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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.

Oil giant Shell to axe 330 UK jobs due to covid restrictions – with thousands more to follow

Oil giant Shell to axe 330 UK jobs due to covid restrictions – with thousands more to follow

The move forms part of 9,000 jobs set to be axed across the business over the next two years following a collapse in demand for oil due to the ongoing coronavirus pandemic

BY Emma Munbodh: Deputy Money Editor
  • 13:31, 12 JAN 2021
  • UPDATED14:45, 12 JAN 2021

As well as cutting costs, Shell says it wants to be a net-zero emissions energy company by 2050

Shell is preparing to cut 330 UK jobs over the next two years as coronavirus continues to hit profits.

The oil giant said it plans to shed a quarter of its workforce in Aberdeen by December 2022. 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 to lay off nearly 700 workers in Louisiana after refinery closes

Shell to lay off nearly 700 workers in Louisiana after refinery closes

Jan. 4, 2021 Updated: Jan. 4, 2021 8:46 a.m. Royal Dutch Shell will lay off 698 workers as it closes its Convent refinery in Louisiana, part of a company effort to reduce carbon emissions.

The layoffs will begin in March and be completed by the end of August when the plant closes, according to information filed with the Louisiana workforce commission last month.

“The decision is part of the company’s global strategy to invest in a core set of uniquely integrated manufacturing sites that are also strategically positioned for the transition to a low-carbon future,” the Hague-based company said in November, when it began shutting down the refinery after failing to find a buyer for it. 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.

Questor: profit warnings, dividend cut and share price fall – Shell has all a contrarian could want

Questor: profit warnings, dividend cut and share price fall – Shell has all a contrarian could want

Questor share tip: oil stocks have been laid low by the slump in crude prices – but such weakness sows the seeds of its own demise

EXTRACTS A trading alert released just before the Christmas break capped a torrid year for Royal Dutch Shell and left shareholders with a quandary.

After all, here we have a company that has issued profit warnings, seen the price of its core products collapse, cut its dividend for the first time in several decades and suffered a share price plunge. What is not to like, from the point of view of a dyed-in-the-wool contrarian?  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 Crown Prince: ‘We must show more predictable financial results’

Translation of an article published by the Dutch financial newspaper, the FD. 

Shell Crown Prince: ‘We must show more predictable financial results’

Shell has had a bad year. The global corona pandemic left a huge hole in the financial results. The oil and gas multinational had to write off more than $20 billion on oil and gas fields and announced it would cut thousands of jobs.

Bert van Dijk 31 Dec ’20

Huibert Vigeveno is in charge of all Shell refineries and petrol stations. These will play a key role in the coming years, expects the 51-year-old Dutchman, tipped as a successor to Shell CEO Ben van Beurden. About CO₂ emissions: ‘There is often a gap between what a company promises and what it actually does. With us it is the other way around. ‘ 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.

2020 Was One of the Worst-Ever Years for Oil Write-Downs

2020 Was One of the Worst-Ever Years for Oil Write-Downs

Royal Dutch Shell’s Prelude floating facility has struggled to deliver income. PHOTO: ROYAL DUTCH SHELL AUSTRALIA/REUTERS

By Collin Eaton and Sarah McFarlane: Dec. 27, 2020 9:00 am ET

The pandemic has triggered the largest revision to the value of the oil industry’s assets in at least a decade, as companies sour on costly projects amid the prospect of low prices for years.

Oil-and-gas companies in North America and Europe wrote down roughly $145 billion combined in the first three quarters of 2020, the most for that nine-month period since at least 2010, according to a Wall Street Journal analysis. That total significantly surpassed write-downs taken over the same periods in 2015 and 2016, during the last oil bust, and is equivalent to roughly 10% of the companies’ collective 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.

Shell’s 2020 Write Downs Could Soar To $22 Billion

Shell’s 2020 Write Downs Could Soar To $22 Billion

By Charles Kennedy – Dec 21, 2020, 3:30 PM CST

Shell warned the market on Monday that it would book up to $4.5 billion more in post-tax charges in the fourth quarter, which would take the supermajor’s combined write-downs to over $22 billion in the year in which Big Oil significantly cut the value of their oil and gas assets.

Shell expects post-tax charges of between $3.5 billion and $4.5 billion in relation to impairments, asset restructuring, and onerous contracts in the fourth quarter, the company said in its Q4 2020 update note today. The charges will include partial impairment of the Appomattox asset in the U.S. Gulf of Mexico due to subsurface updates, charges in the oil products division, including such related to the announced transformation of the refinery portfolio, as well as charges from onerous contracts in the Integrated Gas division. 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.
  • 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 to write down assets again, taking cuts to more than $22 billion

    Shell to write down assets again, taking cuts to more than $22 billion

    In October, Shell, the world’s biggest LNG trader, wrote down the value of its LNG portfolio by just under $1 billion, focusing on its flagship Prelude project in Australia.

