Posts under ‘Ben van Beurden’

Shell outlines tighter upstream, refining footprint in post-COVID transition plans

• Author Robert Perkins 
• Editor Debiprasad Nayak 
• Commodity Coal,  Natural Gas,  Oil

London — Shell plans to focus its future upstream operations on nine core areas and transform its refining portfolio into six integrated sites which are part of moves to grow its low-carbon businesses and support its cash flows, the major said Oct. 29.

Reporting stronger than expected third-quarter earnings, Shell said it wants to pursue more “value over volume” by simplifying its upstream assets to nine significant core positions; Brazil, Brunei, Gulf of Mexico, Kazakhstan, Malaysia, Nigeria, Oman, Permian and UK North Sea. It said combined the areas will generate more than 80% of its upstream cash flow from operations. read more

GlobeNewswire

ROYAL DUTCH SHELL PLC THIRD QUARTER 2020 PRESS RELEASE

October 29, 2020 03:01 ET | Source: Shell International B.V.

The Hague, October 29, 2020 – Shell today announced a cash allocation framework that will enable it to reduce debt, increase distributions to shareholders, and allow for disciplined growth as it reshapes its business for the future of energy. Ongoing work to reshape Shell’s portfolio is expected to deliver continued cash generation to grow its low-carbon businesses as well as to increase shareholder distributions, making a compelling investment case. read more

Shell mulls former BHP chief as new chairman

Harry Banks: Sunday 25 October 2020

Former BHP Billiton boss Sir Andrew Mackenzie is in pole position to become the next chairman of Shell, reports emerged today.

Mackenzie joined the Shell board this month as a non-executive director but is expected to move into the chair soon to be vacated by Charles Holliday.

The Sunday Telegraph first reported the news.

The oil giant was forced into its first dividend cut in more than 70 years earlier this year thanks to the oil price crash and the coronavirus pandemic. read more

The Telegraph

Big Oil’s huge bet to save itself from extinction

A shift to renewables and the rise of green energy giants means the future for former fossil fuel titans is far from certain, writes Rachel Millard

Tuesday 20 October 2020 The Daily Telegraph 

EXTRACTS

It was the early days of 2015 when Shell’s chief executive Ben van Beurden ascended the stage of the InterContinental Hotel on London’s Park Lane with a stirring message for his industry peers amid strengthening global action on carbon emissions. read more

By John Donovan

Displayed below is a letter dated 16 October 2020 addressed to the Chairman of Royal Dutch Shell Plc. 

The letter is from attorneys representing specified Nigerian OML17 Host Communities and specified local government areas of Rivers State.

It contains extremely serious allegations against Shell, including systematic genocide and catastrophic damage to the environment. 

As can be seen, reasonable demands are made. 

I am aware that Shell CEO Ben van Beurden and Shell’s legal boss Donny Ching have copies of the letter. read more

Shell Plans to Cut Thousands of Jobs Amid Shift to Carbon Neutrality: What Investors Need to Know

Shell’s job cuts are just the latest unsettling news for Wall Street’s least-loved oil major (shares of Shell are down more than any other integrated oil and gas company so far this year).

BY Daniel Foelber:(TMFpalomino2) Oct 10, 2020 at 7:54AM

The case for why the job cuts are the right decision for investors.

To say it’s been an off-year for big oil would be an understatement. Shockwaves of volatility and lower energy demand have rippled through global markets. An added threat is the increasing role of renewables in the energy mix as wind and solar companies continue to gain market share — and oil companies lose it. read more

Royal Dutch Shell: Energy Transition Woes

• Poor messaging from management, as well as an ill-prepared balance sheet caused in part by buybacks, has caused the European major a lot of pain.
• Arguably, senior executives deserve to be shown the door. But even if that happens, expect the pivot away from fossil fuels to continue.
• Is the move into Power and other “Green Energy” assets the right move? Maybe, maybe not.
• This idea was discussed in more depth with members of my private investing community, Energy Income Authority. Get started today »

I often get asked why I don’t cover the supermajors all that often on Seeking Alpha. The answer comes down to a rather simple reality: time invested versus potential gain. Anyone that has followed my long / short book knows that whatever I take a stake in, I know inside out. Quite frankly, the sprawling operations of most majors coupled with competing against institutionals that have enough research analysts on the payroll to pack a local gymnasium makes it a losing proposition – or at least in my view. read more

Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The last major reorganization dates back to 2016 when Shell cut 10,000 jobs after the acquisition of BG Group.

English translation of an article published by the Dutch equivalent of the Financial Times.

