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U.S. LNG exports reach a tipping point

Steve Hill, executive vice president of Shell Energy, discusses Shell’s growth in the liquefied natural gas industry aboard Dynagas’ Lena River LNG carrier as its docked at Cheniere Energy’s Sabine Pass LNG

SABINE PASS, La. – In 2011, Cheniere Energy was a little-known company with big ambitions when it signed an $8 billion contract that would transform the United States into an exporter of liquefied natural gas after decades of relying on foreign suppliers. Five years later, just days before the Houston company shipped its first LNG cargo, another big deal gave a jolt to nascent U.S. industry. Royal Dutch Shell bought Cheniere’s customer, BG Gas for $50 billion, a move that made Shell the world’s largest international LNG producer and marketerand allied it with this nation’s biggest LNG exporter. Shell remains Cheniere’s best customer, buying almost half the production of Cheniere’s massive Sabine Pass LNG terminal. FULL ARTICLE read more

Integrated Gas To Drive Royal Dutch Shell’s Value Going Forward

Great Speculations: Trefis Team: DEC 7, 2017 @ 04:22 PM

With the growing inclination towards the use of cleaner and environment-friendly sources of energy, natural gas has emerged as a preferred choice of fuel worldwide. However, due to the challenges related to the transportation and storage of gas, the demand for liquefied natural gas (LNG) has grown faster than the demand for natural gas over the last decade. As a result, natural gas producers, particularly in the U.S., have been expanding their LNG operations to capitalize on the booming demand for the commodity. Royal Dutch Shell (NYSE:RDS.A) is one such integrated energy company that has been increasing its presence in the gas markets. In this note, we discuss how Shell’s integrated gas business will drive value for the company over in the long term. FULL ARTICLE read more

Shell signals an end to the oil downturn with return of all-cash payouts

Jillian Ambrose: 

Royal Dutch Shell has signalled the end of the three-year oil market downturn by restarting its all-cash shareholder payouts as its cash flow begins to boom. The oil major began paying out dividends in the form of shares in 2015, in the wake of the oil price crash and its $50bn takeover of BG Group. But chief executive Ben van Beurden said the Anglo-Dutch group was now confident that it could call an end its scrip dividend as its cost-cutting and divestment programme pays off. The leaner business will also enable Shell to double down on its investment in ‘new energies’ including low-carbon fuels and renewable electricity. FULL ARTICLE read more

Shell Atones for Its Past Sins

: Nov 28, 2017

It’s payback time for investors in Royal Dutch Shell Plc. Shareholders in the Anglo-Dutch oil company have had to endure receiving their dividends partly in stock throughout the industry price slump. This mild austerity is now ending. Shell is signalling that when it comes to spending its cash, shareholders will get first dibs. The move to a full cash dividend, announced on Tuesday, is only just affordable. Investors should feel lucky the dividend wasn’t cut. In the 12 months to Sept. 30, organic free cash flow of $17 billion wouldn’t have covered the full dividend bill plus interest on Shell’s $68 billion net debt. FULL ARTICLE read more

Shell signals return to pure cash dividend, focus on renewables

FILE PHOTO: Ben van Beurden, chief executive officer of Royal Dutch Shell, speaks during a news conference in Rio de Janeiro, Brazil, February 15, 2016. REUTERS/Sergio Moraes /File Photo

Ron Bousso: NOVEMBER 18, 2017

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will return to paying pure cash dividends and step up its investment in cleaner energy as it turns a corner after more than two years of cost cuts and disposals prompted by weak oil prices. Shell Chief Executive Officer Ben van Beurden sought to strike a balance between reassuring investors it can increase returns in its core fossil fuel business during an “era of volatility” in oil prices while preparing to step up investments in renewables. FULL ARTICLE read more

Shell Updates Company Strategy and Financial Outlook

NEWS PROVIDED BY: Royal Dutch Shell plc

THE HAGUE, Netherlands, November 28, 2017/PRNewswire/ —

  • Scrip dividend programme to be cancelled with effect from the fourth quarter 2017 dividend
  • Annual organic free cash flow outlook increased to $25 to $30 billionby 2020, at $60 per barrel (real terms 2016)
  • Company sets ambition to reduce the net carbon footprint of its energy products in step with societys drive to align with the Paris Agreement goals

Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B) Chief Executive Officer, Ben van Beurden, today updated investors on the company’s strategy, setting out plans to grow returns and free cash flow, and outlining its ambition to reduce the net carbon footprint of its energy products.

