RDSA.L - Royal Dutch Shell plc

LSE - LSE Delayed Price. Currency in GBp
1,312.20
+7.60 (+0.58%)
At close: 4:35PM BST
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Previous Close1,304.60
Open1,308.00
Bid1,300.20 x 0
Ask1,300.60 x 0
Day's Range1,292.80 - 1,323.40
52 Week Range3.05 - 2,636.00
Volume4,834,959
Avg. Volume13,649,489
Market Cap100.068B
Beta (5Y Monthly)0.85
PE Ratio (TTM)10.73
EPS (TTM)122.30
Earnings DateN/A
Forward Dividend & Yield0.51 (3.94%)
Ex-Dividend DateMay 14, 2020
1y Target EstN/A
  • Italy prosecutor says Eni, Shell aware of bribes in Nigeria case
    Reuters

    Italy prosecutor says Eni, Shell aware of bribes in Nigeria case

    Oil majors Eni <ENI.MI> and Royal Dutch Shell <RDSa.L> were aware that most of the money they spent to buy a Nigerian oilfield in 2011 would go in corrupt payments to politicians and officials, a prosecutor said on Thursday. Italy's Eni and Shell, who deny any wrongdoing, bought the OPL 245 offshore field in 2011 for about $1.3 billion from Malabu, a company owned by former Nigerian oil minister Dan Etete.

  • Reuters

    Thrown for a LOOP: Big U.S. offshore port's crude exports in surprising surge

    Crude exports from the Louisiana Offshore Oil Port (LOOP) are hitting a record high even as U.S. crude exports have fallen as the coronavirus pandemic has chopped worldwide fuel demand. Oil majors Royal Dutch Shell Plc and BP Plc are the main winners from rising LOOP exports, because they pump most of the mid-sour crude exported from the terminal. LOOP largely ships out Mars crude, a medium-sour grade of oil produced from the Mars platform, a joint venture of majority-owner Shell and BP, located about 130 miles (210 km) off the coast of New Orleans.

  • Coronavirus Takes a Toll on Shell Imposing $15-$22B Write-Offs
    Zacks

    Coronavirus Takes a Toll on Shell Imposing $15-$22B Write-Offs

    Shell (RDS.A) expects second-quarter LNG liquefaction volumes to shrink to 8.1-8.5 million tonnes from its prior-year quarterly output of 8.66 million tonnes.

  • Supermajors Are Flocking To This Booming Oil Frontier
    Oilprice.com

    Supermajors Are Flocking To This Booming Oil Frontier

    Supermajors are flocking to this little-known oil frontier, and many investors still don’t know it exists

  • ‘We're seeing reservations start to come back, particularly in air’: AAA Northeast
    Yahoo Finance Video

    ‘We're seeing reservations start to come back, particularly in air’: AAA Northeast

    AAA Northeast’s Robert Sinclair joins The First trade to discuss the difficulties surrounding the summer travel businesses and what these businesses have done to adapt.

  • Shell secures biogas supply as part low-carbon shift
    Reuters

    Shell secures biogas supply as part low-carbon shift

    Royal Dutch Shell <RDSa.L> said on Tuesday it has agreed to buy renewable gas, known as biomethane, from Denmark's Nature Energy, in what the smaller company termed the largest deal of its kind. The gas will be supplied to Europe's pipeline network from July 1. In April, Shell laid out the oil and gas sector's most extensive strategy yet to reduce greenhouse gas emissions to net zero by 2050.

  • Oil Markets On Edge As Second Wave Hits
    Oilprice.com

    Oil Markets On Edge As Second Wave Hits

    While hopes of a global economic recovery have kept oil markets afloat, the fear of a second wave of COVID cases is threatening to send oil prices lower

  • Reuters

    U.S. report touts Appalachia's coal, gas future despite concerns

    A Trump administration report released on Tuesday touted a strong future for petrochemicals and coal in the U.S. region of Appalachia, despite concerns that supply gluts, waning demand and potential environmental regulation could limit growth in the industries. "There are tremendous opportunities on the horizon for Appalachia because of the shale gas revolution and the region’s abundant coal reserves," Mark Menezes, the U.S. under secretary of energy, told reporters in a call about the report called "The Appalachian Energy and Petrochemical Renaissance." The administration of President Donald Trump has pursued a policy of boosting fossil fuel production while slashing environmental regulations.

