- 03 Oct 2006 10:11
Royal Dutch Shell Group is an Integrated oil company. The Royal Dutch/Shell Group of Companies consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products and Chemicals. It also has interests in other industry segments such as Renewables and Hydrogen.
Red = 25 day moving average. Green = 200 day moving average.
- 03 Oct 2006 10:11
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- 06 Oct 2006 13:53
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Reuters - Fri Oct 6, 2006 1:44 PM
Fighting forces Shell to shut Nigeria pump station
ABUJA, Oct 6 (Reuters) - Gun battles between Nigerian militants and troops in the Niger Delta have forced Royal Dutch Shell (RDSa.L: Quote, Profile, Research) to shut a 9,000 barrel-a-day oil pumping station, company sources said on Friday.
The closure of the Ekulama I flow station was the first impact on oil output from a surge in violence in the eastern part of the Niger Delta this week, and adds to almost 500,000 barrels a day shut since February in the west.
"The recent attacks in the east around Cawthorne Channel have led to a further shut-in of 9,000 barrels per day," a Shell source said, asking not to be named.
Fighters with the Movement for the Emancipation of the Niger Delta (MEND) stormed an oil workers' houseboat at Ekulama on Wednesday in one of two confrontations with the military in which the militants said 17 soldiers were killed.
Fighting continued in the area on Thursday and industry sources said there were 35 militant speed boats full of fighters cruising around the creeks.
These sources said the militants had been shooting rifles at pipelines, but a MEND spokesman said the pipelines were damaged by fire from the military's helicopter gunship.
"The helicopter gunship punctured most of the pipelines in several areas causing crude oil and possibly refined products to seep out. That chopper fires .50 calibre rounds," the spokesman said in an email to Reuters.
- 22 Oct 2014 09:05
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Shell announces Gabon deep-water gas discovery
The Hague, 22 October 2014. Shell today announced a frontier exploration discovery offshore Gabon, West Africa. The well Leopard-1 encountered a substantial gas column with around 200 metres net gas pay in a pre-salt reservoir.
Leopard-1 is located around 145 kilometres off the Gabonese coast, west of Gamba. It was drilled in water 2,110 metres deep to a total vertical depth of 5,063 metres. Shell and partners are planning to undertake an appraisal programme to further determine the resource volumes.
"Shell has been exploring in Gabon for over 50 years. This latest deep water discovery is a testament to the innovation of our explorers in pursuing new plays, and application of our global sub-surface expertise," said Andy Brown, Shell Upstream International Director. "We are proud to be sharing this success with CNOOC Limited, our partner in the licence."
Leopard-1 was drilled in license BCD10, operated by Shell (75%). Second partner in the venture is CNOOC Limited (25%).
This frontier discovery follows recent deep water exploration successes in the heartlands for Shell Exploration in the Gulf of Mexico and Malaysia.
Note to editors
Frontier is one of the themes that Shell distinguishes in its exploration portfolio which covers under explored basins. Pre-salt means that the target reservoir is situated below a layer of salt which is a very good seal for hydrocarbons.
- 09 Jun 2015 08:29
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1800p looking likely, imo.
- 07 Jul 2015 08:41
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Same here, as with RDSB. Still on my watchlist and hopefully cash ready for the turn around.
- 30 Jul 2015 08:20
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Shell says its Q2 current cost of supplies (CCS) earnings came in at $3.4bn, from $5.1bn previously. Total dividends distributed in the quarter were $3.0bn. A Q2 dividend of $0.47 per share and $0.94 per American Depositary Share were announced.
During the quarter, the Malaysia LNG Dua Joint Venture Agreement ("JVA") expired and Shell transferred its 15% shareholding to Petronas, in accordance with the original JVA terms.
As part of its global exploration programme, Shell added new acreage positions following successful bidding results in the United States, the United Kingdom and Indonesia.
In July, the Browse Joint Venture agreed to enter the front end engineering and design ("FEED") phase for the proposed non-operated Browse Floating Liquefied Natural Gas (FLNG) development (Shell interest 27%), using Shell FLNG technology. The proposed development is expected to deliver around 12 million tonnes per annum of LNG.
In July, Shell announced the final investment decision ("FID") to advance the Appomattox deep-water development (Shell interest 79%) in the United States. The Appomattox platform will be Shell's seventh 4-column host in the Gulf of Mexico. The Appomattox development will initially produce from the Appomattox and Vicksburg fields, with average peak production estimated to reach approximately 175 thousand barrels of oil equivalent per day (boe/d).
