RDS-A) (NYSE:RDS-B). Despite strong cash flow results behind its less-than-stellar earnings results, shares of Shell have been sinking faster than its Arctic drilling rigs (too soon?). Over the past 18 months, the company has lost more than half of its market capitalization while […]

Why the Shell-BG mega-deal was risky for the City as well as the oil giants

By Ashley Armstrong: 7:17PM GMT 27 Jan 2016 It has taken nearly 10 months, five competition regulators and 40 approvals from other global authorities. But Shell’s chief executive Ben van Beurden’s white-knuckle ride is finally drawing to a close. On Wedensday, van Beurden won overwhelming support for the £40bn takeover from his shareholders. However, his celebrations […]

Shell Needs to Repay Investors Who Backed Its Biggest Ever Wager

By Rakteem Katakey: Bloomberg.com: 27 JAN 2016 – 5.06 PM GMT Royal Dutch Shell Plc is under pressure to reward the faith of the more than 80 percent of shareholders who shrugged off the risks from slumping oil prices to back its record acquisition of BG Group Plc.  That won’t be easy: the rout in crude […]

Shell shareholders vote for BG Group takeover despite opposition

Terry Macalister Energy editor: Wednesday 27 January 2016 14.25 GMT At a specially convened general meeting in The Hague on Wednesday, 83% of Shell shareholders voted for the acquisition, despite claims that the Anglo Dutch group was paying too much for its rival during a period of collapsing oil prices. The reputation of Ben van Beurden, the […]

Shell Shareholders Approve Acquisition of BG Group

Shell Shareholders Approve Acquisition of BG Group By STANLEY REED: JAN. 27, 2016 LONDON — In one of the first major deals struck as oil prices plummeted, Royal Dutch Shell shareholders on Wednesday approved the acquisition of the BG Group, the Britain-based oil and gas producer, for about $50 billion. Analysts had expected major oil companies […]

Shell shareholders vote in favour of £40bn BG takeover

By Jillian Ambrose: 12:35PM GMT 27 Jan 2016 Shell shareholders have given the nod to the £40bn takeover of BG Group by a strong majority. The 83pc vote in favour of the plans paves the way for the creation of Britain’s largest public company, pending a separate vote by BG shareholders on Thursday which is widely […]

Shell shareholders approve $50 billion BG takeover

THE HAGUE | BY KAROLIN SCHAPS: Wed Jan 27, 2016 1:56pm GMT Royal Dutch Shell (RDSa.L) shareholders approved its $50 billion takeover of BG Group (BG.L) on Wednesday, clearing the last main hurdle to creating the biggest liquefied natural gas (LNG) trader in the world. BG shareholders are also expected to approve one of the biggest […]

Shell shareholders back takeover of BG Group

Investors in Royal Dutch Shell on Wednesday gave a green light to the group’s £35bn takeover bid for rival producer BG Group, making it a near certainty that the biggest energy deal in more than a decade will go ahead. However, a sizeable minority, some 17 per cent, were opposed.

Investors brace for BG merger vote

by Veselin Valchev: Tuesday, 26 Jan 2016, 08:42 GMT Royal Dutch Shell Plc (LON:RDSA) shareholders are due to vote on the £31 billion acquisition of smaller energy rival BG Group tomorrow, and all uncertainty in regards to the vote’s success seem to have evaporated. A slew of highly influential investors and advisers have publicly backed the […]

Oil price falls again as Shell shareholders prepare to vote on mega-merger with BG Group

The price tumbled as much as 3 per cent during trading yesterday when it emerged Iraq had produced a record high of oil and may even raise output further. The news comes as the market is already braced for more supply from Iran after sanctions were lifted.  Tankers have begun to leave Iran’s ports and […]

After The Big Short, here’s The Big Long: Shell-BG

By Nancy Hulgrave: 26 JAN 2016 “The Big Short” landed in UK movie theaters this weekend. The film adaptation of Michael Lewis’ best-selling novel tells the story of Wall Street outsiders who made a fortune predicting the subprime mortgage crisis and subsequent financial crash. If you watch the film — and you’re not too busy […]

Does the Shell/BG Group Deal Make Sense With Oil at These Levels?

