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Posts under ‘Oil Company Profits’

Goldman eyes $20 oil as glut overwhelms storage sites

By Ambrose Evans-Pritchard: 20 Nov 2015 The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned. Goldman Sachs told clients that the increasing glut of oil on the global market […]

US oil settles down $1.01, or 2.42%, at $40.74 a barrel

Oil fell over 2 percent on Friday, extending the week’s loss to the largest in eight months, pressured by swelling storage of crude on both land and sea. U.S. crude traded slightly above $40 a barrel while benchmark Brent was less than $2 from setting new 6½-year lows. The slump widened to oil products with […]

Saudi Arabia will not stop pumping to boost oil prices

November 8, 2015 Saudi Arabia is determined to stick to its policy of pumping enough oil to protect its global market share, despite the financial pain inflicted on the kingdom’s economy. FULL FT ARTICLE

Oil giants ‘face cascade of claims’

Robin Pagnamenta Energy Editor: November 7, 2015 An investigation by New York’s attorney-general into ExxonMobil’s record on climate science could trigger a “cascade” of similar claims against other oil companies, including Britain’s BP and Royal Dutch Shell, legal experts have warned. Prosecutors might seek to investigate other companies that helped to fund organisations that queried climate […]

Shell carves more savings from BG Group deal, expects further job cuts

Posted on November 3, 2015 | By Collin Eaton HOUSTON — Shell has found another $1 billion in costs it could shake free after it buys BG Group, company officials said Tuesday, partly in response to critics of the huge acquisition Shell announced when crude was more expensive in the spring. The cuts would mean […]

Big Oil Gears Up For $60 Break-even Price As Profits Sink

Gaurav Sharma: OCT 31, 2015 The latest quarterly results season is receding into the accounting archives, with BP, Royal Dutch Shell, Chevron and the keenly anticipated numbers of Exxon Mobil now with us. That lower oil prices continue to dent profits at the world’s biggest oil companies is no longer news. Figures on their often unloved […]

LNG moves from blessing to curse for BG/Shell

By Andy Critchlow October 30, 2015 The author is a Reuters Breakingviews columnist. The opinions expressed are his own. Liquefied natural gas is taking the shine off Shell’s $70 billion takeover of BG Group. When the Anglo-Dutch major launched its deal in April, LNG was one of the main ways it justified the deal to […]

Shell Leads $19 Billion of Gas, Oil Writedowns in Just One Week

Asjylyn Loder: 29 Oct 2015: Shell leads writedowns with $8.2 billion in impairments Predictions of future cash flow have fallen along with prices More than $19 billion in oil and gas writedowns have been reported in a single week as producers acknowledge what investors already knew. Royal Dutch Shell Plc leads the pack in recognizing […]

Shell boss confident of ‘good’ ruling from ACCC on BG takeover

Angela Macdonald-Smith: 30 October 2015 Royal Dutch Shell’s global chief executive Ben van Beurden says there is “massive support” from Australian federal and state governments for the oil giant’s $US70 billion ($98.6 billion) takeover of BG Group and is confident the national competition regulator will wave the deal through. Mr van Beurden said even though the decision from the Australian Competition and […]

Shell’s Loss: Oil Prices Aren’t the Only Problem

There is blood in the water at Royal Dutch Shell By HELEN THOMAS: Oct. 29, 2015  There is blood in the water at Royal Dutch Shell. The wound will take some time to heal. The U.K. oil and gas company Thursday posted a huge third-quarter loss, dragged down by impairments of $8.2 billion in its upstream business. […]

Even as it walks away from Arctic drilling, Shell keeps door open for future work

Posted on October 29, 2015 | By Jennifer A. Dlouhy WASHINGTON — Shell is walking away from oil exploration in Arctic waters north of Alaska, but it isn’t ready to close the door completely. Disappointing results from a critical test well at the company’s Burger prospect in the Chukchi Sea, combined with the high costs […]

Royal Dutch Shell’s share price tumbles as group posts dramatic loss as falling oil prices take toll

by Catherine Neilan: 29 Oct 2015 Royal Dutch Shell’s share price tumbled this morning after it revealed a third quarter loss of $7.4bn (£4.8bn) as the company gets to grips with the falling oil price.  The figures The Anglo-Dutch oil giant posted its dramatic loss on the back of nearly $8bn-worth of exceptional items. Adjusted net income […]

