Royal Dutch Shell plc .com Rotating Header Image

Posts under ‘Oil Company Profits’

Oil firms face further cuts as low prices linger

Oil firms face further cuts as low prices linger Commodities | Fri Apr 24, 2015 12:23pm BST * Big oil using spending cuts to increase efficiency * Q1 earnings set to drop by more than 50 pct, tracking oil price * Strong refining margins set to continue By Ron Bousso LONDON, April 24 (Reuters) – […]

How The Majors Are Playing The Oil Price Slump

Article by Nick Cunningham published 22 April 2015 by OilPrice.com How The Majors Are Playing The Oil Price Slump The largest oil and gas companies are employing different strategies to weather the downturn and plan for the future. Each strategy has its risks, and not all may work out. Which companies will emerge stronger after […]

Oil CEO Wages Immune to Price Slump as Shareholders Vote on Pay

Article by Rakteem Katakey published 15 April 2015 by Bloomberg.com Ben van Beurden, Chief Executive Officer of Royal Dutch Shell Plc, pauses as the company announce their fourth-quarter results in London on Jan. 29. Photographer: Chris Ratcliffe/Bloomberg Oil’s plunge has forced the world’s biggest energy producers to lay off workers and stall projects. Their chief executive […]

Dividend doubts creep in after Shell’s £47bn swoop for BG Group

Article by Andrew Neil published 11 April 2015 by proactiveinvestors.co.uk Dividend doubts creep in after Shell’s £47bn swoop for BG Group “We think Shell’s acquisition of BG will likely be viewed as strategically smart and opportune, but should oil prices stay lower for longer, it could put pressure on UK dividends and be detrimental to […]

Why The Oil Price Could Fall Even Further

From an article by Prabhat Sakya published 24 March 2015 by The Motley Fool under the headline: BP plc And Royal Dutch Shell plc: Why The Oil Price Could Fall Even Further The oil price has fallen dramatically since last summer. This has meant difficult times for the oil producers, including companies such as BP and […]

How Shell And BP Will Benefit From Tax Cut in North Sea

By: MICHEAL KAUFMAN: Published: Mar 22, 2015 at 9:56 am EST As UK’s North Sea oil industry suffers from declining production and a prolonged slump in oil price, the government has given oil companies a good reason to rejoice. George Osborne, UK’s Chancellor of the Exchequer, announced earlier this week the government’s decision to reduce tax […]

Oil plunges to a 6-year low. Is $30 a barrel next?

CNNMoney (New York) March 16, 2015: 5:39 PM ET Extremely cheap oil is back, and it may get even cheaper. Crude plunged 4% to as low as $42.85 a barrel on Monday. That’s the lowest price since March 2009 and marks the fifth consecutive day of losses. EXTRACTS A month ago, people were talking about an […]

Price of crude oil resumes its descent

Article by Stanley Reed published New York Times New York Edition 14 March 2015under the headline: Oil Prices Drop as Production Hums Along Despite a Brimming Supply LONDON — Just as the oil market appeared to be stabilizing, the price of crude resumed its descent on Friday. The drop, of about 4 percent, came after […]

Shell boss paid £20m for a year in which oil price slumped and group cut UK jobs

The boss of Shell has received a pay package of almost £20million for a year in which the oil price slumped and the group cut jobs in the UK. The figure is expected to spark a backlash from shareholders… The oil major (up 25p at 1961p) admitted that the sum handed to Ben van Beurden was […]

Big Oil’s Broken Business Model

From an article by Michael T. Klare published 12 March 2015 by utne.com Big Oil’s Broken Business Model In the wake of collapsing oil prices, Big Oil must alter its broken business model or face being outcompeted by smaller, nimbler energy producers. Many reasons have been provided for the dramatic plunge in the price of […]

For Shell and Exxon, Timing Is Key For Surviving Oil’s Price Plunge

From an article by Andy Tully posted on Thu, 12 March 2015 22:44 on OilPrice.com For Shell and Exxon, Timing Is Key For Surviving Oil’s Price Extracts When it comes to surviving the plunge in oil prices, timing is everything. While many oil companies large and small are reducing, postponing or outright abandoning costly future projects […]

Shell awards CEO van Beurden €24m pay package

Royal Dutch Shell CEO Ben van Beurden qualifies as a genuine FAT CAT. According to an FT article published today, Royal Dutch Shell’s chief executive Ben van Beurden has been awarded a total of €24.2m for his work last year, despite the fact that Shell’s shares have under-performed in the past 12 months.  Extract from a […]

How Big Oil Is Profiting From the Slump

From an article by Javier Blas published 12 March 2015 by Bloomberg (Bloomberg) — Europe’s largest oil companies are gaining support from an unlikely source as they confront the industry’s worst slump since the financial crisis: lower oil prices. Although better known for their oil fields, refineries, and petrol stations, BP Plc, Royal Dutch Shell […]

