Shell Plc (SHEL)

[DewDiligence]

CEO, Peter Voser will retire in 1H14; 1Q13 results ok:

#msg-87481837

Voser’s retirement does not change Shell’s LT (2017-2018) goals set forth in #msg-84459871.

[nWo]

I agree, I know there is some near term negatives it seems on Shell. However longterm this stock is clearly a winner, I don't plan on selling for decades, does anyone think they may increase the dividend in May? I think last year they did at this time they gave a 2 cent increase if I am not mistaken. By the way I am still long TEVA as well.

[nWo]

Thanks, I think we got a great stock here, and yeah I see everyday the company is buying back B Shares. Best of luck to us all.

[johnsyn]

welcome nwo. just in time- buyback of shares there http://seekingalpha.com/news-article/6296251-royal-dutch-shell-plc-buyback-of-own-shares

[DewDiligence]

WSJ on the incessant delays of the Kashagan Caspian Sea project:

#msg-87049702

[DewDiligence]

Welcome aboard. I think you’ll do fine with Shell if your investment horizon is measured in years rather than months, weeks, or days.

I’ve posted extensively about Shell on #board-15427. Regards, Dew

[nWo]

Just bought in this stock RDS.B at 66.05 on Friday, a great solid company with a superior dividend thats covered quite nicely. Market is beating down this stock WAY to much.

[johnsyn]

7:57 AM Royal Dutch Shell (RDS.A, RDS.B) says it plans to sell its only oil refinery in Australia, or it could convert the 120K bbl/day refinery to a fuel-import terminal if it can't find a buyer. The Geelong plant, near Melbourne, supplies about half of Victoria state's fuel. Australia's refineries are grappling with competition from newer Asian facilities, higher global oil prices, and rising labor and financing costs.

[johnsyn]

that is true, all the more excuse to not irk the muslims and shed the Israeli connection

[DewDiligence]

Shell was thinking about divesting Woodside anyhow.

[johnsyn]

12:37 PM The move by Australia's Woodside Petroleum to acquire a controlling stake in Israel's biggest natural gas field has presented its minority owner Royal Dutch Shell (RDS.A) with a potential political challenge keeping its Arabic partners on its side. Analysts say Shell may look offload its 23% interest in Woodside, valued at ~$7B; a sale also could provide much-needed capital for Shell’s big Australian development projects.

[DewDiligence]

Webcast slides from 11/15/12 Investor Day on LNG (better late then never :- )):

http://www.shell.com/global/aboutshell/investor/news-and-library/archived-presentations/2012-presentations/asia-pac-roundtable-presentation-15112012.html#textwithimage_6

The webcast itself is long (1.75 hours) but is worth a listen, particularly for Shell shareholders; it covers several pertinent issues affecting the LNG market today in the next two decades. (Podcast: http://cache.cantos.com/mp3/she3-0001/management_day_2012_full_version.mp3 .)

[DewDiligence]

Shell 4Q12 CC slides:

http://cache.cantos.com/webcast/static/ec2/predeploy/c3/_c3a812c8-1694-3050-1887-496d51cf04ef_/pdficonshell.gif

[DewDiligence]

Shell throws in the towel on 2013 Arctic drilling: #msg-85093540.

[DewDiligence]

Shell's PR on long-term outlook: #msg-84459871.

[johnsyn]

9:44 AM Royal Dutch Shell (RDS.A) says it will increase capacity at its Singapore petrochemical plant to meet rising Asian demand for specialized materials used in the automotive and furniture industries. The upgrade will increase the plant's capacity to produce polyols - industrial chemicals used to make high-quality foams - by more than 100K metric tons/year to 360K.

[johnsyn]

LOL. Author is just a regular private investor trying to make a name for himself, I guess. Gee, who would have thought one should think of Shell as a LT holding, ignore last quarter's O&G low prices cutting into their profit margins, with all they have going on. At least the guy didn't say short it.

[DewDiligence]

A reasonable discussion of Shell’s quarter—and investors’ response—from SA (of all places):

http://seekingalpha.com/article/1150771-shell-management-believes-they-delivered-results-wall-street-doesn-t

The basic idea, expressed in a verbose manner, is that Shell is a good LT holding and one shouldn't pay undue attention to individual quarters.

[johnsyn]

thanks, Seeking Alpha I believe gave a transcript of it too. We sure took a little fall today and recovered.

[DewDiligence]

Shell’s own PR on 4Q12 results:

http://s09.static-shell.com/content/dam/shell-new/local/corporate/corporate/downloads/quarterly-results/2012/q4/q4-2012-qra.pdf

[johnsyn]

3:16 AM Shell (RDS.A): Q4 net profit +13% to $7.29B; adjusted profit +15.2% to $5.58B vs consensus of $6.16B. EPS $1.06 vs $1.04 last year. Revenues +2.1% to $118.05B. Oil and gas output +3% to 3.41M barrels of oil equivalent per day, in line. Forecasts 2013 capex of $33B despite "headwinds" and an "uncertain" economic outlook in some of markets. Ups Q4 dividend to $0.43/share and Q1 payout to $0.45.