Low Oil Prices Take a Toll on Royal Dutch Shell in Quarter

By STANLEY REED: OCT. 29, 2015 LONDON — Lower petroleum prices took a big toll on Royal Dutch Shell in the third quarter. The company reported a loss of $7.4 billion, compared with a profit of $4.5 billion in the quarter a year earlier. Adjusted for inventory changes and one-time items — a more closely watched […]

Shell profits slump after huge write-offs

Business News | Thu Oct 29, 2015 7:18am GMT Royal Dutch Shell (RDSa.L) on Thursday reported a sharp drop in third-quarter profits on the back of low oil prices and a hefty $8.2 billion (5.4 billion pounds) charge which included write-offs in Alaska and Canada. Shell’s current cost of supplies (CCS) earnings excluding identified items, […]

Shell Makes Biggest Net Loss in at Least a Decade on Price Slump

Rakteem Katakey: 29 October 2015 Company reports net loss after taking $7.9 billion charge Third-quarter adjusted profit drops 70% to $1.8 billion Royal Dutch Shell Plc reported its biggest net loss in at least a decade as it wrote down the value of assets and lowered its oil-price expectations. The company, which is buying BG […]

Shell halts construction on new Alberta oil sands project

CALGARY, ALBERTA: Tue Oct 27, 2015 Royal Dutch Shell Plc will not continue construction of its 80,000 barrel per day Carmon Creek thermal oil sands project in northern Alberta because of the lack of infrastructure to move Canadian crude to market, the company said on Tuesday. Shell said the decision to halt the project was […]

Profit Down at BP, Which Predicts Era of Low Oil Prices

By STANLEY REED: OCT. 27, 2015 LONDON — The British oil giant BP said on Tuesday that its profit was down sharply in the third quarter as depressed oil prices took a heavy toll. The company, saying it expects prices to stay low for years, indicated that it would continue to cut costs and limit its […]

Shell cancels big Canadian oil sands project

Posted on October 27, 2015 | By Collin Eaton HOUSTON – Royal Dutch Shell says it will stop building a large Canadian oil sands project after low crude prices pushed it out of the company’s shortlist of profitable projects. It’s the second large project Shell has canceled since August, when it ditched a $7 billion […]

Shell Takes $2 Billion Charge to Quit Oil-Sands Project

David Marino: 27 October 2015 Company stops work at Carmon Creek facility in Alberta Halted oil-sands work follows Shell’s Arctic drilling exit Royal Dutch Shell Plc made its second major strategic change in two months, announcing it will take a $2 billion charge to exit an oil-sands project in Alberta. Shell is stopping construction on […]

Shell upstream boss says UK sector still in ‘dark ages’ on collaboration

Written by Phil Allan – 27/10/2015 11:28 am The boss of Shell’s UK upstream business said the oil and gas industry was still in the “dark ages” when it came to collaboration. Paul Goodfellow said companies working in the North Sea need to learn from other industries on how to work together. The Shell boss […]

Shell share price: Company’s problems extend beyond oil prices, analyst says

Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets…the firm is far more likely to remain a laggard than become a leader among the oil majors for the rest of this decade… by Veselin Valchev: Tuesday, 27 Oct 2015 Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even […]

Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015 Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year. Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying. […]

Oil profits set to plummet by billions: BP and Shell hit as prices plunge and exploration venture collapses

Photo Credit: Dark days: The price of a barrel of Brent crude has plunged from more than $100 a barrel in the summer of last year to $48 a barrel today By JON REES, FINANCIAL MAIL ON SUNDAY: 24 October 2015 BP and Shell will this week report billions of pounds wiped off their profits as […]

BP and Shell slip up on Crude bottom

ROYAL Dutch Shell and BP are set to blame the weak oil price for dramatic falls in third-quarter pre-tax profits and revenues, analysts say. By GEOFF HO: Sun, Oct 25, 2015 The price of crude oil has nearly halved over the past 12 months because of a Saudi Arabia-led effort by the Opec cartel to crush […]

Shell Will Struggle to Overcome Oil Price Crash, say Analysts

Stephen Simko, CFA: 26 October 2015 Even when oil prices were $100 a barrel, Shell’s (RDSB) portfolio was strewn with problems. Huge bets on shale destroyed huge amounts of capital, and the company’s upstream resource base has few growth options with strong economics, the low-cost Brazilian oil it is acquiring from BG (BG.) is the […]

Cash Crunch Clouds Future for Oil Firms

By SARAH KENT and JUSTIN SCHECK: Oct. 25, 2015  At Shell, Chief Executive Ben van Beurden has said he was “pulling out all the stops” to protect the dividend. At the same time, he has flagged the potential for even deeper cuts at his company, based in The Hague. “I think in the end, the success […]

