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Shell’s Nigerian accounts frozen in oil deal dispute

Shell’s Nigerian accounts frozen in oil deal dispute

Feb. 19, 2021 9:59 AM ET Royal Dutch Shell plc (RDS.A) By Carl SurranSA News Editor: 12 Comments

  • A Nigerian court has restricted Royal Dutch Shell’s (RDS.ARDS.B) access to its bank accounts in the country amid a legal dispute over a pipeline deal six years ago.
  • A local oil producer is demanding billions of dollars in damages, claiming Shell misrepresented the condition of the pipeline and undercounted the volume of crude one of its facilities received from the Nigerian company, Bloomberg reports, citing court documents.
  • The allegations involve its $2.4B purchase in 2015 of a 45% interest in an oil block and pipeline from three multinational companies, including Shell.
  • The dispute is just one among several related to Shell’s activities in Nigeria; YTD, a Dutch court has ruled Shell is liable for oil spills in two villages 13 years ago, and the U.K. Supreme Court allowed 40K fishermen and farmers to sue Shell in England.
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    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell’s Strategy Is Satisfactory

    Shell’s Strategy Is Satisfactory

    The Global Investor: Feb. 14, 2021

    Summary

    • This article takes a close look at Shell’s Strategy Day 2021, which focused on a net-zero emissions target and the businesses that Shell plans to operate.
    • Ultimately, Shell isn’t changing its strategy too much, sticking to its core oil and gas businesses.
    • By focusing on oil and gas and value over volume, Shell is a safer bet than BP which is betting big on a risky corporate restructuring.

    The purpose of this article is to analyze Shell’s recent and very important Strategy Day. Shell had promised to give a lot of detail on an organizational restructuring at this event and it had the potential to radically change Shell’s direction. This means the Strategy Day presentations had a possibility to change my bullish thesis on the company. In that article I also gave some of my expectations of what I expected to see in Shell’s Strategy Day, and here I review the key takeaways of the Strategy Day and what they mean for my bullish thesis. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell’s ‘Hard Look’ At Nigeria – All Bark No Bite

    Shell’s ‘Hard Look’ At Nigeria – All Bark No Bite

    Dilya Safine, CFA: Feb. 08, 2021 4:50 PM ET Royal Dutch Shell plc

    Summary

    • Shell’s comments on its Q4 call about “taking a hard look” at its onshore Nigeria assets prompted concerns that it might look to exit the region.
    • I estimate that its onshore Nigerian assets to be worth at least 6% of its stock price, as well as the backbone for its offshore and LNG expansions.
    • I believe that Shell’s comments are aimed at achieving more favorable terms for its other contract negotiations. More details at its Analyst Day.

    Q4 Earnings: Comments on Nigeria Raise Alarms

    On its 4Q’20 earnings call, Shell CEO Ben van Beurden called the company’s Nigerian assets a “headache” and said it is time to “take a hard look” at the company’s operations in the country. He cited frequent incidents of oil theft and operational challenges in the Niger Delta, blaming the leaks that his company had been forced to clean and compensate for on pipeline sabotage. These comments raised alarms that Shell (NYSE:RDS.A)(NYSE:RDS.B) might look to exit the country, and the stock fell as a result. RDS is expected to provide additional detail on its operations during its Strategy Day this week. However, I believe that the company is unlikely to halt its operations in the region, as it would have a material impact on its valuation and impact other areas of its business, as I explain below. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell: What It Will Take To Be Investible Again

    Conclusion: I Regard Shell As Uninvestable

    Shell: What It Will Take To Be Investible Again

    : Long Only, Deep Value, Growth, Foreign Companies: JAN 19, 2021

    Summary

    • Shell’s dividend cut and unpredictability last year cost it a lot of shareholder confidence.
    • I outline three metrics I think show whether it’s investable again.
    • On all three metrics, I continue to see it as uninvestable with confidence.

