Callum Turcan: Nov 15, 2017
Summary
- Royal Dutch Shell generates free cash flow in Q3.
- Outlook for Q4, even in light of impending capex increase, looks bright due to Brent rallying.
- Over $10 billion in net debt reduction since the end of Q3 2016.
- Overview of Q3 results and what to expect going forward.
Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has come a long way since it bottomed out in early-2016. Its latest earnings reportreinforced the notion that when Brent is trading in the $50s, Shell’s cash flow position becomes balanced. Cash flow neutrality is the key breakeven point for the industry in the current environment, as oil & gas giants need to show that they can cover capital expenditures and large dividends through organic means at realistic prices. Let’s check out how Royal Dutch Shell did in a low $50s Brent world, with an eye on organic cash inflows and outflows. FULL ARTICLE WITH CHARTS