Shell Plc (SHEL)

[DewDiligence]

WSJ skeptical of Shell’s plans in power:

https://www.wsj.com/articles/oil-giant-shells-pivot-to-electricity-could-bring-investors-less-sizzle-11563015600

Oil giant Royal Dutch Shell aims to become the world’s largest electricity company without necessarily generating very much power.

…Hoping to capture the most profitable part of the business, Shell’s power strategy will be light on assets and focus on trading electricity generated by others.

Isn’t this what Enron was doing?

See #msg-139680223 for related story.

[DewDiligence]

Shell Investor Day items…

PR:
https://www.shell.com/media/news-and-media-releases/2019/management-day-2019-shell-strongly-positioned-for-the-future-of-energy.html

Webcast slides:
https://www.shell.com/investors/news-and-media-releases/investor-presentations/2019-investor-presentations/management-day-2019/_jcr_content/par/textimage_af3b.stream/1559638644079/9400a0105d2ef50269b7c002ac8140263aff0182/shell-management-day-2019-webcast-presentation-slides.pdf

Transcript of prepared remarks:
https://www.shell.com/investors/news-and-media-releases/investor-presentations/2019-investor-presentations/management-day-2019/_jcr_content/par/textimage_af3b.stream/1559659931342/0855f5b604fbc37282a682a54fa55b89ea0c22ac/shell-management-day-2019-webcast-presentation-transcript.pdf

[farml1234]

anyone know anything about this , from another board



Shell and Eni face one of the biggest corruption cases in corporate history over $1.3bn Nigerian oil field
https://www.yahoo.com/news/shell-eni-face-one-biggest-204857834.html

(My comment - remember the Niger Delta Avengers blowing up pipelines? I never did like them or agree with what they were doing but after reading this article now I understand...)


Giant oil companies, offshore accounts, ex-MI6 agents, champagne lunches, a former Nigerian president and allegations of one of the biggest bribes ever paid – the corruption case against Shell and Italy’s Eni filed by prosecutors in Milan over a shady $1.3bn deal for a vast African oil field has all the elements of an espionage thriller.

The latest twists thicken the plot further with a cache of documents seized in a raid on a Swiss financier’s apartment that could be crucial to the case, leaving prosecutors in a race against time to get them to Milan as trial hearings get underway this week.

The Geneva raid uncovered a briefcase belonging to Emeka Obi, a middleman who received millions of dollars from the deal and is in the dock along with several senior Shell and Eni executives.

Inside the briefcase, Swiss prosecutors found a laptop, two Nigerian passports, five sim cards and a hard drive containing 41,000 documents that prosecutors believe could be crucial to the trial playing out on the other side of the Alps.

The stakes are high. Italian prosecutors allege that, of the total $1.3bn fee paid by Shell and Eni for the oil field, $1.1bn went not into the coffers of the Nigerian state but the accounts of former oil minister Dan Etete who then distributed hundreds of millions to well-connected individuals, including former president Goodluck Jonathan.

The amount distributed as bribes is more than the entire Nigerian healthcare budget for 2018, in a country where 87 million people live in extreme poverty – more than any other country on earth.

The Geneva apartment belonged to Olivier Couriol, a former Credit Suisse banker who has been named in two other international corruption cases.
(Article continues visit the link above if you are interested...)

[benfrankledger]

$RDS.A The company, on a four-quarter rolling basis, had an operational cash flow of $37 billion while Brent averaged $57 per barrel. Currently, Brent sits at around $76 per barrel or 33% higher. Not only that, the company has a gearing ratio (debt/equity ratio) of 24.7% which is down sequentially from 25%.

[benfrankledger]

$RDS.A Royal Dutch Shell (RDS.A) (NYSE:RDS.B) is a safe high yield investment because we are in the midst of an oil bull run in my opinion.

[DewDiligence]

Shell is serious about the power business: #msg-139680223.

[emailcheque]

deal with the Nam is bad , the damage from yesterday you pay the dammage from tommorow how pay then , spend more buy the houses and they can build earth shaken houses on a saver place and the nam dont have to stop directly and can pay it all , 3 share holders pay 5 miljard(total 15) and the problems are fixt.

[l_winthorpe]

Royal Dutch Shell (RDS.A, RDS.B) cancels a deal to sell its Dansk Shell unit but says its $30B divestment program remains on track to be completed this year.