Exxon, Shell’s spending patterns may help them through oil price drop

* Two biggest oil firms have finished major projects * Exxon, Shell able to cut 2015 spending * All oil majors face 2015 negative cashflow * Set to increase borrowing easily to cover shortfalls By Ron Bousso and Dmitry Zhdannikov LONDON, March 10 (Reuters) – The world’s two biggest oil firms, Exxon Mobil Corp and […]

Royal Dutch Shell Faces $18 Billion Cash Flow Deficit in 2015-2016

Article by Jayson Derrick, Benzinga Staff Writer, published 09 March 2015 by benzinga.com under the headline: Royal Dutch Shell Faces $18 Billion Cash Flow Deficit in 2015-2016, Says Oppenheimer In a report published Sunday, Oppenheimer analyst Fadel Gheit estimated Royal Dutch Shell plc (NYSE: RDS-A) will face a free cash flow deficit in both the […]

JP Morgan Warns Royal Dutch Shell Investors

By: MICHEAL KAUFMAN Published: Mar 2, 2015 at 12:24 pm EST In a report published on Monday, JP Morgan has advised the stock market participants to keep an eye on the “five key factors” that could undermine RoyalDutch Shell plc (ADR) (NYSE:RDS.A) earnings during the first quarter of fiscal 2015 (1QFY15). JP Morgan is of […]

Canada’s energy slump to wipe out $23-billion over two years

From an article by Jeff Lewis published 24 Feb 2015 by The Globe and Mail under the headline: Canada’s energy slump to wipe out $23-billion over two years Extracts The slump in Alberta’s energy sector is set to wipe out billions more in corporate earnings, complicating growth plans and putting investor dividends at greater risk. […]

Why Stocks Of Chevron Corporation, Exxon Mobil, Royal Dutch Shell, And ConocoPhillips Should Be Avoided

Why Stocks Of Chevron Corporation, Exxon Mobil, Royal Dutch Shell, And ConocoPhillips Should Be Avoided Bidness Etc looks at why Barron’s Asia advises new investors against buying stocks of the four Big Oil companies, namely, Exxon, Chevron, Shell, and ConocoPhillips By: MICHEAL KAUFMAN Published: Feb 18, 2015 at 6:36 am EST Extracts Crude oil price […]

BP plc And Royal Dutch Shell Plc Perilous Investment Traps?

From an article by Royston Wild published 18 Feb 2015 by The Motley Fool under the headline: “BP plc And Royal Dutch Shell Plc Are Perilous Investment Traps” Extracts Needless to say, the effect of an eroding oil price has proved catastrophic for the world’s fossil fuel specialists in recent months. Indeed, a 47% decline […]

The credibility of Royal Dutch Shell oil demand forecasts

By John Donovan Forecasts of future oil demand and oil prices made by Royal Dutch Shell CEO Ben van Beurden have been widely reported. See syndicated Reuters article. He is not exactly a disinterested independent observer, as his personal income and the well-being and profitability of the oil company he leads, depends on these issues. […]

Big Oil Unable To Increase Reserves To Counter Declining Production

Bidness Etc discusses why major oil firms have been unable to replace their new reserves, despite crude production level falling since last year amid tumbling crude price By: MICHEAL KAUFMAN: Published: Feb 8, 2015 at 8:40 am EST According to the quarterly results announced during the past few weeks, major oil companies have reported a mediocre […]

BIG OIL: Who will blink first to set the M&A scramble in motion

With more than $110 billion of oil and gas assets on the block as companies big and small count the cost of the collapse in oil prices, it is now a question of who will blink first to set the M&A scramble in motion. Article published by Reuters 30 Jan 2015 under the headline: Buyers […]

Oil rout gives Exxon and Shell reason to buy rival ‘sisters’

…a major deal over the next year that will bring together two of the super majors, or see one of their smaller rivals swallowed up, is highly likely – and almost a certainty if historical precedent is anything to go by. Certainly, if the oil rout of the late 90s is anything to go by, a […]

Shell overstated its fourth quarter results by $178 million

Fri Jan 30, 2015 4:48pm GMT (Reuters) – Royal Dutch Shell (RDSa.L) said on Friday it had overstated its fourth quarter results by $178 million (118.44 million pounds) due to an error in the valuation of its fuel inventory. The company said its underlying earnings, which are most closely watched by analysts and investors, were […]

Inside Shell’s earnings report: Proof that the Saudis’ oil market strategy is working

By Puneet Kollipara January 29 at 5:43 PM Saudi Arabia shocked the world last fall in breaking from its traditional mold of keeping oil production artificially low to prop up oil prices. Instead, the Saudis and other OPEC nations voted to keep oil output steady even in the face of a global supply surplus, a move seemingly designed […]

BP Shell merger on the horizon

Potentially, a prolonged period of low oil prices might finally see BP and Shell, like two drunken sailors, holding each other up through the merger that has so long been on the horizon. AN ARTICLE BY ALEX BRUMMER FOR THE DAILY MAIL PUBLISHED 30 Jan 2015  “ALEX BRUMMER: Big oil players confront the slump by slashing capital […]

