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Posts Tagged ‘Oil Prices’

Reuters: Shell slows refining, takes up to $800 million hit after oil crash

Ron Bousso: MARCH 31, 2020

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) slowed refining output and will write down up to $800 million (649.46 million pounds) in the first quarter of 2020 after a dramatic drop in oil demand due to the coronavirus.

In an update ahead of first-quarter results, Shell said it expects “significant uncertainty” over oil and gas prices and demand as a result of falling consumption.

With the global lockdown of 3 billion people – roughly 40% of the world’s population – demand for fuel has been in free fall, forcing Shell to lower its refining output by around 13%. 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 pulls out of U.S. Lake Charles LNG project, Energy Transfer delays FID

UPDATE 2-Shell pulls out of U.S. Lake Charles LNG project, Energy Transfer delays FID

Ron Bousso, Shradha Singh: MARCH 30, 2020 

* Energy Transfer delays FID from late 2020 to early 2021

* Shell relinquishes 50% stake amid spending cuts

* Decision comes after collapse in oil prices 

By Ron Bousso and Shradha Singh

March 30 (Reuters) – Royal Dutch Shell Plc pulled out of a major liquefied natural gas (LNG) export plant under development in Louisiana following the recent crash in oil and natural gas prices that has forced the company to make deep spending cuts.

Energy Transfer LP, which was developing the project with Shell, said it remains focused on the commercial development of Lake Charles and is working toward making an early 2021 final investment decision (FID) to build the plant. 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.

OilPrice.com: Prepare For The Next Wave Of Oil Bankruptcies

Alex Kimani: Oilprice.com March 24, 2020

Last year, the energy industry was rocked by record bankruptcies and write-downs that did not spare even the oil majors. According to Energy and Restructuring law firm Hayes and Boone’s, a grand total of 50 energy companies filed for bankruptcy last year, including 33 oil and gas producers, 15 oilfield services companies and two midstream companies.

Meanwhile, Chevron Corp., Schlumberger, and Royal Dutch Shell announced multi-billion dollar asset impairments citing unfavorable macro outlook. 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.

Reuters: Big Oil may have to break dividend taboo as debt spirals, investors say

PUBLISHED WED, MAR 25 20205:14 AM EDT

KEY POINTS
  • The world’s biggest oil and gas firms should break an industry taboo and consider cutting dividends as they weather the fallout from the pandemic, investors say.
  • Investors prefer the dividend cut to companies taking on any more debt to maintain payouts.
  • The top five so-called oil majors have avoided reducing dividends for years to keep investors sweet and added a combined $25 billion to debt levels in 2019 to maintain capital spending, while giving back billions to shareholders.

The world’s biggest oil and gas firms should break an industry taboo and consider cutting dividends, rather than taking on any more debt to maintain payouts as they weather the fallout from the coronavirus pandemic, investors say.

The top five so-called oil majors have avoided reducing dividends for years to keep investors sweet and added a combined $25 billion to debt levels in 2019 to maintain capital spending, while giving back billions to shareholders. 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 joins other oil giants in slashing spending after coronavirus and ‘oil war’ between Russia and Saudi Arabia causes prices to collapse

Royal Dutch Shell has announced it is planning to save at least $8billion in the coming year following the huge fall in oil prices.

The world’s ninth-largest company by revenue says capital expenditures are to be scaled back by $5billion. At the same time, underlying operating costs will be cut by at least $3billion to help cope with the impact of the coronavirus.

It still plans to go ahead with their $10billion divestment programme but have cancelled the next tranche of their share buyback programme. 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.

Reuters: Shell cuts 2020 spending by $5 billion, suspends share buyback

REUTERS: Ron Bousso: MARCH 23, 2020

LONDON (Reuters) – Royal Dutch Shell (RDSa.L) will lower spending by $5 billion and suspended its vast $25 billion share buyback plan in an effort to weather the recent collapse in oil prices, it said on Monday.

The Anlgo-Dutch oil major said it would reduce capital expenditure to $20 billion or below from a planned level of about $25 billion while seeking to reduce operating costs by an additional $3 billion to $4 billion over the next 12 months.

The cuts are expected to boost Shell’s cash generation by between $8 billion and $9 billion on a pre-tax basis. 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 acts to reinforce business resilience and financial strength

Shell acts to reinforce business resilience and financial strength

Mar 23, 2020

As the COVID-19 virus spreads across the world – seriously impacting people’s health, our way of life and global markets – Shell is putting the safety and health of our people and customers first, along with the safe operations of all our businesses.

At the same time, we are taking decisive action to reinforce the financial strength and resilience of our business so that we are well-positioned for the eventual economic recovery.

“As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business,” said Ben van Beurden, Chief Executive Officer of Royal Dutch Shell. “The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past.” 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.

The Times: Shell cuts spending by $9bn to counter oil price collapse

Shell cuts spending by $9bn to counter oil price collapse

Emily Gosden, Energy Editor:

Royal Dutch Shell is to stop buying back shares and slash spending by up to $9 billion this year in response to the collapse in oil prices.

The Anglo-Dutch energy giant said that it would suspend its share buyback programme after the current $1 billion tranche is completed.

It said that it aimed to reduce underlying operating costs by $3 billion to $4 billion over the coming 12 months and would reduce its capital spending to $20 billion or less, down from $25 billion planned.

Ben van Beurden, Shell chief executive, said that he was “taking immediate steps to ensure the financial strength and resilience of our business”. 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.

The Telegraph: Could Big Oil’s well of cash finally dry up?