BP and Shell profits poised to fall by half

Terry Macalister Energy editor: 25 October 2015 EXTRACTS BP and Shell are set to unveil a drop of more than half in their third-quarter profits this week, raising new questions about their ability to retain dividends and avoid further job losses. Shell has recently carried out its own cost reductions by trimming jobs in Aberdeen and […]

Big Oil Is a Buy as Cutbacks Pave Way for Recovery

by Rakteem Katakey and Angelina Rascouet: Oct 20, 2015 Shell has highest percentage of buy ratings in three years Third-quarter earnings seen marking low point before rebound Energy companies are finally starting to come back into favor. After enduring the longest oil-price collapse in more than a decade, crashing profits and an investor exodus, Europe’s biggest producers are […]

Why We Believe Shell’s Stock Is Worth $62

Trefis Team, CONTRIBUTOR: Oct 16, 2015 Royal Dutch Shell Plc. is one of the world’s leading oil & gas companies with operations all across the globe. The company has been hit hard by the current downtrend of low crude oil prices and its average price realizations in both upstream and downstream segments have suffered as […]

Can Royal Dutch Shell Sustain Its High Dividends?

Trefis Team, CONTRIBUTOR: OCT 7, 2015 Royal Dutch Shell‘s dividend yield has reached a high of over 8%, given that its stock price fell by almost 18% in the last three months. The company has committed to paying its current dividend for the current financial year despite the pressure on its net income. However, it […]

Shell pledges to keep dividend despite slump in oil prices

If the oil price stays low, Shell’s van Beurden may have to eat his words Photo: AFP By Andrew Critchlow, Commodities editor: 06 Oct 2015 Royal Dutch Shell has reassured investors that it will maintain its dividends regardless of a prolonged slump in oil prices below $50 per barrel. Chief executive Ben van Beurden, speaking at the […]

Shell CEO Doing All to Safeguard Dividends Amid Low Oil Prices

by  Bloomberg: Rakteem Katakey: Tuesday, October 06, 2015 (Bloomberg) — Royal Dutch Shell Plc is “pulling out all the stops to safeguard” its dividend in a world where oil prices remain “lower for longer,” Chief Executive Officer Ben Van Beurden said.  Europe’s biggest oil company is also protecting its plan to buy back shares, Van Beurden said […]

Myths about Shell’s Arctic Alaska pullout persist

Yereth Rosen: Alaska Dispatch News: October 3, 2015 When Royal Dutch Shell announced that it had lost its big-money bet in the Chukchi Sea and would end its entire program in the offshore U.S. Arctic, the hyperbole and finger-pointing began in earnest. Rep. Don Young accused President Obama and Interior Secretary Sally Jewell of deliberately sabotaging Alaska’s economy. “I’m […]

Shell may post loss after taking £2.7bn Arctic exploration hit

Shell chief executive Ben van Beurden told The Mail on Sunday just two weeks ago that he was committed to the Arctic By Jon Rees For The Mail On Sunday: 4 Oct 2015 Shell is set to reveal that quitting the Arctic cost it up to $4.1billion (£2.7billion) in its third-quarter results when it unveils […]

Royal Dutch Shell’s Arctic Bucket Of Ice Has Melted, Yield Is Now North Of 8%

Sep. 29, 2015 Summary * The Burger J well test results were a dud, no major reserves found. * Shell puts Arctic drilling on hold indefinitely, which further reduces future capex. * Dividend yield tops the 8% mark. Royal Dutch Shell (RDS.A / RDS.B) was always upbeat about the prospects of drilling in the Arctic, […]

Why we MUST drill for oil in the Arctic: Shell boss’s message to climate change campaigners and governments

By JON REES, FINANCIAL MAIL ON SUNDAY: 20 Sept 2015 Some green campaigners seem to believe Shell boss Ben van Beurden would be happy dunking polar bears in thick, black crude oil if it helped make the planet even hotter. But van Beurden, the 57-year-old engineer who has run Royal Dutch Shell for nearly two […]

How Royal Dutch Shell Is Addressing Its Dividend Concerns

Christopher F. Davis: Sept 3, 2015 Summary This article is a follow-up to my prior article addressing the company’s dividend concerns. History won’t always repeat itself, so I felt I would talk about what the company is doing in detail and expand on my thoughts. I am betting history continues. As you know, Royal Dutch […]

Addressing The Royal Dutch Shell Dividend Concerns

Christopher F. Davis: Aug. 27, 2015 Summary Shares of oil majors have been crushed and Shell is no exception. Concerns over the dividend are being raised. I discuss the possibility of a dividend cut and what I see as likely happening. Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has been crushed in the last three months, and of […]