In July, Shell announced that it reached an agreement with Kinder Morgan, Inc. for the sale of Shell's entire 49% equity interest in Elba Liquefaction Company, LLC, the owner of the Elba Liquefaction Project, which is proposed to be constructed and operated at the existing Elba Island LNG Terminal in the United States.
In France, Shell received a binding offer of euro 464 million ($529 million) from DCC Energy for its Butagaz Liquefied Petroleum Gas business. The transaction, subject to regulatory approvals following staff consultations, is expected to complete in 2015.
In the United States, Shell Midstream Partners, L.P. announced the execution of a purchase and sale agreement to acquire additional interests in Zydeco Pipeline Company and Colonial Pipeline Company for $448 million from Shell Pipeline Company. The acquisition will increase Shell Midstream Partners' ownership interest in Zydeco from 43.0% to 62.5% and in Colonial from 1.612% to 3.0%.
Also in the United States, Shell Pipeline Company sold its 100% interest in the Port Arthur Products Station and Shell Ex Facility, known as PAPS, to Colonial Pipeline Company.
In July, Shell Midstream Partners, L.P. completed the acquisition of a 36% equity interest in Poseidon Oil Pipeline Company for $350 million from Equilon Enterprises LLC, a subsidiary of Shell Oil Products US.
- 02 Sep 2015 18:38
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Having said earlier that 1800p was looking likely and now seeing it has reached 1600p, I wonder if the fall continues whether the divi might be trimmed accordingly.
- 02 Sep 2015 21:10
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I'm on RDSB as I believer RDSA has a dividend with-holding tax on it.
We know the dividend's protected for a while as Shell has publicly stated this. I guess they will try and hang on it as long as they can. and that depends on the price of oil and gas.
I'd say it's safe as I think the over-capacity in the industry will get dealt with over the next year.
- 14 Sep 2015 16:33
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Barclays note from the RDS conference:
"Paying an attractive dividend is the main priority
Shell are planning for what could be a prolonged downturn of the oil price and as a result are pulling a number of financial levers to pay what is an attractive dividend and the main priority of the business. This includes cuts to capital spend while maintaining a sensible and affordable investment program, cuts to operating costs and asset sales. CEO Ben Van Beurden was clear that should the macro environment further deteriorate, Shell would further cut capex through project postponement to protect the dividend. The priority of cash flow has not changed since the announcement of the BG transaction and Shell re-iterated its commitment to maintaining its 2015 dividend and paying at least the same dividend in 2016. As free cash flow increases, the company still intends to buy back at least $25bn of shares before the end of decade.
Will not walk away from the BG transaction
Shell see BG as a springboard into a simpler more profitable company and were very clear that the company would not walk away from the deal because of the move in spot prices. The deal is still expected to close in early 2016 and CEO Ben Van Beurden was confident that outstanding regulatory approval would be received in China and Australia. Shell re-iterated it sees strong strategic rationale for the deal with the combined with the company offering a $10/bl reduction in upstream breakeven, greater free cash flow protection of the dividend and providing management with a chance to re-assess the long-term project opportunity set.
Downstream business is delivering
Over the last 12 months, the downstream business has generated $13bn of cash flow with returns in excess of 15%. This is above Shell’s through-cycle targets and has to some extent helped the company mitigate the impact of a lower oil price this year. While part of this improvement relates to higher industry margins at a lower oil price much also relates to self-help measures from Shell including non-core disposals, cost reduction plans and greater operational uptime. During the presentation, CEO Ben Van Beurden indicated that there was more to come from the downstream division over the rest of this year and 2016.
Only the most attractive and affordable projects will go ahead
In what could be a prolonged period of low oil prices, Shell is implementing a rigorous appraisal process and one that allows only the very best projects to go ahead as long as they are affordable according to the prevailing environment. Shell sees opportunities in its portfolio with projects with an NPV breakeven less than $50/bl and plans against an NPV breakeven at less than $70/bl. The company gave the example of the Appomattox deepwater project in the Gulf of Mexico where Shell were able to reduced costs by 20% between FEED and project sanction to achieve an NPV breakeven of $55/bl.
Investment community too focused on spot LNG prices
Only 10-15% of Shell’s LNG sales are sold on the ‘spot’ LNG markets with the remainder sold on much longer dated contracts linked predominantly to the oil price. Although contracts pricing renegotiations typically take place every 3-6 years, Shell do not expect a dramatic shift in pricing formulae and rather small incremental changes. CEO Ben Van Beurden indicated his view that the oil link in contracts is likely to stay in Asia with any links to Henry Hub likely resulting in too much seasonal price volatility for buyers particularly during the winter months."
