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Shell Profits Triple on Stronger Refining, Oil Prices

Shell CEO Ben van Beurden

LONDON — Royal Dutch Shell more than tripled its profits in the second quarter to beat forecasts boosted by strong refining operations and a rise in oil prices. The Anglo-Dutch oil and gas company also reported a huge recovery in cash flow to $12.2 billion and a drop in debt as its cost reduction efforts in recent years paid off. It has sold some $25 billion of assets since acquiring BG Group last year. The strong results came despite a dip in oil and gas production versus the previous quarter as a result of reduced output from a facility in Qatar. “The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control,” Chief Executive Ben van Beurden said. READ MORE read more

Royal Dutch Shell’s earnings more than triple in 2Q

By Associated Press July 27 at 2:53 AM

LONDON — Royal Dutch Shell says second-quarter earnings more than tripled as it benefited from a cost-cutting drive and recovering oil prices.The Anglo-Dutch energy giant said Thursday that profit adjusted for changes in the value of inventories and excluding one-time items rose to $3.60 billion from $1.05 billion in the same period last year. Net income rose 31 percent to $1.55 billion.CEO Ben van Beurden says the earnings reflect Shell’s restructuring to cope with lower oil prices and the purchase of natural gas producer BG Group. Shell’s oil price averaged $45.62 a barrel for the quarter, up 16 percent from a year earlier. Prices were above $100 a barrel as recently as 2014. Van Beurden says the “external price environment and energy sector developments mean we will remain very disciplined.” read more

Shell nears finishing line with $30billion divestment programme

Written by

The supermajor announced this morning that it had shed assets worth $25billion as part of the reshaping of its portfolio. This included the landmark North Sea deal with Chrysaor earlier this year, worth around $3.8billion. It also comes following the $68.2billion merger with BG Group. The supermajor also recently agreed to sell its stake in Irish gas project Corrib in a deal worth up to 1.23 billion US dollars (£956 million). The firm said adjusted earnings rose from 1.05 billion US dollars (£800 million) to 3.6 billion US dollars (£2.7 billion), an increase of 245%. read more

Shell shifts focus to chemicals and refining

Anglo-Dutch energy giant Royal Dutch/Shell is shifting its focus toward downstream operations like refining and chemicals and away from traditional upstream activities like exploring for oil and gas, the Financieele Dagblad said on Wednesday.

This shift is likely to become even clearer when the company publishes its second quarter figures on Thursday, the paper said.

Shell’s investment in exploration slumped to $157m in the first quarter of 2017 from an annual quarterly average of between $500m to $600m in recent years, the paper points out.  This is partly due to the group’s recent acquisition of the BG Group which has large deep-sea reserves off the coast of Brazil. read more

Shell profits set to treble as prices rise and costs cut

Service level in Shell’s HQ restaurant is rapidly declining

Cutting costs to pay for BvB’s purchase of BG Group? From information supplied, appears to a genuine lunch time photo taken at Shell’s HQ restaurant in The Hague.

Shell News Update 14 June 2017

Shell to cash in $10bn from divestments in second half: EnergyVoice.com: 14 June 2017

The Anglo-Dutch energy giant’s net debt currently stands about $72billion and Shell wants to shave off about $20billion to reduce gearing − the level of a company’s debt related to its equity capital − to around 20%. Shell is in the midst of a push to sell $30billion worth of assets between 2016 and 2018 to rebalance its books following its takeover of BG Group.

UK Government pays Shell £112m tax rebate despite oil giant making billions in profits: Independent: 14June 2017

Most of the payment from HM Revenue and Customs is a contribution towards Shell’s costs for decommissioning its North Sea oil and gas fields. It follows a similar payment of £85m in 2016. read more

MORE JOB CUTS AT SHELL

Oil giant Shell to cut 90 jobs at Aberdeen headquarters: STV: 1 JUNE 2017

Ninety jobs at oil giant Shell to go in Aberdeen: BBC NEWS: 1 JUNE 2017

Shell’s 1,700-strong workforce in Aberdeen were told about the redundancies at meetings on Thursday morning.

Royal Dutch Shell cuts more jobs in Aberdeen: THE TELEGRAPH: 1 JUNE 2017

It has also called for voluntary redundancies from the former BG Group head office at Thames Valley Park in Reading.

Shell News Headlines 23 May 2017

Shell to sell C$4.1 billion stake in Canadian Natural -sources: REUTERS/DAILY MAIL: 23 May 2017

Royal Dutch Shell Plc has decided to offload a roughly C$4.1 billion ($3 billion) stake in Canadian Natural Resources Ltd (CNRL) that it acquired as part of a deal to retreat from Canada’s oil sands earlier this year, people familiar with the situation told Reuters.