Thousands of jobs at stake in Shell reorganization, not spared

Bert van Dijk

IN BRIEF

Shell on Wednesday announced a major reorganization that will see thousands of jobs lost. The restructuring is also reportedly hitting the top layers of management. The restructuring is needed to reduce costs as oil prices have fallen sharply and the outlook has deteriorated. Shell is also working on it. a new strategy. This will be revealed early next year. read more

FINANCIAL TIMES

Shell slims down to shape up for the energy transition

Anjli Raval, Senior Energy Correspondent

…the Anglo-Dutch group has been forced into previously unthinkable moves, change and scrutiny of its capital allocation plans mount, is scrambling to come up with an updated plan. In the meantime, it is cutting costs and streamlining.

On Wednesday it offered a glimpse into Project Reshape, its organisational restructuring in which up to 9,000 jobs will be cut from its 83,000-strong workforce to save $2.5bn a year. read more

Royal Dutch Shell’s Ben van Beurden on journey from hero to zero

First the investors, now the staff. Royal Dutch Shell’s net-zero dreams aren’t so cool for everyone: falling shares, a shrunken dividend and up to 9,000 job cuts. Can Ben van Beurden green up the business without the heat also rising on him?

At the end of April the oil group’s chief executive turned up with the first dividend cut since the Second World War: a two-thirds chop to the £11.6 billion paid last year. A mix of Covid-19 and plunging energy prices finally did for the “you can be sure of Shell” mantra. But there was a possible upside, as JP Morgan Cazenove noted. The cut would enable Shell to “accelerate its energy transition agenda to net-zero carbon by 2050”. Maybe it will. And no… read more

Shell to cut up to 9,000 jobs in low-carbon transition

By Ron Bousso. 30 Sept 2020

LONDON (Reuters) – Royal Dutch Shell announced on Wednesday plans to cut up to 9,000 jobs, or over 10% of its workforce, as part of a major overhaul to shift the oil and gas giant to low-carbon energy.

Shell, which had 83,000 employees at the end of 2019, said that the reorganisation will lead to additional annual savings of around $2 billion to $2.5 billion by 2022, going partly beyond cuts of $3 to $4 billion announced earlier this year. read more

Shell plans up to 9,000 job cuts worldwide

By Allister Thomas

Shell has announced plans for between 7,000 – 9,000 job cuts from its global workforce by the end of 2022.

The energy giant, which has been grappling with the effects of the oil price downturn and Covid-19, follows rival BP who earlier this year announced plans for 10,000 job cuts.

Shell, which employs 6,000 people in the UK, including 1,000 directly in its Upstream oil and gas business in the country, said the “reduced organisational complexity” will save between $2billion – $2.5billion by 2022 on an annual basis. read more

Shell to cut up to 9,000 jobs as oil demand slumps

30 Sept 2020

Royal Dutch Shell has said it plans to cut 7,000 to 9,000 jobs as it responds to challenges including the slump in oil demand amid the Covid-19 pandemic.

The oil giant said the cuts would be implemented by 2022 and included 1,500 people who were taking voluntary redundancy.

It gave no indication of where the job losses would happen.

The move comes five months after it cut its dividend for the first time since World War Two.

Shell chief executive Ben van Beurden said the job cuts were “the right thing to do for the future of the company” as it strives to become a net-zero emissions energy business. read more

Exclusive: Shell launches major cost-cutting drive to prepare for energy transition

By Ron Bousso: SEPTEMBER 21, 2020

LONDON (Reuters) – Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters.

Shell’s new cost-cutting review, known internally as Project Reshape and expected to be completed this year, will affect its three main divisions and any savings will come on top of a $4 billion target set in the wake of the COVID-19 crisis. read more

The international oil giant will cut about 40pc of overheads including staff…

Shell cuts back on fracking to fund renewable energy drive

The oil giant is seeking to free up investment for early-stage carbon capture and hydrogen projects

Falling oil and gas prices due to the pandemic have taken the shine off many assets and triggered heavy write-downs.

By Rachel Millard: 19 September 2020 • 9:30pm

Shell is making deep cuts in its fracking business as it tries to free up cash to cope with the pandemic and invest in renewable energy. read more

Big Oil’s patchy deals record casts shadow over green makeover

When Shell bought BG Group for $54 billion in 2016 in the midst of the price crash, Chief Executive Ben van Beurden made a compelling case to investors…: Speaking in July, Shell’s CEO stood by the deal. “The company did get stronger, but indeed the company was not able to withstand the onslaught of COVID if we wanted to adopt a prudent stance … I remain convinced it was the right move,” van Beurden told reporters. read more