    U.K.-based oil major Shell (RDS.AOTCPK:RYDAF) didn’t have a great time of it last year when it came to shareholder relations. With its mammoth dividend cut and poor signaling thereof before it was made, a lot of shareholders ditched the holding. I sold my entire stake and reinvested the proceeds in more Exxon Mobil (XOM).

    Below, I outline what I think are the key challenges to Shell being investable at this point. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell’s warning signals pain not yet over for oil majors

    Shell’s warning signals pain not yet over for oil majors

    Dec. 21, 2020 12:45 PM ETRoyal Dutch Shell plc (RDS.A)By: Carl SurranSA News Editor17 Comments

  • Royal Dutch Shell’s (RDS.A -5.7%) update, saying it expects to write down the value of its assets by as much as $4.5B and warning of another set of poor earnings in Q4, is the first indication of another tough quarter for oil and gas producers that continue to struggle with weak demand as COVID-19 lockdowns hit economies hard.
  • Shell says its oil and gas production business should report a third straight quarterly loss while Q4 results from its trading operations – a bright spot earlier in the pandemic amid volatile oil prices – would come in “significantly lower” than in Q3.
  • The S&P energy sector (XLE -3.8%) is today’s worst market performer, and Big Oil names are getting trounced but have moved off day’s lows: XOM -2.9%CVX -1.9%BP -5.7%.
  • “The indicative guidance looks disappointing, particularly in the context of the strong run Shell has had in recent weeks,” RBC analyst Biraj Borkhataria says.
  • Cowen analysts maintain their Buy rating and $41 price target for Shell shares, as the reduced cash flow outlook is offset by today’s announced divestment, and as such the analysts retain their outlook that debt will hit target levels around year-end 2021 to enable buybacks in 2022.
  • Shell says the anticipated $3.5B-$4.5B writedown includes an impairment of its Appomattox deepwater oil and gas project in the Gulf of Mexico, as well as charges related to its refining operations and onerous gas contracts.
  • The latest writedown follows Shell’s $16.8B writedown in Q2 and a sharp cut in its price outlook.
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    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Green transition friction prompts wave of resignations at Shell

    Green transition friction prompts wave of resignations at Shell

    Dec. 09, 2020 5:26 AM ETRoyal Dutch Shell plc (RDS.A)By: Yoel Minkoff, SA News Editor46 Comments

  • Royal Dutch Shell (RDS.A, RDS.B) has been hit by the departure of several clean energy executives amid a split over how aggressively the oil giant should shift towards greener fuels, FT reports.
  • Those include Marc van Gerven, who headed the solar, storage and onshore wind businesses, Eric Bradley, who worked in Shell’s distributed energy division, and Katherine Dixon, a leader in its energy transition strategy team. Other top executives are due to leave the company, though not every move is known to be linked to the pace of change.
  • The wave of resignations come shortly before Shell is set to announce a strategy update in February, spelling out how it plans to become a net zero emissions business.
  • In August, rival BP (NYSE:BP) said it would shrink oil and gas output by 40% over the next decade, a move analysts predict will force Shell down a similar path.
  • Premarket: RDS.A +3.1%; RDS.B +2.9%.
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    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Chevron Vs. Shell: Chevron Wins By A Landslide

    Chevron Vs. Shell: Chevron Wins By A Landslide

    : Oct 20, 2020

    Summary
    • Over the last 5 years, Chevron has consistently outperformed Shell.
    • On financial metrics, Chevron looks much better than Shell.
    • Shell’s share count goes up, Chevron’s goes down.
    • Chevron’s dividend continues to go up while Shell cuts its dividend.

    Shell’s zero-emission goals will limit profit potential.

    According to Seeking Alpha (see here), Chevron (CVX) has replaced Exxon (XOM) as the largest oil company by MV (Market Value). In many ways, this is more a race to the bottom than a race to the top with CVX falling 39% YTD while XOM is falling 52%.