“Our next steps as we re-shape Shell into a world-class investment aim to ensure that our company can continue to thrive, not just in the short and medium term but for many decades to come,” said van Beurden. “These steps build on the foundations of Shell’s strong operational and financial performance, and my confidence in our strategy and our ability to deliver on the promises we make.” read more

Shell investors reap dividends from oil revival

Royal Dutch Shell Malikai superlift at a deep-water project in Malaysia. The global business is in a healthier financial state than it has been recently and intends to resume cash dividends

Royal Dutch Shell is expected to signal its return to paying its entire dividend in cash this week, in the latest evidence of renewed confidence in the oil industry. The Anglo-Dutch group, the biggest listed oil company in Europe, makes a proportion of its payments to investors in the form of new shares rather than cash. READ MORE read more

Shell prepares to reward investors by restoring bigger cash payouts

Royal Dutch Shell introduced its scrip dividend programme in 2015 (Source: Getty)

Oliver Gill: Sunday 26 November 2017 6:14pm

Oil behemoth Royal Dutch Shell has been tipped to dish out more cash to investors as it scraps a programme of paying dividends in the form of shares. Analysts from UBS believe it is a case of “when not if” Shell restores a full cash dividend.

Shell chief executive Ben van Beurden is expected to signal the changes at a London management day on Tuesday.

The oil giant put a scrip dividend programme – where part of the firm’s dividend is paid by issuing new shares – in place in 2015 to reduce demands on cash as debt spiralled. Shell’s cash reserves were put under pressure by a combination of soft oil prices and a £47bn deal to buy gas producer BG. read more

Why Energy Giants Will Continue to Dominate LNG Market

Trade in the $90 billion market for the superchilled gas is poised to double by 2040: Photographer: Tomohiro Ohsumi/Bloomberg

Total SA’s billion-dollar deal to buy liquefied natural gas assets from Engie SA shows how much size matters in the industry. 

After Royal Dutch Shell Plc’s takeover of BG Group Plc last year, industry consultant Wood Mackenzie Ltd. says the latest accord is evidence that the biggest energy companies with access to large volumes of diverse supplies will continue to dominate, even as commodity traders from Glencore Plc to Trafigura Group Pte are expanding.  read more

Shell to sell part of its Woodside Petroleum stake for $1.7 billion

Reuters Staff: NOVEMBER 13, 2017

LONDON/SYDNEY (Reuters) – Royal Dutch Shell is selling part of its stake in Australia’s largest independent oil and gas company, Woodside Petroleum Ltd, to equity investors for about $1.7 billion.

Shell, which has been slowly divesting its Woodside holding, said on Monday its Shell Energy Holdings Australia Limited (SEHAL) unit had struck a deal with two investment banks over the sale of 71.6 million Woodside shares for A$31.10 ($23.79) apiece.

The oil major said that represented 64 percent of its interest in Woodside and 8.5 percent of the issued capital in Woodside. FULL ARTICLE read more

Shell Swallows BG Group Whole Hog, Rolls Up Cash Flow

Ray Merola: Nov. 6, 2017

Summary

  • Shell is enjoying a remarkably successful corporate resurgence.
  • Legacy BG Group opex and capex has been absorbed entirely without a loss of combined hydrocarbon volumes.
  • Cash is king.
  • Debt is trending down.  The dividend is well-covered.  Returns are solid, and improving.
  • I remain constructive on RDS stock.

FULL ARTICLE

Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.
  • read more

    Oil rebound drives Shell to booming profits

    Jillian Ambrose: 

    Royal Dutch Shell became the latest major oil company to deliver better than expected earnings in recent months as the market recovery begins to gain traction.

    The Anglo-Dutch oil giant reported $4.1bn (£3bn) in earnings for the last quarter on a current cost of supply basis, its standard measure of profitability. The sum comes in well above analyst forecasts that the group would make $3.6bn for the latest quarter.

    Shell’s quarterly earnings are almost 50pc higher than in the same quarter last year, when they reached $2.8bn. read more

    Shell beats profit forecasts, targets lower 2017 spending

    Ron Bousso

    LONDON (Reuters) – Royal Dutch Shell (RDSa.L) reported an 18 percent rise in third-quarter profit on Tuesday, lowering next year’s capital spending to the bottom of the expected range as it grapples with persistently low oil prices and weak refining margins. The Anglo-Dutch oil major, whose acquisition of BG Group transformed it into the world’s top liquefied natural gas producer, has been under pressure from shareholders to cut annual spending to ensure it can maintain its dividend given the slow recovery in the oil prices LCOc1. “Lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain,” Chief Executive Officer Ben van Beurden said in a statement. FULL ARTICLE read more

    Shell defends divestment efforts, but cancels sale in Thailand

    Subsidiaries of Shell and the Kuwait Foreign Petroleum Exploration Co. said they mutually agreed to cancel the multilmillion dollar sale of shares in Shell Integrated Gas Thailand Pte. Ltd., known also as SIGT, and Thai Energy Co Limited, or TEC. Shell said the latter two would continue to support Thai partners in development of the Bongkot field. “SIGT also intends to participate in the forthcoming licensing round for the extension of the Bongkot concession,” Shell’s announcement read. FULL ARTICLE read more

    Shell takes cautious approach to green energy transition

    by Andrew Ward, Energy Editor: 1 Oct 2017

    Mr van Beurden, chief executive of Shell, allows himself only the briefest self-congratulation. “All the milestones, we are either ahead or on track,” he tells the Financial Times, referring to targets set at the time of the takeover. “But you are never done in this industry because everything is always in continuous decline.” The Dutchman is talking about the relentless pressure to find new resources… FULL ARTICLE

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