ROBIN PAGNAMENTA: 19 MARCH 2020

It is the biggest company in the FTSE 100 and its largest dividend payer – a cornerstone investment for millions of pension funds around the world.

Royal Dutch Shell has not cut dividend payments to shareholders for more than 70 years but a precipitous plunge in oil prices this month has left chief executive Ben van Beurden facing an agonising choice.

The oil price war launched by Russia and Saudi Arabia on March 9 and fuelled by a collapse in demand linked to coronavirus will damage the entire industry – but some producers are far better positioned than others to survive a lengthy downturn. 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.

Bloomberg: Big Oil’s Big Crisis: Saving Sacred Dividends From Collapse

Laura Hurst and Kevin Crowley: Bloomberg: March 18, 2020 (Bloomberg) — To understand the crisis engulfing the world’s largest oil companies, just look at their dividend yields. Exxon Mobil Corp., for decades considered one of the bluest of blue-chip stocks, is paying investors 10%. For Royal Dutch Shell Plc, the Anglo-Dutch giant that hasn’t cut payments to shareholders since the Second World War, its 12-month dividend is equivalent to 14% of its current share price. BP Plc offers a yield of 12.4%, and France’s Total SA 11%. Yields at those levels typically suggest one thing: a significant risk that shareholders may not get the money they’ve been promised.

No Big Oil executive would ever accept that’s true — at least for now. Even as management teams confront both the catastrophic demand destruction wrought by the spread of coronavirus and an oil-price war between Saudi Arabia and Russia, they’re determined to keep paying.

“Nobody wants to be the CEO who cuts the dividend,” said Noah Barrett, a Denver-based energy analyst at Janus Henderson Group Plc, which manages about $375 billion. “They understand that any company that cuts, its shareholders will flow into competitors and be very, very hesitant to ever come back.” 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 PUBLISHES ANNUAL REPORT AND ACCOUNTS

12-Mar-2020

Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2019.

The 2019 Annual Report and Accounts can be downloaded from www.shell.com/annualreport.

In compliance with 9.6.1 of the Listing Rules, on March 12, 2020, a copy of the 2019 Annual Report and Accounts was submitted to the National Storage Mechanism. This document will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM.

Printed copies of the 2019 Annual Report and Accounts will be available from April 16, 2020, and can be requested, free of charge, at www.shell.com/annualreport. 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.

The Washington Post: The Oil Crisis Is Even Worse News for Shell and BP

March 10, 2020 at 10:43 a.m. GMT

The collapse in crude prices has brought into relief the correlation between oil majors’ financial leverage and the valuation of their shares. It’s a relationship that looks like particularly bad news for the bigger European firms.

Investors’ knee-jerk reaction to the downward lurch in the oil price was, naturally, more severe toward the companies that were more indebted. So shares in BP Plc, Royal Dutch Shell Plc, Equinor ASA and Eni SpA suffered more than Total SA and the two big U.S. majors, Exxon Mobil Corp. and Chevron Corp., when European markets closed on Monday. 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.

Reuters: Big Oil faces ‘survival mode’ payout strategies as prices dive

By Ron Bousso and Shadia Nasralla: 09 March 2020

LONDON (Reuters) – An oil price plunge means the world’s top energy companies will have to review promises to return billions to investors, either by slowing down share buybacks or reintroducing non-cash dividends, analysts said on Monday.

Brent crude <LCOc1> was trading at around $36 a barrel, down around 20% by 1645 GMT on Monday, when analysts lowered share price forecasts for top oil and gas producers. [O/R]

The Brent benchmark has fallen by as much as a third since Thursday, just before Russia walked away from an agreement by the Organization of the Petroleum Exporting Countries to cut output. 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.

The Guardian: Saudi Arabia price war wipes billions from value of major oil firms

Saudi Arabia’s oil price war has wiped billions of pounds from the market value of the industry’s biggest companies after oil markets recorded one of the biggest price slumps in history.

The decision of the world’s largest oil-producing nation to increase its production even as the coronavirus outbreak stalls global oil demand triggered a 30% drop in oil prices on Monday morning.

In early trade, Shell lost a fifth of its market value… 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.

OilPrice.com: This Supermajor Is Diving Into The Green Hydrogen Game

Haley Zaremba: Oilprice.com February 29, 2020

Hydrogen is often hailed as a silver bullet solution to emissions-free fuel since it burns clean, leaving nothing but water vapor, but the reality of using and producing green hydrogen is much more complicated. Hydrogen is already used as a power source in a lot of modern industries, including ammonia production, in refineries and as a feedstock for chemicals. The vast majority of the hydrogen in use, however, is not green hydrogen, but instead is what is known as “gray hydrogen.” While the hydrogen itself burns clean, the means of producing that hydrogen is actually fossil-fuels intensive (most often using coal or natural gas) and therefore does nothing in the way of decarbonizing the industries in which it is used. 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.

Reuters: No reform, no cash: majors hold out for new Nigerian oil law

* Draft law circulating, split into two bills

* Expected to be presented next week

* “Operators in Nigeria are waiting” – Total

By Libby George

ABUJA, Nigeria Feb 14 (Reuters) – A Nigerian oil reform two decades in the making is urgently needed to get money into its energy sector, industry executives say, as tax increases and regulatory uncertainty scupper investments.

Africa’s largest oil exporting nation has not carried out a full revamp of the law underpinning its oil and gas sector since the 1960s. Piecemeal tax hikes, and a growing lack of certainty around terms, have made companies wary. 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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