  • ‘The days of $100 a barrel oil are over’ as demand continues to wane: Bubba Trading Founder
    Yahoo Finance Video

    ‘The days of $100 a barrel oil are over’ as demand continues to wane: Bubba Trading Founder

    Oil giant Royal Dutch Shell will write down $22 billion in assets over the coronavirus crisis. Bubba Trading Founder Todd Horwitz joins Yahoo Finance’s On The Move panel to assess the state of oil markets.

  • Oil Loses Ground As Traders Take Profits Under The $40 Level
    FX Empire

    Oil Loses Ground As Traders Take Profits Under The $40 Level

    Oil fails to get upside momentum in absence of additional bullish catalysts.

  • Shell Is Taking Up to a $22 Billion Asset Writedown
    Motley Fool

    Shell Is Taking Up to a $22 Billion Asset Writedown

    After lowering its mid- and long-term energy price outlook, the company will take post-tax impairment charges of between $15 billion and $22 billion in the second quarter.

  • Bloomberg

    Shell and BP's Debt Problems Are Getting Worse

    (Bloomberg Opinion) -- The pandemic has now forced both of the U.K.’s oil majors to slash the value of their assets by billions of dollars. This is more than just an accounting issue for BP Plc and Royal Dutch Shell Plc. In the real world, it makes it even harder for them to meet targets for cutting leverage — targets they were already straining to hit.Shell said on Tuesday it would take a $15 billion to $22 billion post-tax impairment charge after cutting its long-term view on oil and gas prices. BP warned earlier in June of potentially $18 billion in impairments.Whereas most non-financial companies assess leverage by comparing some measure of cash flow to net debt, BP and Shell do not. They use “gearing,” or net debt as a percentage of both net debt and equity. That equity number is the wildcard. If it suddenly falls, as happens with impairments, then gearing goes up. Shell says the impact of its impairments will push up gearing by three percentage points.Both BP and Shell are now even further away from their gearing goals. Shell aspires to about 25%. The measure rose steadily throughout 2019, and was 29% in the first quarter of 2020. BP’s gearing was last at 36%, against a target range of 20%-30%.It has always been easy to explain away or divert attention from repeated misses on these targets, as though they don’t really matter. Forthcoming disposal proceeds would bring gearing down, the companies would say. Shell could point to juicy cash returns to shareholders in dividends and buybacks. It’s hard to pay off debt when you’re doing that. On analyst calls, gearing is played down as a “noisy” number and just one among many ways of measuring leverage.But today, debt reduction is becoming important. ​​​The oil price will probably be volatile for some time, so balance sheets need a cushion. Investors have historically afforded a loftier valuation to the less highly geared U.S. oil majors. If gearing targets haven’t worked in the past, are there better ways of holding BP and Shell to account for attacking their debt piles?Shell has reduced its dividend, and analysts expect BP to follow. That will help. But it’s worth considering scrapping the existing gearing targets and starting over. One option would be to fall in with the rest of the corporate pack and measure leverage using cash flow metrics. That would be more helpful in assessing the ability to service debt. It’s probably also more in tune with how these companies manage their finances day to day.If gearing really is the best measure of leverage, then BP and Shell are going to need to set out a credible plan for getting it back down over time. Otherwise pick another type of target — one that can be met.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Shell Warns of Record Writedown as Virus Curbs Oil Demand
    Bloomberg