[benfrankledger]

Solid deal here. Eager to see how things progress year end. 2018 is a bullish cash for oil stocks in my opinion.

[eFinanceMarkets]

$RDS.A Australia will not impose export curbs on east coast LNG producers

Australia will hold back from imposing curbs on exports of liquefied natural gas after producers agreed to put more gas into the domestic market to ease energy shortages on the east coast, Prime Minister Turnbull says.

The agreement follows six months of government pressure on LNG producers, led by Royal Dutch Shell (RDS.A, RDS.B), ConocoPhillips (NYSE:COP), Origin Energy (OTCPK:OGFGF) and Santos (OTCPK:STOSF), who have been blamed for sapping the local market of gas and driving up prices.

Turnbull says the companies promised to fill a supply shortage estimated by the Australian Energy Market Operator at up to 107 petajoules in 2018 and 102 petajoules in 2019.

Australia, the world's no. 2 exporter of LNG, has suffered from blackouts in recent years when energy demand soared and generators were unable to find enough gas to maintain electricity supply.

[eFinanceMarkets]

$RDS.A Colonial Pipeline to reopen key segment; Valero ramping up Texas refineries

Colonial Pipeline says it expects to restart the main distillate line between Houston and Hebert, Tex., tomorrow and the gasoline line between the two points by Tuesday after being shut by Hurricane Harvey.

Colonial’s system east of Lake Charles, La., continues to operate, but the company has warned that deliveries would be affected by reduced supplies.

Colonial is the biggest U.S. refined products system, and feeds markets such as New York, Washington and Atlanta; it is owned by Koch Industries, South Korea’s National Pension Service, Royal Dutch Shell (RDS.A, RDS.B), among others.

Valero Energy (NYSE:VLO) says it is ramping up production at its 293K bbl/day Corpus Christi, Tex., refinery and 89K bbl/day Three Rivers, Tex., refinery; the 225K bbl/day Texas City refinery is operating at full production.
Power reportedly has been restored at Total's (NYSE:TOT) 225K bbl/day Port Arthur, Tex., refinery.

Also, Phillips 66 (NYSE:PSX) is requesting a Jones Act waiver to allow it to use foreign vessels to move crude and other products to and from its 260K bbl/day Alliance refinery in Louisiana.

~5.5% of U.S. Gulf of Mexico oil output, or 96K bbl/day, remains shut due to Harvey, according to the latest figures from the federal Bureau of Safety and Environmental Enforcement.

[dinosaurbob]

Tripled earning report today. Stock should go higher now. I am in for the long term RDS.A & B

[eFinanceMarkets]

$RDS.A Shell +1.2% as Q2 profit triples, cash flow hits highest since oil slump

Royal Dutch Shell (RDS.A, RDS.B) +1.2% premarket after reporting better than expected Q2 earnings on a 23.5% Y/Y revenue increase.

Shell says Q2 profit on a current cost of supplies basis and excluding exceptional items more than tripled to $3.6B from $1B in the same period last year and beating the $3.2B analyst consensus estimate, although the figure was lower than the $3.8B in Q1, reflecting the recent drop in crude prices.

Shell’s downstream business was the strongest engine of growth, with earnings rising 39% Y/Y to $2.5B, profits in the integrated gas division jumped by more than a third to $1.2B, while upstream earnings were just $339M but E&P posted a $1.3B loss in the same period last year; Q2 total oil and gas production was little changed at 3.5M boe/day.

Shell's cash flow from operations rose to $11.3B from $9.5B in Q1, its highest level since the oil price slump started in 2014; gearing dropped to 25.3% from 28.1% a year ago, and net debt fell for a third straight quarter to $66.4B from $72B at the end of Q1, as Shell sold assets from Canada to Australia as part of its $30B divestment program.

“Shell is showing it’s not just about disposals, but the entire business itself that is driving earnings," says BMO analyst Brendan Warn. Shell's "cash flow is very robust and the industry itself is learning to live with oil at these prices."

[oxnous]

Now it looks like oil is going to go below $40 a barrel.

[eFinanceMarkets]

Shell, Qatar Gas sign new five-year LNG deal

Qatar Gas signs a new agreement to deliver as much as to 1.1M metric tons/year of liquefied natural gas to Royal Dutch Shell (RDS.A, RDS.B) over a five-year period.