[DewDiligence]

As long as they don't bid for any assets in Argentina or Ecuador, it's ok by me :- )

p.s. HES action past 2 days is exciting.

[johnsyn]

7:58 AM Shell (RDS.A) is going into liquefied natural gas in a big way, and reports say it is likely to snap up Repsol's (REPYY.PK) assets in Peru, Canada and Trinidad and Tobago. Repsol has said it wants to sell assets in Canada where it controls 75% of the Canaport LNG terminal, its 20% stake and sole off-taker position in the 4.4M metric tons/year Peru LNG, and its holding in Trinidad and Tobago’s Atlantic LNG

[johnsyn]

good to know. wasn't aware someone actually was authorized already.

So far only one project, Cheniere Energy Inc.'s LNG -0.62% Louisiana terminal, is authorized for exports and is under construction.

[DewDiligence]

More on LNG-export story: #msg-83911634.

[johnsyn]

And it looks like Shell will build U.S. LNG plant this year:
4:32 PM Shell (RDS.A, RDS.B) CEO Peter Voser says he hopes the U.S. will restrain exports of liquefied natural gas at ~50M metric tons/year, at least initially, to better help the country re-industrialize. Shell may look to build a liquefaction facility in the U.S., and "the next 12 months on this are quite crucial," Voser says

[DewDiligence]

More on the same story: #msg-83827917.

[johnsyn]

12:29 PM Ukraine will take a first big step away from dependency on Russian gas supplies today when it seals a $10B shale gas deal with Royal Dutch Shell (RDS.A, RDS.B) to be signed at Davos, Reuters reports. Ukraine is said to have Europe's third-largest shale gas reserves at 42T cu. ft.

[johnsyn]

6:54 PM Motiva Enterprises, the JV between Royal Dutch Shell (RDS.A) and Saudi Arabian Oil, reportedly has restarted the expansion segment of its Port Arthur, Tex., refinery after months of setbacks. The refinery will run the segment at 200K-225K bbl/day for three to four weeks before ramping up to its full capacity of 325K. The companies spent $10B to expand the refinery to 600K bbl/day, making it the largest refinery in the U.S.

[johnsyn]

8:46 AM Royal Dutch Shell (RDS.A, RDS.B), a major supplier of lubricants in China, opens the company's largest grease plant in China. The plant, based in Zhuhai, can produce 30K metric tons of grease a year, and can be expanded to 40K. Shell now has 18 grease plants worldwide, including 10 in Asia.

[johnsyn]

I can imagine!

[DewDiligence]

Shell’s woes in the Arctic could lead to another drilling moratorium, consultants say:

#msg-83592704

[johnsyn]

6:45 PM, Jan 07. Royal Dutch Shell (RDS.A, RDS.B) and Statoil (STO) are racing to build the world's first subsea gas compression unit, a key building block in a drive to make platform-free offshore production a reality within a decade. If the technology succeeds, Arctic developments could be the main beneficiaries and could mitigate some of the concern over drilling in harsh environments

[johnsyn]

8:08 AM Shell's (RDS.A) attempts to drill in the Arctic have suffered blow after one of its two Alaska drilling rigs, the Kulluk, last night ran aground on rocks off the southeast side of Sitkalidak Island in the Gulf of Alaska while trying to avoid the worst of a severe storm.

[DewDiligence]

(For archival purposes)—Shell’s 3Q12 PR and webcast slides…

Press release:
http://www.shell.com/home/content/investor/financial_information/quarterlyresults/2012/q3/

Webcast slides (14 pages):
http://www.shell.com/home/content/investor/news_and_library/2012_presentations/q3_2012_presentations_01112012.html#subtitle_4

[DewDiligence]

Shell’s PR and webcast slides from 11/15/12 “Integrated Gas/Asia Pacific” investor presentation…

Press release:
http://www.shell.com/home/content/investor/news_and_library/2012_presentations/asia_pac_roundtable_presentation_15112012.html#subtitle_1

Webcast slides (64 pages):
http://www.shell.com/home/content/investor/news_and_library/2012_presentations/asia_pac_roundtable_presentation_15112012.html#subtitle_4

[DewDiligence]

Shell is mulling more Asian LNG projects akin to the $10B Prelude vessel - "the largest object man has ever built that floats"…

NYT article from November on Prelude project: #msg-82241687.

[johnsyn]

11:54 AM Royal Dutch Shell (RDS.A) (RDS.B) announced the pound sterling and euro equivalent dividend payment of $0.43/share for Class A and Class B shares. The board declares dividend on Class A and B shares will be paid in euro at €0.3333/share or in pound at £0.2686/share. The dividend will be payable on Dec. 20, to shareholders on record of Nov. 16.