On April 8, 2015, Royal Dutch Shell (NYSE:RDS-B) announced the terms of an agreement to buy BG Group for 383 pence in cash (or $5.51 per share) and 0.4454 Shell B Shares. If shareholders of both companies approve the deal when they vote on Jan. 28 and 29, the combined company will become the largest publicly […]

Shell’s BG Arbitrage Fades as Investors Look Set to Back Deal

By Rakteem Katakey and Ryan Chilcote: Bloomberg.com: 25 JAN 2016 Royal Dutch Shell Plc is on the brink of completing its biggest acquisition as shareholders look set to back its purchase of BG Group Plc. Risks to the deal completing have almost disappeared. The discount of BG’s shares to the offer price narrowed to a record low of 2.2 […]

Shareholder green light expected for Shell BG merger

MARTIN FLANAGAN: Monday 25 January 2016 Major investors are expected to back Shell’s troubled £36 billion takeover of rival BG Group this week despite reservations that the plunging oil price has made the deal less attractive than when first unveiled last year. David Cumming, head of equities at Edinburgh-based Standard Life Investments, has been one […]

Shell’s white elephant?

Sunday 24 January 2016 09.00 GMT Oil workers in Aberdeen will be watching events in the Hague this coming Wednesday as closely as anyone. They will be hoping that some miracle occurs so that Dutch and other international investors in Shell suddenly swing against the £35bn merger with rival BG that is coming up for a […]

Shell’s plan to take over BG is still in the pipeline

Sunday 24 January 2016 08.59 GMT It’s nine months since Shell announced it was buying BG Group in an agreed £47bn deal and almost everything has changed. Back in April, the oil price appeared to be recovering from its fall below $50 a barrel but the price has since plunged below $30. The International Energy Agency […]

Shareholders smile on Shell-BG tie-up

Dominic O’Connell Published: 24 January 2016 ROYAL DUTCH SHELL is expected to seal its takeover of rival oil and gas producer BG this week, with shareholders of both companies likely to vote in favour of the tie-up. The deal, the largest in oil and gas for a decade, will create a British giant, bringing together […]

Shell-BG deal set to get the green light this week

By GEOFF HO: Sun, Jan 24, 2016 Since the Anglo-Dutch oil giant unveiled its recommended takeover offer for BG last April, the price of crude oil has continued its descent and is now 41 per cent lower than when the deal was announced. On Friday the price of Brent crude oil closed at $31.18 (£21.86). The […]

Shell’s £36bn bid for BG is set to get boost from Brazil

By Jon Rees For The Mail On Sunday: 24 JAN 2016 Shell’s bid to acquire BG Group has been given a boost by news from Brazil that a much feared tax hike will be avoided. Fears of a larger tax bill on oil groups operating in Brazil had caused some investors to oppose the £36billion […]

BG investors should approve the Shell takeover even as the oil price languishes

By Joanne Hart for The Mail on Sunday: 24 JAN 2016 It is crunch time for investors in BG Group. Last April, it unveiled a recommended £47billion takeover by Royal Dutch Shell. This week, more than nine months later, both firms are asking shareholders to approve the deal. It has been an eventful gestation period. […]

Shell confident of backing for BG takeover as crucial vote looms

By Jillian Ambrose, Ben Martin: 7:00PM GMT 23 Jan 2016 A host of the world’s largest investors are expected to back Shell’s troubled multi-billion pound takeover of BG Group this week. Shell and BG shareholders will vote on Wednesday and Thursday to approve the deal, which has been called into question by the plunge in the […]

Royal Dutch Shell – BG Group Merger: Investors Remain Divided

By Muhammad Ali Khawar on Jan 22, 2016 at 8:14 am ESt A few days before the shareholders’ meetings on January 27 and January 28, the proposed merger of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BG Group has received major support from one of the biggest shareholders of Shell. According to Reuters, Norges Bank […]

Another low

By Ed Crooks: January 22, 2016: Jan 22, 2016 Another week, another fresh 12-year low for oil prices. The trigger for the latest leg down in crude, which took US benchmark West Texas Intermediate close to $26 per barrel on Wednesday, was a report from the International Energy Agency warning that “the oil market could drown […]