Shell resumes Arctic drilling but cuts $15bn from global investment

Royal Dutch Shell is reviving plans to drill for oil in Arctic in a move likely to intensify its battle with environmentalists. The Anglo-Dutch giant’s chief executive Ben van Beurden accepted that Arctic drilling “divides society”, but said the world needs new sources of oil. Greenpeace said Shell was taking a “massive risk” in a […]

Shell Chief Pledges Everything to Maintain Its ‘Iconic’ Dividend

BLOOMBERG: Shell Chief Pledges Everything to Maintain Its ‘Iconic’ Dividend by Nidaa Bakhsh and Mark Barton (Bloomberg) — Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden pledged to do all he can to maintain payments to shareholders of Europe’s largest oil company after crude prices fell by more than half in the past six months. […]

Royal Dutch Shell Reports 57 Percent Drop in Net Income

LONDON — Jan 29, 2015, 3:42 AM ET: By DANICA KIRKA Associated Press Royal Dutch Shell PLC, Europe’s largest oil company by market value, said Thursday that fourth quarter net income fell 57 percent to $773 million and that it would cap spending this year in response to falling oil prices. Shell is one first big […]

Shell to cut spending by $15 bln over next 3 years

Jan 29 (Reuters) – Oil major Royal Dutch Shell said on Thursday it would curtail spending by $15 billion over the next 3 years while keeping dividends stable in a bid to calm investors amid plunging oil prices. Europe’s largest oil company by market value kept its fourth-quarter dividend stable versus the previous quarter at […]

Oil tumbles; U.S. crude prices near six-year low on record stockpiles

Goldman Sachs analysts said in a Tuesday note that they expected U.S. crude, also known as WTI, to remain near $40 a barrel in the first half of this year REUTERS By Barani Krishnan NEW YORK (Reuters) – Oil slumped on Wednesday, with U.S. crude prices at near six-year lows, after the government reported record-high […]

Oil giant Shell set for further cost cuts

By GEOFF HO: Published Sunday January 25, 2015   Royal Dutch Shell chief executive Ben van Beurden will outline how the company plans to deal with the collapse in crude oil prices when he unveils its results on Thursday. The oil giant is expected to reveal further cost-cutting measures alongside a 4.6 per cent fall […]

Can BP and Royal Dutch Shell weather the storm?

From an article by Kyle Caldwell published by The Telegraph on 23 Jan 2015 under the headline: “Oil shares yield 6pc, but are the dividends safe?” Since June the price of Brent Crude has fallen from $116 a barrel to just below $50 last week. The plunge means these companies will generate far lower revenues […]

Oil majors to preserve dividends despite oil collapse, tap debt

REUTERS ARTICLE PUBLISHED 23 Jan 2015 (Reuters) – Europe’s oil majors will strike a sober note in their fourth-quarter results and investors will focus on companies’ plans to maintain cherished dividends and their strategies to cope with the oil prices collapse that caught many unawares. Having sold around $120 billion in assets in recent years […]

Why Shell And Exxon Are Interested In Gulf Of Mexico Bidding

By: MICHEAL KAUFMAN: Published: Jan 21, 2015 Some of the largest global oil producers have shown an early interest in the first phase of Mexico’s bidding round for blocks of exploratory crude oil and natural gas, located in the Deepwater region of Gulf of Mexico. According to a Mexican government official, the oil and gas blocks […]

Big Oil’s dividends look safe – for now

Big Oil’s dividends look safe – for now FIONA MAHARG-BRAVO Reuters Breakingviews Published Tuesday, Jan. 20 2015, 4:40 PM EST Oil companies don’t like to cut dividends, even when the price of crude tumbles. Dividends are likely to be held firm this year. But the pressure on payouts is mounting. The halving of the crude […]

The dramatic consequences of plunging oil prices

“Brent futures are set to fall to as low as $31 a barrel by the end of the first quarter from about $48 now.”; “People know these prices are unsustainable,” he said, and they will lead to large-scale layoffs and cuts in maintenance spending, which will eventually sharply reduce overall output. BP’s announcement of layoffs was […]

Shell Doomed Project Scalebacks

From an article by Royston Wild published 15 Jan 2015 by The Motley Fool under the headline: “Why Royal Dutch Shell Plc And BP plc’s Project Scalebacks Are Doomed To Fail” With the oil price collapse showing no signs of bottoming any time soon, the world’s fossil fuel giants are in a desperate struggle to […]

BP sees $50 oil for three years

BP can’t be immune to the upheaval. Today its job announcement is focused on the UK. But it won’t be long till it announces staff reductions in Houston, another of its important centres. Robert Peston article published by BBC News 15 Jan 2015 BP sees $50 oil for three years BP’s job announcement later today, […]

Shell puts the brakes on

By John Donovan In response to the collapse in the price of oil, Shell and Qatar Petroleum have abandoned a $6.4 billion joint venture to build a petrochemical complex in the Ras Laffan Industrial City.  Extract from a Reuters Report:, Prices quoted by companies to build the huge complex showed the project was “commercially unfeasible, […]