Qatar Gas says the agreement will begin in January 2019 and be supplied by the Qatargas 4 project, a joint venture between Qatar Petroleum (70%) and Shell (30%).

The LNG is expected to be delivered into either the Dragon LNG terminal in the U.K. or the Gate terminal in the Netherlands; Shell controls 50% of the 4.4M metric tons/year Dragon terminal and has offtake out of the Gate LNG terminal.

[benfrankledger]

That's a large settlement wow.

[eFinanceMarkets]

Shell diverts U.S. LNG cargo to Dubai amid Qatar diplomatic dispute

In an example of the impact on shipping from the spat between Saudi Arabia and Qatar, Royal Dutch Shell (RDS.A, RDS.B) has diverted a liquefied natural gas cargo from the U.S. away from Kuwait to Dubai, which normally gets its LNG from Qatar.

Shell has a deal to supply the Dubai Supply Authority with LNG, but bans on Qatari vessels entering ports in the United Arab Emirates, imposed after several Arab countries cut diplomatic and transport links with Qatar, meant the LNG had to come from elsewhere.

Shell had said yesterday that its business in Qatar was not experiencing any operational disruptions.

[conix]

RDS chart

[eFinanceMarkets]

Shell says Geismar olefins expansion project still on schedule

Royal Dutch Shell (RDS.A, RDS.B) says it remains on schedule in the construction of its $717M project to increase alpha olefins production at its Geismar, La., chemical manufacturing plant, which will become the world's largest AO production site.

Shell says the 425K metric tons/year AO unit, which will join three existing units at the site, will begin commercial production by year-end 2018.

Shell plans to supply the Geismar expansion with ethylene feedstock from its nearby Norco, La., and Deer Park, Tex., manufacturing sites, which would bring total AO production at Geismar to more than 1.3M tons/year.

[eFinanceMarkets]

Reuters: Shell seeks $500M in sale of Tunisian gas assets

Royal Dutch Shell (RDS.A, RDS.B) is seeking to sell its gas fields in Tunisia for ~$500M, Reuters reports, as the company moves ahead with its $30B disposal program aimed at reducing debt following its takeover of BG Group last year.

The Tunisian assets include two offshore gas fields - Miskar, fully owned by Shell and Hasdrubal, 50% owned by Shell - as well as an onshore production facility.

The assets, which comprise nearly two-thirds of Tunisia's gas production, were acquired in the BG acquisition.

[eFinanceMarkets]

Shell, Aramco divide up Motiva JV assets

Royal Dutch Shell (RDS.A, RDS.B) and Saudi Aramco complete the separation of the assets, liabilities and businesses of their U.S.-based refining and marketing joint venture.

Shell now holds sole ownership of the 235K bbl/day Norco refinery, where subsidiary Shell Chemical already operates a petrochemical plant, and the 242,250 bbl/day Convent refinery, which Motiva previously said will be integrated to create the Louisiana Refining System, as well as 11 distribution terminals.

Alongside retaining 24 distribution terminals, the Saudis take 100% ownership of the 600K bbl/day Port Arthur, Tex., refinery and maintains an exclusive, long-term license to use the Shell brand for gasoline and diesel sales in several southern U.S. states.

[eFinanceMarkets]

Reuters: Shell Convent refinery HCU restart stopped due to leak

Royal Dutch Shell (RDS.A, RDS.B) has halted the restart of the heavy oil hydrocracking unit at its 235K bbl/day Convent, La., refinery because of a leak, Reuters reports.

Refinery officials had decided last week to shelve plans to keep the hydrocracker unit shut for three months to repair cracks in welds seen in X-ray photographs, concluding that the X-rays had been misread, according to the report.

Shell became the sole owner of the Convent refinery yesterday when it and previous refinery co-owner Saudi Aramco divided the assets of their Motiva Enterprises joint venture.

[eFinanceMarkets]

Dutch court orders Shell-Exxon criminal probe over quakes

A Dutch court orders prosecutors to open an investigation into whether the Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM) joint venture that oversees production at the Groningen gas field bears any criminal responsibility for earthquakes.

Several small quakes caused by production at the country's largest gas field have damaged thousands of buildings and structures across the Groningen province, and prosecutors previously have declined to act but an appeals court is now directing them to open an investigation.

The JV, which has accepted civil responsibility for damage caused by the quakes and is paying damages of more than €1B ($1.1B), says it is surprised by the decision.