Shell Leaves ALEC, Is Still Terrible

Shell remains one of the dirtiest, corrupt and dangerous companies ever known, and no amount of green-washing can hide that simple fact. Derrick Crowe: 27 August, 2015 Earlier this month, Royal Dutch Shell announced it would allow its membership in the American Legislative Exchange Council, or ALEC, to expire. ALEC is a major force behind […]

Royal Dutch Shell Is Now A 7.54% Dividend Yield Monster

Aug. 24, 2015 6:45 PM ET Summary Stock market downturn takes Shell’s dividend yield to an astonishing 7.54%. The dividend looks reasonably safe. High initial yield but little growth expected in coming years. Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) doesn’t need an introduction. This Anglo-Dutch multinational is one of the largest, integrated oil & gas majors […]

Opec powerless to halt oil price slide, warns former group president

Opec veteran says that current oil prices slump has exceeded the worst expectations of the group By Andrew Critchlow, Commodities editor: 24 Aug 2015 Opec is powerless to arrest the slide in oil prices unless producers outside the group such as Russia match any cuts in output, according to a former president of the group. ‘Black […]

Iran to Raise Oil Output ‘at Any Cost’ to Defend Market Share

U.S. benchmark West Texas Intermediate crude fell to less than $40 a barrel for the first time in more than six years in New York trading on Friday. Anthony Dipaola and Hashem Kalantari: BLOOMBERG.COM: 23 AUGUST 2015 Iran plans to raise oil production “at any cost” to defend the country’s market share and joins calls for […]

Oil slump highlights pressure on dividend payouts

Extracts from an article by Garry White: 22 Aug 2015 Some in the City are concerned that distributions to shareholders at some major dividend payers are too high. This is particularly true for the oil sector. • Opec is being eaten alive and needs to meet to heal its wounds • Low oil prices bite as […]

Oil suffers longest weekly losing streak since 1986

Published: Aug 21, 2015 3:22 p.m. ET “It looks like the market will remain in a supply/demand surplus at least through 2016.” SOURCE

Oil Companies Sit on Hands at Auction for Leases

By CLIFFORD KRAUSS: AUG. 20, 2015 PAGE B1 IN NEW YORK EDITION HOUSTON — With oil prices collapsing and companies in retrenchment, a federal auction in the Gulf of Mexico on Wednesday attracted the lowest interest from producers since 1986. It was the clearest sign yet that the fortunes of oil companies are skidding so fast […]

BP plc and Royal Dutch Shell Plc Will Have To Survive Without $100 Oil

By Harvey Jones – Tuesday, 11 August, 2015 Low oil prices have sunk share prices at BP (LSE: BP) and Royal Dutch Shell (LSE: RDSB) and there is no sign of immediate respite. There was a flicker of hope as Brent crude climbed to nearly $68 a barrel in May, but it has now slid below $50 again, and […]

To please investors, Big Oil makes deepest cuts in a generation

August 7, 2015 Oil companies are making the largest cost cuts in a generation to reassure investors. They’re risking their own future growth. From Chevron Corp to Royal Dutch Shell, producers are firing thousands of workers and cancelling investments to defend their dividends. Cutbacks across the industry total $US180 billion so far this year, the most […]

Chevron Corporation, Royal Dutch Shell Plc & Other Oil Co.s Have Lost $1.3 Trillion Since Last Year

By: MICHEAL KAUFMAN: Aug 5, 2015 As the global benchmark of crude, Brent currently hovers around $50 per barrel. Meanwhile, the oil and gas industry has lost $1.30 trillion of its value this year, and this eroded value equals the annual gross domestic product (GDP) of Mexico. The combined market capitalization of 157 listed oil and […]

Shell’s Dividend Pledge: Solid Or Empty Promise?

One cannot but admire CEO Ben van Beurden for his courage… August 4, 2015 Summary Royal Dutch Shell is dead serious about protecting future dividend payments. CEO Van Beurden committed himself to paying attractive dividends in the next two years. Although I am impressed by Shell’s massive cost reduction plans and the slash in investments, […]

Oil sinks below $50

Oil dives 5 percent to six-month low under $50 on China worry Markets | Mon Aug 3, 2015 4:21pm EDT Oil prices lurched 5 percent lower on Monday to their lowest since January, taking global benchmark Brent below $50 a barrel as weak factory activity in China deepened a commodity-wide rout. Growing concerns over excess […]