[johnsyn]

3:57 PM In a symbol of anticipated soaring Asian gas demand in coming decades, Royal Dutch Shell (RDS.A, RDS.B) will move the headquarters of its gas business to Singapore from Europe. Shell is mulling more Asian LNG projects akin to the $10B Prelude vessel - "the largest object man has ever built that floats" - and is considering projects which could almost double its current capacity to produce the fuel.

[johnsyn]

:38 AM Total (TOT) +1.4% premarket after Deutsche Bank upgrades shares to Buy, based on an attractive valuation "ahead of the broadest and potentially most exciting 2013 exploration program among the European majors." The firm also cites a secure 6%-plus dividend yield offering absolute support. Royal Dutch Shell (RDS.A, RDS.B) is cut to Hold.

[Timothy Smith]

Looking it up again now but I agree it can't be right. I don't recall where I was getting my data but pulled this up tonight.

Downstream operations, which now also includes the chemicals business, generates a third of Shell's profits worldwide and is known its global network of more than 40,000 petrol stations and its 47 oil refineries.

http://en.wikipedia.org/wiki/Royal_Dutch_Shell#Business_groupings

[DewDiligence]

Shell derives almost 90% of its revenues from refining activities.

Who said that? Can’t possibly be true.

[Timothy Smith]

The company has shown remarkable growth in revenues over the years. At the end of 2009, revenues stood at just above $285 billion, which grew to over $484 billion by the end of 2011. For the trailing twelve months, the company has recorded revenue of over $478 billion, and basic EPS of $8.46.

Furthermore, Shell generates massive amounts of cash flows from its operations. Over the past twelve months, the company has generated over $42.6 billion in operating cash flows. However, a substantial amount of its cash flows is spent on capital expenditures. Shell has spent over $31 billion on capital expenditures during the past twelve months.

As a result, trailing twelve months free cash flows for the company are $10.8 billion. However, Shell free cash flows are adequate to cover its dividend payments. The company paid 7.774 billion in cash dividends during the previous twelve months, which takes its payout ratio to 71.5%.

At the moment, the company pays a quarterly dividend of $0.86 per ADS, yielding 5.15%. Shell derives almost 90% of its revenues from refining activities. At the moment, the margins are slim in the refining business.

However, a low exposure to the oil prices should provide stability to its revenues. Furthermore, the stock is trading at a P/E ratio of 7.9, compared to the industry average of 9.6.

[johnsyn]

9:59 AM Two aboriginal groups lose their court bid to block a ruling on Shell’s (RDS.A, RDS.B) Jackpine oilsands mine expansion in Alberta. They had asked the Alberta Court of Appeal to force a regulatory board to make a ruling on whether they had been adequately consulted on the project, but the court said the board was within its rights to refuse to deal with consultation.

[johnsyn]

8:42 AM Royal Dutch Shell (RDS.A, RDS.B) plans to upgrade its petrochemical plant in Singapore to meet rising demand for ethylene in Asia. The upgrade will increase the plant's capacity to produce olefins and aromatics used to make plastic, paint and other products by more than 20%. Shell didn't say how much the expansion would cost.

[johnsyn]

10:29 AM Royal Dutch Shell (RDS.A -1.5%) plans to invest more than $20B by 2015 to develop liquified natural gas and gas-to-liquids production, areas whose earnings reached $9B over the past year. Shell has 22M tons/year of LNG on stream, is building 7M tons/year of new LNG capacity in Australia, and seeks to add more than 20M tons/year of further LNG options in Australia, Indonesia and North America.

[johnsyn]

5:24 PM Murphy Oil (MUR) agrees to purchase interests in Shell lands and take over as operator of Shell assets in the Seal Lake area of Alberta; the purchase price was not disclosed. The transaction brings MUR's acreage in the area to more than 331K net acres with total production of ~9K boe/day.

[DewDiligence]

Gorgon LNG project is now 50% complete and is on track for startup in 2014:

#msg-81422415

[johnsyn]

9:05 AM Royal Dutch Shell (RDS.A) shuts its Imo River oil pipeline in Nigeria due to damage caused by thieves and deferred 25K boe/day of production, the latest in a growing list of production problems for Africa's biggest oil exporter. Exxon (XOM) said over the weekend it had shut a pipeline off the coast of Nigeria's Akwa Ibom state after an oil leak but didn't specify the cause of the spill.

[johnsyn]

8:42 AM Royal Dutch Shell's (RDS.A, RDS.B) Nigerian unit sells its 30% interest in oil mining lease 30 in the Niger Delta to Shoreline Natural Resources for $567M. The divested fields produced ~35K bbl/day of oil and condensate.