    Shell Warns of Record Writedown as Virus Curbs Oil Demand

    (Bloomberg) -- Royal Dutch Shell Plc said it will write down between $15 billion and $22 billion in the second quarter, as the company gave investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.The impairment is the firm’s largest since Royal Dutch Petroleum Co. and Shell Transport & Trading Co. merged in 2005, and shows how the pandemic has left no part of the energy giant’s sprawling business unscathed. Shell lost money from pumping oil, fuel sales fell and shipments of everything from liquefied natural gas to petrochemicals suffered.The lockdown-induced slump has permeated through the entire industry, which is reassessing both the value of its assets and longer-term business models. Shell’s large LNG business, which is central to its vision of the future of energy, is seen taking the biggest hit.“We see material downside for second-quarter earnings,” Banco Santander SA analyst Jason Kenney said. Despite a possible weaker performance relative to its peers, the Spanish bank still sees potential upside in the stock, as the bad news was largely anticipated.The drop in demand comes as little surprise. Oil majors’ earnings took a beating in the first quarter, and the companies warned that things would only get worse as the full impact of the pandemic started to be felt in March. Despite a recent rebound in consumption in some of the worst-hit countries, resurgent waves of the virus show the recovery remains fragile.Oil-product sales volumes will be 3.5 million to 4.5 million barrels a day in the second quarter, down from 6.6 million a year earlier, driven by a “significant drop” in demand because of the pandemic, Shell said Tuesday in a statement ahead of quarterly results on July 30.Shell also flagged that its upstream unit, traditionally the company’s core business, will suffer a loss in the second quarter. The division, which is responsible for pumping oil across the world, will take an impairment charge of $4 billion to $6 billion, mostly from North American shale and Brazilian assets.Shell said it has revised its mid- and long-term pricing and refining margin outlook, and expects gearing -- a measure of debt -- to increase by as much as 3% due to the impairment charges.The company’s B shares fell as much as 2.6% and traded down 2.3% at 1,241.40 pence as of 1:26 p.m. in London.Drastic ChangesThe coronavirus has exposed the vulnerability of some of the world’s biggest oil and gas companies, but also given them an opportunity to make investors swallow some unpleasant remedies. Since the pandemic started, Shell and BP Plc have made drastic changes to their businesses, from multibillion-dollar writedowns to big cuts to dividends and jobs.They explained these moves as responses to the dual threats of the lockdown-induced oil slump and the growing pressure to cut carbon emissions. BP has said oil and gas prices will be lower than expected in the coming decades as the virus hurts long-term demand and accelerates the shift to cleaner energy.Second-quarter performance at Shell’s in-house trading unit, which can be a boon when other parts of the business are hurting, is expected to be “below average,” the company said. Still, trading and optimization will offset “significantly lower” refining margins.When Shell reports its results next month, the market will be focused on the company’s outlook and any green-shoot developments, said Jefferies analyst Jason Gammel. The market is getting closer to balancing, he said, and while this isn’t necessarily bullish, “it’s better…it’s bad but it’s better.”The company indicated there was more pain to come from LNG sales, which have a price lag of three to six months compared with oil. The impact of crude prices on LNG margins became “more prominent” from June.Longer term, Shell is optimistic about the LNG market, with Chief Executive Officer Ben van Beurden telling Bloomberg in an interview in May that he expects the market to recover to pre-virus levels.In April, Van Beurden cut the company’s dividend for the first time since the Second World War. Last month, the Anglo-Dutch major said it would be well-placed to boost shareholder payouts again once the oil market recovers.“This morning’s announcement will cement the view that dividends will take longer to get back to their pre-crisis level than originally thought,” said The Share Centre analyst Helal Miah.(Adds analyst comment in 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Health Concerns Hurts Sentiment, Royal Dutch Reveals Writedown
    FX Empire

    Health Concerns Hurts Sentiment, Royal Dutch Reveals Writedown

    Stocks are in the red this morning as a mixture of health concerns and political tensions are weighing on sentiment. The Covid-19 crisis is still hanging over the markets, especially now that some US states are pausing or reversing the reopening of their economies.