    Another oil company in the doldrums is Shell (RDS.A) (RDS.B) whose price has fallen by 56%.

    I have recently compared Exxon to Chevron Exxon Vs. Chevron: Exxon Wins By A Nose” and Exxon to Shell Exxon Vs. Shell: Exxon Wins By A Dividend.” read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Seeking Alpha: Senators to push sanctions bill on Russia’s Nord Stream 2 pipeline

    Senators to push sanctions bill on Russia’s Nord Stream 2 pipeline

    Jun. 3, 2020 5:51 PM ET|About: Public Joint Stock Company … (OGZPY)| By: , SA News Editor

    A bipartisan group of U.S. senators is set to introduce legislation that would expand sanctions against Gazprom’s (OTCPK:OGZPY) Nord Stream 2 gas pipeline between Russia and Germany by targeting insurance companies that work with Russian vessels on completion of the project.

    Senator Ted Cruz, one of the sponsors of the legislation, says the pipeline poses “a critical threat to America’s national security and must not be completed.”

    The bill would expand sanctions to companies that provide “underwriting services or insurance or reinsurance” for vessels working on the pipeline as well as those that provide “services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering” of vessels. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Seeking Alpha: Oil majors turn to bond markets to preserve dividends – FT

    |About: Exxon Mobil Corporation (XOM)|By: , SA News Editor

    Some of the world’s largest oil companies  have raised more than $32B in recent weeks to ensure they have the cash to deal with the economic effects of the coronavirus while preserving dividends, the Financial Times reports.

    ExxonMobil, Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B), Equinor, Total, and BP (NYSE:BP) have sold debt to raise dollars or euros since mid-March.

    They’re also paring capex, reducing costs, pausing stock buybacks, and delaying project approvals.

    Besides the bond sales, Shell and BP have also obtained new multibillion-dollar credit facilities. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell surges as $12B credit facility boosts dividend hopes

    |About: Royal Dutch Shell plc (RDS.A)|By: , SA News Editor

    Royal Dutch Shell (RDS.A +5.6%) opens with strong gains after saying it expects only a “relatively minor” impact from the coronavirus on overall demand for its oil products during Q1.

    Shell sees oil products sales volumes at 6M-7M bbl/day for the quarter, compared with 6.5M bbl/day in the year-earlier period, with Q1 upstream oil and gas production estimated at 2.65M-2.72M boe/day, with margins affected by the weak environment.

    The company says it has secured a new $12B credit facility as it seeks to safeguard dividends, which follows a $10B facility obtained in December, combining to boost available liquidity to more than $40B. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Seeking Alpha: Shell pledges to stay in Canada, top exec says

    Shell pledges to stay in Canada, top exec says

    |About: Royal Dutch Shell plc (RDS.A)| By , SA News Editor

    Royal Dutch Shell (RDS.A -0.4%) is staying in Canada even as others pull up stakes, Shell Canada head Michael Crothers tells Bloomberg.

    Shell’s future in the country is largely as a natural gas producer and exporter focused on the US$30B LNG Canada project, though the company also is committed to its local chemicals and retail businesses, Crothers says.

    Aside from LNG Canada – which is 40%-owned by Shell – and the Groundbirch gas production complex in British Columbia that will partly supply it, the company has some light oil production, the Scotford refinery, two chemicals plants and a carbon capture facility in Alberta, plus the Sarnia refinery and a lubricants plant in Ontario.

    Shell also still owns a 10% stake in the Athabasca oil sands after selling most of its holdings in 2017; Crothers says the company has no plans to sell the rest because it is a core asset which provides feedstock for the Scotford complex. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Shell Has Best Shale Strategy Of All Oil Majors

    Summary

    *While Chevron, Exxon, Occidental and other oil majors are eagerly ramping up shale acquisitions and production, Shell has been more reserved in this regard.