- 16 Sep 2015 13:15
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- 28 Sep 2015 08:08
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Shell said the Burger J exploration well, at Alaska's Chukchi Sea, will be sealed and abandoned in accordance with US regulations after indications of oil and gas were decided insufficient to warrant further exploration.
"Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska," it said.
"The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell's Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results."
Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea. Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.
- 28 Oct 2015 08:59
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Shell to halt Carmon Creek in situ project
The Hague - 27 October 2015. Royal Dutch Shell plc (Shell) today announces that the company will not continue construction of the 80,000 barrel per day Carmon Creek thermal in situ project located in Alberta, Canada.
Shell originally sanctioned the project in October 2013 and announced in March 2015 that the project would be re-phased to take advantage of the market downturn to optimise design and retender certain contracts. After careful review of the potential design options, updated costs, and the companys capital priorities, Shells view is that the project does not rank in its portfolio at this time. This decision reflects current uncertainties, including the lack of infrastructure to move Canadian crude oil to global commodity markets.
We are making changes to Shells portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell, said Chief Executive Officer, Ben van Beurden.
Shell will retain the Carmon Creek leases and preserve some equipment while continuing to study the options for this asset. The company expects to take net impairment, contract provision, and redundancy and restructuring charges of some $2 billion as a result of this decision with the third quarter 2015 results, which will be included as an identified item. The project SEC Proved Reserves estimated at 418 million barrels bitumen at end 2014 will be de-booked and the project estimated recoverable petroleum resources will be classified as Contingent Resources. Carmon Creek is 100% Shell owned.
- 29 Oct 2015 07:50
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Royal Dutch Shell (RDSA) said its Q3 earnings, on a current cost of supplies (CCS) basis, were a loss of USD6.1bn, from a profit of USD5.3bn a year earlier.
Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were USD3.0bn, of which USD0.7bn were settled under the Scrip Dividend Programme. No shares were bought back during Q3.
Gearing at the end of the third quarter 2015 was 12.7%.
A third quarter 2015 dividend has been announced of USD0.47 a share and USD0.94 per American Depositary Share (ADS).
CEO Ben van Beurden commented:
"Shell's integrated business and our performance drive are helping to mitigate the impact of low oil prices on the bottom line, in what is a difficult environment for the industry today.
"We continue to improve the operational performance of our assets, and production volumes are up. Costs are falling across the company and Shell's performance drive is delivering at the bottom line.
"Our financial framework is highly competitive, with balance sheet gearing at 12.7%, similar to year ago levels, despite a halving of oil prices. Both net investments and dividends have been covered by operating cash flow over the last year, when oil prices have averaged $60 per barrel.
"While our cash flow and our operating performance in the quarter were strong, the headline numbers were reporting today include substantial charges.
"These charges reflect both a lower oil and gas price outlook and the firm steps we are taking to review and reduce Shell's longer-term option set.
"We have halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek in-situ oil project in Canada.
"These are difficult, but impactful decisions. I am determined that Shell will become a more focused and competitive company as a result.
"The BG deal, which remains on track for completion in early 2016, is a springboard to focus Shell into fewer and more profitable themes, especially deep water and integrated gas."
- 09 Nov 2015 17:11
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Ex-divi thurs 12th Nov (0.47¢)
- 21 Dec 2015 08:14
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Shell and BG (BG) said, following satisfaction of the final pre-condition to the recommended combination and with the unanimous approval of both boards, the latter company is seeking the approval of the High Court to publish its scheme document and convene the related shareholder meetings.
Following High Court approval, the scheme document will be published as soon as practicable, which is currently expected to be on 22 December 2015.
Subject to approval of the UK Listing Authority, the Shell shareholder circular and prospectus are expected to be published at the same time as the scheme document.
Shell and BG shareholder meetings to approve the recommended combination are expected to be convened on 27 and 28 January 2016, respectively. Full details will be included in the shareholder documentation
- 20 Jan 2016 13:04
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Shell said FY 2015 earnings on a CCS basis, excluding identified items, are expected to fall in the range USD10.4bn-USD10.7bn. It said identified items for the 12-month period are seen as a net charge of USD6.8bn-USD7.0bn.
Production for Q4 was 3.0bn boe/d, and for the FY was 2.9m boe/d.
CEO Ben van Beurden was pleased with Shell's operating performance in 2015, and the momentum in the company to reduce costs and to improve competitiveness.
"The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns.
"Shell's drive to improve competitive performance is delivering at the bottom line. Operating costs have reduced by $4 billion, or around 10% in 2015, and the company expects Shells costs to fall again in 2016, by a further $3 billion.