  • GlobeNewswire

    Voting Rights and Capital

    Voting Rights and Capital In conformity with the Disclosure Guidance and Transparency Rules, we hereby notify the market of the following: Royal Dutch Shell plc's.

  • Shell to write down as much as $22 bln
    Reuters Videos

    Shell to write down as much as $22 bln

    An update ahead of second quarter results for Royal Dutch Shell have revealed just how big a hit it's taking. The oil giant said on Tuesday (June 30) that it will write $22 billion off the value of its assets. That's after a sharp lowering of its oil and gas price outlook. The decision also comes as the Anglo-Dutch company reviews its operations in a bid to reduce greenhouse gas emissions to net zero by 2050. Shares in Shell, which has a market value of over $126 billion, traded down slightly after the news. The world's largest fuel retailer said it expects a 40% drop in fuel sales in the second quarter from a year earlier. That reflects the major fall in consumption due to global travel restrictions. Shell's writedown mirrors rival BP's move to take up to $17.5 billion off the value of its assets. BP is preparing to shift to low-carbon energy. Shell reduced its expected average benchmark Brent crude oil price for 2020 to $35 a barrel, down from $60. BP cut its long-term Brent forecast to $55 a barrel from a previous $70.

  • Shell to Write Down Up to $22 Billion as Virus Hits Big Oil
    Bloomberg

    Shell to Write Down Up to $22 Billion as Virus Hits Big Oil

    Jun.30 -- Royal Dutch Shell Plc will write down between $15 billion and $22 billion in the second quarter, giving investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil. Laura Hurst reports on "Bloomberg Markets: European Open."

  • Shell Impairments Support Bearish Market
    FX Empire

    Shell Impairments Support Bearish Market

    Dutch British oil and gas major Royal Dutch Shell has presented in its latest update today a very bearish view on the oil and gas market.

  • Shell to cut asset values by up to $22 billion after coronavirus hit
    Reuters

    Shell to cut asset values by up to $22 billion after coronavirus hit

    Royal Dutch Shell <RDSa.L> plans to slash the value of its oil and gas assets by up to $22 billion (18 billion pounds) after the coronavirus crisis hit demand for fuel and weakened the outlook for energy prices, the Anglo-Dutch energy company said on Tuesday. The writedown announcement came after Shell cut its forecast for energy prices into 2023 on expectations that sales will only recover slowly after the pandemic, adding to the company's already bleak longer-term outlook for fossil fuel demand. Shell's move follows similar steps by other major energy companies such as BP <BP.L>, which plans to cut the value of its assets by up to $17.5 billion following the hit to fuel sales from global travel restrictions to prevent the virus spreading.

  • GlobeNewswire

    Shell second quarter 2020 update note

    This is an update to the second quarter 2020 outlook provided in the first quarter results announcement on April 30, 2020. The impacts presented here may vary from the actual results and are subject to finalisation of the second quarter 2020 results. In addition, given the impact of COVID-19 and the ongoing challenging commodity price environment, Shell continues to adapt to ensure the business remains resilient.