    *Shale resources may help companies improve on upstream production volumes and reserves, but profitability is questionable, leading to potentially net negative trade-off for investors.

    *The ethane plant in Pennsylvania is an example of Shell wisely making use of lower natural gas prices, rather than being on the upstream side, losing money.

    Much has been made lately of the deep dive into shale that the likes of oil majors such as Chevron (NYSE:CVX) and Exxon (NYSE:XOM) decided to take in the past few years. A fight over Anadarko (NYSE:APC) between Chevron and Occidental (NYSE:OXY) was perhaps the most emblematic symbol of this industry-changing trend. Analysts and investors quickly jumped to the conclusion that it is imperative for all oil majors to jump in and compete with each other on acquiring and developing shale assets. Exxon and Chevron are currently planning to increase shale production to 1 mb/d each. Shell (NYSE:RDS.A) (NYSE:RDS.B) has been more timid in this regard, and given the profitability profile of the overall shale industry, I am fully satisfied with its position in this regard. Shell’s downstream investments, such as the Pennsylvania ethane plant, meant to take advantage of low shale prices, seems to make far more sense than rushing to produce the low-priced natural gas. Nor does it seem all that wise to rush to produce shale oil, which requires extremely high capital expenses to produce. Some investors may believe that it is more important to maintain reserves and production by diving into the shale patch. I personally think that it is not worth diluting Shell’s overall profitability profile by producing shale oil and gas for the sake of maintaining the company’s overall production numbers. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Seeking Alpha: Dutch regulator wants Groningen gas production cut faster than planned

    |About: Royal Dutch Shell plc (RDS.A)| By , SA News Editor

    Production at the Groningen natural gas field in the Netherlands needs to be cut faster than planned, Dutch gas sector regulator SodM says after a 3.4 magnitude earthquake hit the region last week.

    “From a safety perspective, SodM recommends that not more than 12B cm be extracted from the Groningen gas field in the following gas year in the event of an average winter,” the regulator says. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Royal Dutch Shell News 22 March 2019: 5 Articles

    Exxon Mobil Corp., Royal Dutch Shell, Chevron, Total and BP together have spent more than $1 billion on public relations since the Paris Agreement.

    The world’s five largest publicly traded oil companies are increasing their investments in oil and gas, putting a combined $110 billion in new fossil-fuel production.

    Meanwhile, those firms are projected to spend just $3.6 billion on low-carbon investments, such as biofuels and renewables, according to a new analysis that Influence Map, a British nonprofit that analyzes corporate influence on climate policy, derived from industry data and numbers buried in company disclosures.

    The reckless disparity comes just months after the United Nations warned that the world must rapidly phase out fossil fuel use over the next decade or face catastrophic global warming of at least 2.7 degrees Fahrenheit. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Royal Dutch Shell News 10 Jan 2019: 2 articles

    Jan. 9, 2019 11:58 AM ETBy: , SA News Editor

    The Dutch High Court says it will consider demands on Jan. 17 seeking an immediate end to gas production from the Groningen field, after the government said it would cut output gradually.

    The High Court says it received 26 objections to the plan, expressing concerns about seismic risks caused by drilling and demanding an urgent halt in production.

    Analysts say the court is unlikely to grant an immediate halt because the Netherlands still depends on Groningen gas for a significant part of its energy supply. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

    Royal Dutch Shell News 3 Jan 2019

    Singapore — Shell will load the first condensate cargo from Australia’s Prelude FLNG project at end January, according to shipping reports and sources Thursday.

    The condensate will be loaded in a 80,000 mt clip over January 31 to February 2, shipping reports showed.

    A vessel has not been fixed for the cargo, and shipbrokers said Shell began looking for an Aframax tanker to load the cargo Thursday.

    Shell did not immediately respond to an email query seeking comment.

    The destination of the cargo is unclear, though trade sources have said that the oil major will likely use the cargo within its own network of splitters and refineries. read more

    royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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