Shell defeats activist uprising as it faces down rising climate concerns: THE TELEGRAPH: 23 MAY 2017

Royal Dutch Shell has convincingly defeated a climate activist uprising after facing down one of its most bitter stand-offs with shareholders over its climate goals. Around 94pc of shareholders voted down a special resolution calling for the oil giant to set and publish annual targets to reduce carbon emissions at its AGM in the Hague on Tuesday. The board also survived a vote on executive pay which was backed by 93pc of shareholders. read more

Shell in the firing line over boss pay

Jillian Ambrose

Inquest on BG Group/Shell merger

Even the remuneration committee’s ethics were questionable as they acted with impunity by awarding obscene annual bonuses to executives, despite multiple fatalities at operational locations.

By John Donovan

Further comments have been posted overnight on our Shell Blog in an ongoing discussion about Shell’s controversial takeover of the BG Group. To my certain knowledge Shell had its eyes set on British Gas back to at least the mid 1990’s. An important meeting I had in July 1995 with the then Chairman and Chief Executive of Shell UK Limited Dr Chris Fay was interrupted by matters relating to British Gas. A takeover bid was being actively considered. It was not until Ben van Beurden became Shell’s CEO that anyone at Shell had the guts to take a gamble. And it is a gamble. Oil prices are on the brink of a possible and even likely collapse. BTW, I very much agree with the comments made by “regular browser” about Shell’s claimed business principles. read more

Shell news update 4 May 2017

Shell Pumps a Torrent of Cash as Takeover, Cost Cuts Pay Off: Bloomberg.com: 4 May 2017

The Anglo-Dutch company’s performance helps validate Chief Executive Officer Ben Van Beurden’s $54 billion purchase of BG Group Plc — for which some shareholders complained he overpaid — and the deep spending cuts and asset sales he undertook to protect the balance sheet.

Nigeria: Despite Malabu Scandal, Shell, Eni Will Continue to Operate OPL 245 – Govt: Premium Times: 3 May 2017

The Federal Government says the Zabazaba deepwater project in Oil Prospecting Lease (OPL) 245 will continue in spite of controversies surrounding the oil block.

How Earthquakes Might Be Crimes in Netherlands: Bloomberg.com: 3 May 2017

Can a natural disaster be a crime? That’s the question in The Netherlands, where an investigation has been ordered into whether Royal Dutch Shell Plc and Exxon Mobil Corp. are criminally responsible for earthquakes triggered by production at Europe’s largest natural gas field, Groningen. Some of the earthquakes have been strong enough to damage homes… read more

Reflecting on the demise of the BG Group

Printed below are recent intriguing comments posted on our Shell Blog about events and individuals at BG Group after it was infiltrated by Shell years prior to the $70 billion acquisition. The largest oil industry merger for nearly 20 years.

POSTED COMMENTS

BogusGroup: 2017/05/03 at 3:23 pm

BG Group was founded on very little credible geoscience. Frank Chapman’s precious ‘treasures’. Technically inept staff promoted to heady heights as a reward for longevity, loyalty and willingness to play corrupt corporate games. Probity was a word never heard in the corridors of the pavilions of Thames Valley Park. As long as there was production and accompanying revenue stream it didn’t matter if they understood where it came from or not. Life was a continuous garden party on a ‘Knight to be remembered’! read more

Steve Phimister, mastermind behind Shell’s takeover of BG Group?

By John Donovan

Yesterday, the sub-headline in a PR article about Steve Phimister published by EnergyVoice.com proclaimed: “The mastermind behind Royal Dutch Shell’s £36billion takeover of BG Group has been appointed to the board of industry trade association Oil and Gas UK”.

I wondered if the very impressive claim, perhaps made in the heat of excitement about his latest appointment, might upset his boss, Shell CEO Ben van Beurden, who might believe that he masterminded the deal, not Phimister. Lo and behold the claim vanished overnight from the online article without explanation. read more

Shell News Stories Friday 24 March 2017

Shell sells onshore Gabon oil assets to Carlyle for $587 mln: Reuters/Daily Mail

EXTRACT: For Shell, the deal marks a further step in a $30 billion asset disposal programme to help cut debt after its $54 billion acquisition of BG Group last year. The Anglo-Dutch oil company has sold assets for more than $15 billion since 2016.

WSJ: Shell report cites “astonishingly high” pollution from Nigerian oil spills: Seeking Alpha

EXTRACT: Royal Dutch Shell (RDS.A, RDS.B) oil spills that have not been cleaned up for more than eight years have contributed to “astonishingly high” levels of pollution in a Nigerian community, WSJ reports, citing a consultant who helped produce a confidential damage assessment for the company and its partners. The former director of the cleanup project says Shell has denied him permission to publish the study’s results, which dictated a need for health screenings in the Bodo community. read more

Ben van Beurden admits earnings figures do not “look good” for investors

Royal Dutch Shell Plc has today announced its disappointing fourth-quarter figures. The Company turned in one of its worst performances in more than a decade.”

The Telegraph says that the company has dashed investor hopes for a resurgence in profits. It reports that “for the year as a whole Shell deepened its losses in its exploration and production business from $2.2bn to $2.7bn”.

CNBC says that Ben van Beurden, CEO of Royal Dutch Shell Plc has conceded that the earnings figures do not “look good” for investors. Their article headline says: Shell posts earnings of $3.5 billion in 2016; an 8% slide from $3.8 billion in 2015 read more

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