Hedge funds bet that shares in Shell and Sainsbury’s will fall further as both firms suffer disastrous starts to 2016

By City & Finance Reporter for the Daily Mail: 22 JAN 2016 Hedge funds are taking bets that shares in Royal Dutch Shell and Sainsbury’s will fall further. Shell, which is down nearly 15 per cent so far this year and is hoping to buy gas giant BG Group in a £36billion deal next month, […]

Shell-BG merger gains support ahead of vote

Shell’s business gamble, supported by oil prices at near record highs, is on the brink of paying off Photo: Newscast By Jillian Ambrose: 21 Jan 2016 Key investment funds have voiced growing support for the planned £47bn merger of energy giants Shell and BG Group ahead of crucial shareholder votes next week. Shell’s fifth biggest investor, Norges […]

Fund houses poised to greenlight Shell/ BG takeover

A raft of fund houses have revealed their hand and come out in favour of the deal, defying critics who argue that the fall in the oil price has made it unworkable for Shell. Kames is understood to be backing the deal with its Shell and BG shares and is understood to be encouraging all […]

Shell reveals that profits have nearly halved but receives major backing for its deal with BG Group

By LAURA CHESTERS FOR THE DAILY MAIL: 21 JAN 2016 Royal Dutch Shell revealed quarterly profits had nearly halved yesterday but received major backing for its deal with BG Group. Shell said its fourth-quarter profit will be down by around 40 per cent to between £1.1bn and £1.3bn and its full- year earnings could drop […]

Shell’s profits dive ahead of BG deal shareholder vote

20 JAN 2016 Royal Dutch Shell has reported a sharp drop in profits just a week before shareholders vote on its planned takeover of smaller rival BG Group. For the fourth quarter it expects profits of $1.6bn to $1.9bn, less than half the $4.2bn it made a year ago. It expects full year profits of […]

Royal Dutch Shell / BG: A Marriage That Will Need Work

By HELEN THOMAS: Jan 20, 2016 As a reminder of why Royal Dutch Shell wants to buy BG Group , an ugly set of figures certainly does the job. Amid criticism of the now-$47 billion deal ahead of shareholders votes later this month, both companies released early full-year results Wednesday. Shell’s report card was enough to […]

Shell Expects Sharply Lower Profit Amid Oil Slump

By STANLEY REEDJAN. 20, 2016 LONDON — Royal Dutch Shell said on Wednesday that it expected profit for the fourth quarter of last year to be sharply lower than in the same period in 2014. The company issued the preliminary estimates before a much-anticipated vote by Shell shareholders next Wednesday on the proposed acquisition of […]

Oil price plunge leads Shell to warn that 2015 earnings will more than halve, but it sees BG Group takeover as a ‘new chapter’

Shell expects full year underlying earnings to drop to between $10.4bn (£7.3bn) and $10.7bn (£7.6bn), a sharp fall on 20’14’s $22.56bn (£15.9bn)  Every $10 change in crude price knocks around $3bln (£2.1bn) off earnings BG says its earnings dropped in 2015 as expected, but added that the results are in line or ahead of forecasts  […]

Shell to cut 10,000 jobs in drive to slash costs

By Sara Sjolin: Published: Jan 20, 2016 3:42 a.m. ET Royal Dutch Shell PLC RDSB, -4.82% RDS.B, -1.28% plans to cut 10,000 jobs in an effort to further reduce costs amid a severe slump in oil prices. The Anglo-Dutch energy company said in its trading update on Wednesday it had slashed operating costs by $4 billion […]

Shell Fourth-Quarter Profit Plunges as Oil’s Slump Deepens

Rakteem Katakey: Bloomberg.com: January 20, 2016 Royal Dutch Shell Plc said fourth-quarter profit plunged as the rout in crude prices deepened.  The company sees profit adjusted for one-time items and inventory changes of $1.6 billion to $1.9 billion, The Hague-based Shell said Wednesday in a preliminary earnings statement. That compares with the $1.8 billion average estimate of nine […]

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