[benfrankledger]

Interesting, they are upset when they put them in and when they take them out?

[eFinanceMarkets]

Shell opens treatment plant In Argentina's Vaca Muerta shale play

Royal Dutch Shell (RDS.A, RDS.B) says it has opened a treatment plant for shale oil and gas in Argentina's Vaca Muerta shale play.

Shell says the plant has the capacity to process up to 10K bbl/day from the Sierras Blancas, Cruz de Lorena and Coiron Amargo Sur Oeste blocks the company operates.

The plant is part of Shell's plan to invest $300M/year through 2020 in Argentina in exploration, refining, distribution and marketing.

[eFinanceMarkets]

Dutch to cut Groningen gas production to lower earthquake risk

The Netherlands will cut production of its Groningen gas field by 10% beginning in October to limit the risk of earthquakes, the country's economy minister says.

Production would be reduced to 21.6B cm/year from 24B cm/year as a first step, according to the minister; output has been cut several times from 53.9B cm in 2013 as criticism mounted the Dutch government had failed to adequately assess the risk from earthquakes caused by production at Europe's biggest field.

Groningen is operated by a joint venture between Royal Dutch Shell (RDS.A, RDS.B) and Exxon Mobil (NYSE:XOM).

[eFinanceMarkets]

Green groups reject Shell’s plans to abandon North Sea structures

Environmental groups criticize Royal Dutch Shell’s (RDS.A, RDS.B) plans related to the decommissioning of the company’s four platforms at the Brent field in the North Sea.

Shell wants to leave behind the concrete and steel structures that support the field’s platforms plus other materials such as drill cuttings contaminated with oil, which would be costly and difficult to remove, but eight groups including World Wildlife Foundation, Greenpeace and Friends of the Earth say Shell provided “insufficient information” to support its case.

The environmentalists’ response is considered a blow to Shell, as the Brent field - the biggest North Sea project to be decommissioned so far - is considered a test case for the industry.

[benfrankledger]

This is good news. Thanks for sharing.

[eFinanceMarkets]

Reuters: Shell signs three-year deal to lease oil tanks in Panama
Royal Dutch Shell (RDS.A, RDS.B) has signed a three-year contract to lease storage tanks at a large terminal in Panama that had been used by U.S. refining company Tesoro, Reuters reports.
The facility is owned by Petroterminal de Panama and includes up to 14M barrels of storage capacity on the Atlantic and Pacific shores.
The contract still needs final approval by Panama's finance ministry.

[eFinanceMarkets]

Shell to drill 160-plus new Australia wells to shore up gas supply
Royal Dutch Shell (RDS.A, RDS.B) says it will drill 161 new gas wells at its Queensland operations by the end of 2018, backing up its pledge to continue supplying 10% of the domestic gas market to help prevent a shortage.
The project at Shell's QGC operations in the Surat Basin has been planned for some time as existing wells decline, and the new wells will help sustain the company's 75 petajoules/year of gas supplies to eastern Australia's gas market.
Shell Australia Chairman Andrew Smith says onshore production in Queensland will allow businesses there to pay less than others further south where onshore drilling has been banned or restricted.

[eFinanceMarkets]

Nigerian court overturns seizure of oilfield from Shell, Eni
A Nigerian court overturns a request by Nigeria's financial crimes agency to seize an oilfield from Royal Dutch Shell (RDS.A, RDS.B) and Eni (NYSE:E).
In January, a court had ordered the seizure of the OPL 245 oil block and transfer of operations to the government following a request by the agency, which was investigating whether the $1.3B purchase of the block in 2011 involved "acts of conspiracy, bribery, official corruption and money laundering."

[benfrankledger]

The Board of Royal Dutch Shell plc ("RDS") today announced the Reference Share Price in respect of the fourth quarter interim dividend of 2016, which was announced on February 2, 2017 at $0.47 per A ordinary share ("A Share") and B ordinary share ("B Share") and $0.94 per American Depository Share ("ADS").

[Timothy Smith]

Shell’s assets are said to have caught the attention of former Centrica boss Sam Laidlaw, who reportedly was in talks with Shell over a deal with his Neptune P-E backed fund.

Shell is under pressure to sell $30B worth of assets from its global portfolio after its takeover of BG Group.