    LONDON (Reuters) – Royal Dutch Shell on Monday said it will write down the value of oil and gas assets by $3.5 billion to $4.5 billion following a string of impairments this year as it adjusts to a weaker 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.

    Female trader Stacie Pitts given top job at Royal Dutch Shell

    Female trader Stacie Pitts given top job at Royal Dutch Shell

    Emily Gosden

    Royal Dutch Shell has promoted Stacie Pitts to lead its oil trading business, making her the most influential woman in the male-dominated world of trading.

    Ms Pitts is to replace Mark Quartermain, who is retiring as head of crude trading, in a move first reported by Bloomberg. It also reported that two other women have been promoted to senior trading roles: Alice Acuna, the new head of liquefied natural gas trading, and Karrie Trauth, in charge of shipping. 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.

    Big carbon? Oil majors turn to nature to help plug revenue gap

    Big carbon? Oil majors turn to nature to help plug revenue gap

    By :

    LONDON (Reuters) – Oil companies such as BP and Shell are nurturing nature as a future revenue stream, betting on an expected rise in carbon credit prices as their fossil fuel profits ebb.

    European oil majors say investing in projects to create more credits is simply good business, offering new revenue streams at a time when oil prices have collapsed and appetite for new exploration evaporates. 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.

    Oil Majors Are Paying The Price For Investing In Renewables

    Oil Majors Are Paying The Price For Investing In Renewables

    By Alex Kimani – Nov 19, 2020, 7:00 PM CST

    Big Oil has been frequently lambasted for trying to burnish its green credentials through half-hearted investments in renewables. That might have been true for much of the past decade, but it appears to be changing as the oil and gas majors have started putting down big money into clean energy. For instance, European oil majors including BP Plc. (NYSE:BP), Royal Dutch Shell (NYSE:RDS.A), Eni SpA (NYSE:E), Total SA (NYSE:TOT), and Norwegian national oil company Equinor ASA (NYSE:EQNR) have already invested billions of dollars in renewable energy and made big clean energy commitments.Yet, Big Oil just can’t seem to catch a break, with stocks of oil and gas companies that are investing heavily in renewables being punished by the markets. 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.

    Is now the time to sell my Shell shares?

    Is now the time to sell my Shell shares?

    Tom Rodgers:

    There’s an old maxim in the wealth management business that no one ever lost money investing in Royal Dutch Shell(LSE:RDSB) shares. No matter how excited young analysts get about the next big thing in battery metals, cloud data storage or AI, they would still recommend buying Shell shares. That’s because the Anglo-Dutch giant has offered predictable dividend income since 1945.

    But could the tide have turned on Shell shares for good? 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 Singapore to cut 500 jobs over three years amid Pulau Bukom reorganisation

    Shell Singapore to cut 500 jobs over three years amid Pulau Bukom reorganisation

    UMA DEVI: [email protected]: Twitter @UmaDeviBT: TUE, NOV 10, 2020 SHELL Companies, the local subsidiary of Royal Dutch Shell, is set to cut 500 jobs or about 38 per cent of its local workforce over the next three years as the group makes changes to its largest refinery, on Pulau Bukom.

    A Shell spokesperson told The Business Times that the company will go from 1,300 staff to approximately 1,100 by the end of 2021, and down further to some 800 employees by the end of 2023.

    The earliest staff movement related to the reorganisation will take place in the fourth quarter of 2021, added the spokesperson.

    In a statement on Tuesday, Shell said Pulau Bukom will pivot from a crude-oil, fuels-based product slate towards new, low-carbon value chains. This is the company’s latest step towards its overarching ambition to be a net-zero emissions energy business by 2050. 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.

    Will Shell’s share price ever recover?

    Will Shell’s share price ever recover?

    Edward Sheldon, CFA: ·

    It’s fair to say 2020 has been a challenging year for Royal Dutch Shell (LSE: RDSB) investors. As a result of Covid-19, and the subsequent drop in demand for oil, Shell’s share price has plummeted. Year to date, shares in the FTSE 100 oil major are down about 50%.

    Can Shell’s share price recover? I think it’s possible. That said, there are a few things that need to happen for the FTSE 100 oil stock to rebound. 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.

    Outlook darkens for North Sea oil and gas industry

    Outlook darkens for North Sea oil and gas industry

    TWO oil and gas majors provided votes of confidence in the North Sea last week but these may only provide cold comfort as the outlook for the sector gets ever bleaker.

    On Tuesday BP underlined its belief in the exploration potential of the North Sea as it announced that it had returned to profit in the third quarter.

    The giant included its successful bid for new North Sea exploration licences in a list of highlights for the three months to 30 September. 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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