  • BHP Overstayed in Petroleum. Time to Exit
    Bloomberg

    BHP Overstayed in Petroleum. Time to Exit

    (Bloomberg Opinion) -- BHP Group’s future can do without hydrocarbons.The world’s largest digger is among the last heavyweights to mix mines with a significant presence in oil, a combination that is becoming harder to justify over the long term. Crude demand will be slow to recover after a pandemic that has kept workers home and jets grounded, and some of that appetite will never come back. Meanwhile, pressure to cut carbon emissions is only increasing. Oil giant BP Plc is the  latest to take a hit, warning it expects impairments and write-offs worth as much as $17.5 billion due to a more gloomy view of what lies ahead. The Big Australian could benefit from a dose of that realism.There is little question that the petroleum division, with assets from Western Australia to the Gulf of Mexico, has generated impressive cash over the years — if you exclude the ill-considered foray into U.S. shale, a $20 billion investment (excluding capital expenditure) much criticized by activist fund Elliott Management Corp. and eventually sold off in 2018. In the six months to December 2019, the unit accounted for about 13% of BHP’s total earnings before interest, tax, depreciation and amortization, notching up an impressive 65% margin. Only iron ore, the group’s top earner, was higher, at 69%. Add in low production costs that cushion the blow of 2020’s lackluster oil prices, and it’s easy to see why putting in more cash is tempting when, as analyst Glyn Lawcock of UBS Group AG points out, the miner has few readily available alternative investments.It’s also true that while the medium-term global appetite for oil looks far less certain than it did, there’s a more appealing argument to be made around fading supply. Indeed, the $115 billion miner’s central expectation last year of demand hitting a high point in the mid-2030s now looks bullish, compared to comments from the likes of Royal Dutch Shell Plc and BP. A peak even in the middle of this decade, BHP’s low-demand scenario, may prove optimistic. On the production side, though, the miner is right to point out that the industry has been investing less, a trend that will only accelerate after a disastrous 2020 and squeeze future production. BHP has estimated ongoing natural field decline at a rate of 3% to 5% per year.None of this means boss Mike Henry and his team can afford to ignore the signs that this year will prove to be a turning point for oil.Diversification has benefits, but operating synergies between oil and mining are debatable — it’s not an accident that while majors sold out of one or the other, none have returned. As a standalone business, the petroleum division might arguably have ventured less enthusiastically into shale. And the risk today is clear: Staying on can turn into overstaying.Here, Henry can reflect on the experience in thermal coal, where BHP woke up too late. Rival Rio Tinto Group offloaded its last coal mine in 2018, wrapping up a process that began in 2013. BHP held on to decent assets, using up tax losses. It’s now trying to retreat just as Anglo American Plc prepares to hive off its South African coal mines, and interest in the dirty fuel has dwindled. Oil has fewer easy substitutes, but it's conceivable that, with significant changes in policy, crude could be left similarly stranded. Accepting the need for an exit from a business that BHP has been in since the 1960s is only the first step, of course. For one, a carve-out in the mold of coal-to-aluminium producer South32 Ltd., which BHP spun off successfully in 2015, is harder to advocate for oil. The move then was about getting more out of sub-scale operations. In petroleum, BHP is not the operator for many of the assets, making such efficiencies harder to accomplish.BHP can begin by reviewing its portfolio, starting with mature assets in Australia. Partner Exxon Mobil Corp. has said that it’s seeking a buyer for its share of the Gippsland Basin oil and gas development in the Bass Strait; a joint sale with BHP has been considered before. Chevron Corp., meanwhile,  has put  its stake in the giant North West Shelf liquefied natural gas venture on the block. That operation, Australia’s largest LNG project, is shifting from processing its own gas to opening services to new suppliers, a business known as tolling — less suited to either Chevron or BHP. The mining giant has  in any event been less enthusiastic about gas than oil.Granted, even that won’t be easy. Australia churns up a decent amount of revenue, and BHP can argue it is better to continue taking cash now, at the risk of selling for less later. Some investors may agree. A similarly short-term view in the Gulf of Mexico could see it adding to the portfolio as distressed rivals are forced out.For newish boss Henry, though, none of those would look like the decisions of a company preparing for a greener future. He has an opportunity to outline the path to net zero emissions when BHP announces full-year results in August. An exit plan for oil would be one decisive step toward that goal.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Saudi Aramco's Dividend Math Doesn't Add Up
    Bloomberg