[GreenBrickRoad]

That's what I'm banking on as well. RDS hasn't let me down yet. I picked this up in the 30's at a 9% dividend rate. Even today at $50+ and a $7% dividend, it's hard to pass up.

[Spicknspan]

The dividend look secure, so you are being paid while you wait for higher energy prices--and a higher price--and a higher dividend.

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) says it will decide next year whether to resume installing subsea compressors at its giant Ormen Lange field offshore Norway, after stopping the project last year to save costs.

The Ormen Lange field, which feeds the Langeled pipeline under the North Sea, is one of the U.K.'s biggest sources of natural gas; Shell's partners include Statoil, Exxon Mobil and Dong Energy.

[OTCdoc]

Write Downs are going to be the norm for oil producers across the board....Especially the big boys....hope most are on the side lines on oil plays because they are going much lower in the next couple weeks :(

[Timothy Smith]

Royal Dutch Shell (RDS.A, RDS.B) says it is halting construction on the 80K bbl/day Carmon Creek oil sands project in Alberta, and will take a $2B charge to be recorded in its Q3 earnings, which are scheduled for release on Thursday.

Shell says the decision reflects "current uncertainties, including the lack of infrastructure to move Canadian crude oil to global commodity markets."

[Timothy Smith]

It was a smart move. The economics of that development were not good at these prices. Overall a good value proposition from here.

[OTCdoc]

for now...shell still a good buy.

[OTCdoc]

lookin good here...shell and TOT will both get contract to start drilling in Iran.

[Timothy Smith]

Shell's (RDS.A, RDS.B) $7B flop north of Alaska means billions of barrels of crude oil likely will remain locked away in Arctic waters from the U.S. to Russia, at least as long as prices remain anywhere near $50/bbl.

The result "will scare everybody away from trying [to drill in the Arctic] for a long, long time," says Per Magnus Nysveen, head of analysis at the Rystad Energy consultancy. “If Shell can’t do it... there is really nobody that can do it.”

With OPEC members still controlling 72% of proved oil reserves, the largely unexplored Arctic could be the last great prize; Alaskan waters alone are believed to hold ~25B barrels of oil, but drilling in remote waters is expensive.

Also a factor, a Shell source told Reuters, was the difficulty in navigating the U.S. regulatory process; the Obama administration dealt a blow to Shell in June when it ruled that laws protecting walrus and polar bears prevented the drilling of two rigs simultaneously at close range.

[ecmoney]

DRY HOLE

Shell has found indications of oil and gas in the Burger J well, but these are not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in accordance with U.S. regulations


Shell will now cease further exploration activity in offshore Alaska for the foreseeable future



http://ih.advfn.com/p.php?pid=nmona&article=68663742&symbol=RDS.A


ec

[conix]

Is anyone buying BG for the merger arbitrage?

[Timothy Smith]

Newly released documents reveal a multitude of problems with anti-pollution equipment and a botched fire drill earlier this year on separate Shell-contracted (RDS.A, RDS.B) Arctic drillships before beginning an exploratory oil well in the Chukchi Sea.

[Timothy Smith]

Shell hasn't reduced the dividend since 1945.

The high-grade payout has stood for 70 years, whether the price for a barrel of oil has been $140 or $10.

[Timothy Smith]

The global market selloff and plunging oil prices have increased fears that some of this year’s largest takeover deals are at risk of falling apart, including Royal Dutch Shell’s (RDS.A, RDS.B) ~$70B offer for BG Group (OTCPK:BRGXF, OTCQX:BRGYY), Financial Times reports.

[Timothy Smith]

There are a couple of reasons why Shell is performing better than its U.S. competitors.

First of all, Shell is more disciplined with respect to operational CAPEX.

Sure the company spent $70 billion to acquire BG Group (OTCPK:BRGXF), but operational CAPEX decreased much faster in the first half of 2015 compared to Exxon and Chevron.

Second, Shell is executing its operations very efficient. The company reported only a -15% drop in EPS while revenue dropped -37%.

[Timothy Smith]

It is my opinion that the economics are very challenged at these levels. Heck maybe even at $60 levels. However this project would take years to get fully developed and big oil is always planning years in advance or in this case to be ready for a rebound in prices. That said there have been reports of some off shore leases expected to expire, although I don't recall of any were related to $RDS.A.

[DewDiligence]

Does it still make economic sense to do so?