"Synergies from the BG combination will be in addition to that. Together, these actions will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies, as streamlining and integration of the two companies continue.
"Shell is taking impactful steps to refocus and reduce capital spending. Shell's capital investment in 2015 is expected to be $29 billion, an $8 billion or over 20% reduction from 2014 levels.
"This has been delivered by efficiency improvements and more selectivity on new investments. Capital investment for Shell and BG combined in 2016 is currently expected to be $33 billion, around a 45% reduction from combined spending, which peaked in 2013. Flexibility for further reductions is available and will be utilised should conditions warrant that. As a result of the above actions we have retained a strong balance sheet position at around 14% gearing.
"Asset sales for 2014 and 2015 now exceed $20 billion, well above the original plan of $15 billion set out in early 2014. Preparations are well advanced for $30 billion of asset sales in 2016-18, assuming the successful completion of the combination.
"In addition to divestments, Shell has taken impactful decisions in 2015 to reduce longer term, low return upstream positions, such as the exit from Alaska exploration for the foreseeable future, cancellation of Carmon Creek heavy oil project, and exit from shales positions in multiple countries.
"Shells fourth quarter and full year 2015 results and fourth quarter 2015 dividend are scheduled to be announced on 4 February 2016. A Shell General Meeting in relation to the proposed combination is scheduled for 27 January 2016 in The Hague, The Netherlands.
- 20 Jan 2016 15:36
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i don't know the yield, but as a top class company that is still turning in A1 results from the wrong sector, this could be a good safety stock
- 02 Feb 2016 09:53
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Citigroup today upgrades its investment rating on Royal Dutch Shell (LON:RDSA) to buy (from neutral) and left its price target at 1775p.
- 04 Feb 2016 08:45
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Shell said its FY 2015 earnings on a current cost of supplies (CCS) CCS basis were USD3.8bn, from USD19.0bn in 2014. Its Q4 2015 CCS earnings basis were USD1.8bn, from USD4.2bn in the same period in 2014.
CEO Ben van Beurden commented:
"The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company, and improving shareholder returns.
"We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices.
"As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies.
"In 2015, we significantly curtailed spending by reducing the number of new investment decisions and designing lower-cost development solutions.
"For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria.
"Operating costs and capital investment have been reduced by a total of $12.5 billion as compared to 2014, and we expect further reductions in 2016.
"As a result of our actions in 2015, we have retained a strong balance sheet position, with 14% gearing. Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.
"Shell's dividends for 2015 were $1.88 per share, and are expected to be at least $1.88 per share in 2016, as previously announced."
- Fourth quarter 2015 CCS earnings excluding identified items (see page 5) were $1.8 billion compared with $3.3 billion for the fourth quarter of 2014, a decrease of 44%. Fourth quarter 2015 earnings were positively impacted by non-cash net gains of some $0.3 billion related to currency exchange rate effects on deferred tax positions. Full year 2015 CCS earnings excluding identified items were $10.7 billion compared with $22.6 billion in 2014.
- Compared with the fourth quarter 2014, CCS earnings excluding identified items benefited from continued strong Downstream results reflecting steps taken by the company to improve financial performance. In Upstream, earnings were impacted by the significant decline in oil and gas prices, partly offset by lower costs. Contributions from integrated gas were higher mainly as a result of improved trading performance and the effect of the strengthening of the Australian dollar on deferred tax positions.
- Fourth quarter 2015 basic CCS earnings per share excluding identified items decreased by 44% versus the fourth quarter 2014. Full year 2015 basic CCS earnings per share excluding identified items decreased by 53% versus 2014.
- Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $3.0 billion, of which $1.2 billion were settled under the Scrip Dividend Programme. No shares were bought back during the fourth quarter.
- Gearing at the end of 2015 was 14.0% compared with 12.2% at the end of 2014.
- A fourth quarter 2015 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (ADS).
- Royal Dutch Shell is expected to announce a dividend of $0.47 per ordinary share and $0.94 per ADS in respect of the first quarter 2016.
- 04 Feb 2016 13:14
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Royal Dutch Shell (RDS) has declared an interim dividend in respect of the fourth quarter of 2015 of US$0.47 per A ordinary share (A Share) and B ordinary share (B Share), equal to the US dollar dividend for the same quarter last year.
The Board expects that the first quarter 2016 interim dividend will be US$0.47, equal to the US dollar dividend for the same quarter in the previous year. The first quarter 2016 interim dividend is scheduled to be announced on May 4, 2016.