    Saudi Aramco's Dividend Math Doesn't Add Up

    (Bloomberg Opinion) -- It’s the mother of all payouts.The $75 billion that Saudi Aramco doles out in dividends every year dwarfs what any other listed company gives to shareholders. It’s roughly equivalent to the payouts from Exxon Mobil Corp., Royal Dutch Shell Plc, Chevron Corp., BP Plc, Total SA, PetroChina Co., Eni SpA, Petroleo Brasiliero SA and China Petroleum & Chemical Corp. or Sinopec — put together.That makes Chief Executive Officer Amin Nasser’s promise to continue that level of returns for the next five years an extraordinary vote of confidence in an oil market awash with uncertainties. Saudi Aramco will be prepared to borrow money to ensure that it meets its commitment this year despite oil prices heading into negative territory, he said this month.Running up debts to keep the dividend on track is standard practice for energy companies amid the carnage of 2020’s oil market — except for those, like Shell, which plan to cut payouts altogether. You only want to fund dividends out of borrowings, though, if you’re certain it’ll be a strictly temporary measure. The risk for Aramco is that upholding such a long-term promise to shareholders will bend its entire business out of shape, just when it needs to be especially nimble as crude demand slows and goes into reverse. The core of Aramco’s profitability is its astonishingly low production costs, with operating expenses amounting to not much more than $8 a barrel of oil and equivalent products last year. It’s remarkable how quickly the spending adds up, though. Royalties paid to the Saudi state alone added another $10 a barrel or so, while corporate income tax came to around $19 a barrel and dividends swallowed a further $15. Once all those tolls were paid, Aramco didn’t have a lot of spare change left out of $60-a-barrel oil, let alone the stuff in the $40-a-barrel range it’s selling at the moment.A firm dividend policy is an unusually inflexible cost. Unlike the royalties and income taxes levied as a percentage of Aramco’s revenues and profits, payouts don’t automatically shrink if the price of crude declines. If anything, the burden per barrel rises further when prices and output fall. Perhaps in recognition of this, the Saudi state has from the start agreed to forgo its portion of any payouts to the extent that receiving them would get in the way of Umm-and-Abu investors getting their share(1). That may help maintain a theoretical $75 billion-a-year payout but it makes a nonsense of the idea that all shareholders are equal, not to mention the principle that a dividend policy is some sort of a commitment to future earnings. It’s not clear, either, why a company with this get-out clause would want to take on debt to meet its promised payments, although Aramco’s borrowing costs are essentially identical to those of the Saudi state.Dividends aren’t the end of Aramco’s committed spending. Its purchase of a majority stake in chemicals company Saudi Basic Industries Corp., or Sabic, was completed this month, committing it to about $69 billion of payments over the next six years — even after a restructured plan pushed the bulk of the cash outflow toward the middle of the decade.Then there’s a potential $15 billion investment in Reliance Industries Ltd.’s Jamnagar refinery in India, $20 billion on a separate planned chemicals venture with Sabic, plus Sabic’s own $5 billion a year or so of capital spending which will now sit on Aramco’s balance sheet.Add it all up and the picture is troubling. It’s likely to be several years before operating cash flows rise above $100 billion a year again, even with Sabic’s business consolidated. If Aramco wants to spend three-quarters of that sum on its dividend while laying out $10 billion to $15 billion annually for Sabic’s finance and investment costs, then capex on its core operations will have to fall to a third or less of the $35 billion-odd that the company was spending until recently. For all that executives are confident of their ability to increase production at very low costs, that sort of belt-tightening would make the easiest route to higher profits — lifting crude output from its pre-Covid 10 million daily barrels to around 13 million — extraordinarily difficult to achieve.That path is likely to be constrained, anyway, by several years of weak demand growth as the world recovers from Covid-19. Not to mention the fact that Aramco’s importance to the oil market rests on the proposition that increases in its output, coordinated via OPEC+, should make prices move in the opposite direction, resulting in little by way of net revenue gains for the company.Unlike most of its competitors, Saudi Aramco doesn’t really need to be so focused on dividends. All but 1.5% of its shares are held by the same state that’s hoovering up royalty and tax payments further up the income statement. Riyadh shouldn’t really care how it’s getting paid, as long as it’s getting paid.That dividend policy looks more like a swaggering attempt to hold back the tide of an oil market on the edge of terminal decline. The quicker Aramco acknowledges that, the better equipped it will be to handle the coming turmoil.(1) Americans would call them "Mom-and-Pop shareholders."This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.