SHELL plc NYSE, LSE, EURONEXT: SHEL p. naftowy

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Investing.com - Shell (LON:RDSa) ADR reported on Thursday second quarter earnings that beat analysts' forecasts and revenue that topped expectations.

Shell ADR announced earnings per share of $3.06 on revenue of $100.06B. Analysts polled by Investing.com anticipated EPS of $2.75 on revenue of $94.53B.

Shell ADR shares are up 18.48% from the beginning of the year, still down 16.63% from its 52 week high of $61.67 set on June 7. They are outperforming the EUR/USD which is down 0% from the start of the year.

Shell ADR follows other major Energy sector earnings this month
Shell ADR's report follows an earnings beat by Equinor ADR on Wednesday, who reported EPS of $2.11 on revenue of $36.32B, compared to forecasts EPS of $1.62 on revenue of $36.63B.

Schlumberger had beat expectations on July 22 with second quarter EPS of $0.5 on revenue of $6.77B, compared to forecast for EPS of $0.3995 on revenue of $6.28B.

LONDON (Reuters) - Shell (LON:RDSa) on Thursday reported a second quarter profit of $11.5 billion, smashing its previous record just three months earlier, lifted by a tripling of refining profits and strong gas trading.

The company also announced a share buyback programme of $6 billion for the current quarter, but did not raise its dividend of 25 cents per share. It said shareholder returns would remain "in excess of 30% of cash flow from operating activities".

A rapid recovery in demand following the end of pandemic lockdowns and a surge in energy prices, driven by Russia's invasion of Ukraine, have boosted profits for energy companies after a two-year slump.

Shell bought back $8.5 billion of shares in the first half of 2022, and the new repurchase programme is significantly higher than forecasts.

"The strong oil price backdrop has helped Shell deliver a blockbuster set of results. The dividend may have remained the same, but the share buyback programme is positive news for shareholders," said Stuart Lamont, investment manager at Brewin Dolphin (OTC:BDNHF).

Shell shares were up 0.9% at the opening of trading in London.

French rival TotalEnergies also reported on Thursday a record profit of $9.8 billion in the quarter and accelerated its buyback programme.

Norway's Equinor raised its special dividend and boosted share buybacks on Wednesday.

U.S. rivals Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) report results on Friday.

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LONDON (Reuters) - Europe's biggest oil companies Shell (LON:RDSa) and TotalEnergies extended share buybacks on Thursday after their second-quarter profits beat an already record-breaking previous quarter on the back of soaring crude, gas and oil product prices.

The two companies combined are buying back $8 billion in shares in the third quarter after recording their respective highest quarterly profits while keeping their dividends steady, which might disappoint some investors.

Benchmark Brent crude oil futures have risen more than 140% in the past twelve months, averaging around $114 a barrel in the quarter.

High crude prices normally weigh on refining margins, but tight refined fuel supply supported record profitability in the second quarter, with Shell's refining margin virtually tripping to $28 a barrel.

Benchmark European natural gas prices and global liquefied natural gas prices were on average at all-time highs in the quarter.

Boosted by a record quarterly profit of $11.5 billion, Shell is buying back $6 billion of its own shares by late October, it said on Thursday, on the back of an $8.5 billion buyback scheme finished in the first half.

GRAPHIC: Shell's profits hit new record https://graphics.reuters.com/SHELL-RESU ... /chart.png https://graphics.reuters.com/SHELL-RESU ... /chart.png

While this is in excess of the company's guidance for shareholder returns of up to 30% of cash from operations, Shell did not raise its dividend from its current level of 25 cents a share, a 4% annual increase after a 60% cut during the pandemic.

TotalEnergies, with a 9% rise in quarterly profit to $9.8 billion, guided it would buy back $2 billion in the third quarter after purchasing $3 billion of its own shares in the first half of the year.

It had already announced a 5% yearly increase for its first quarterly dividend for this year to 0.69 euros per share, and said on Thursday it would keep that level for its second interim dividend of 2022.

"(TotalEnergies) has opted to maintain its buyback flat into (the third quarter), which may be disappointing to some investors given the current macro environment," RBC analyst Biraj Borkhataria said.

TotalEnergies' shares dipped 2.1% and Shell's shares were up 1.6% after the results announcement, having risen about 35% and 49% respectively in the past twelve months.

This compares with an index of European oil and gas firms gaining 1.6% in early trading.

GRAPHIC: TotalEnergies https://graphics.reuters.com/TOTALENERG ... /chart.png

The buybacks from Europe's two biggest oil and gas groups by market capitalisation came in the same week that Norway's Equinor raised its dividend and share buyback guidance for 2022 by 30% to a total of around $13 billion.

Smaller rival Repsol (OTC:REPYY) also announced a boosted share buyback programme on Thursday on the back of bumper profits, which doubled in the first half.

A rapid recovery in demand following the end of pandemic lockdowns and a surge in energy prices driven by Russia's invasion of Ukraine have boosted profits for energy companies after a two-year slump.

The strong profit windfall has allowed companies to reduce debt piles that grew sharply during the pandemic as well as boost returns to shareholders.

TotalEnergies' debt-to-capital ratio, or gearing, fell to below 10%, or half its level a year ago, from 12.5% in the first quarter, while Shell's dipped to 19.3% from 21.3%.

Eni, Exxon (NYSE:XOM) and Chevron (NYSE:CVX) are due to announce results on July 29 and BP (NYSE:BP) on Aug. 2.

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Holandia: Większość pracowników koncernu Shell otrzyma premię w wysokości 8 proc. rocznych dochodów.

https://www.pb.pl/holandia-wiekszosc-pr ... ow-1157554

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Shell (LON:SHEL) stock rose 1.5% with Reuters reporting that the energy giant has shortlisted candidates to succeed Chief Executive Officer Ben van Beurden, who is preparing to step down in 2023.

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W poniedziałek Shell ogłosił drugą inwestycję w malezyjski sektor naftowy i gazowy w ciągu miesiąca, pisze Reuters.

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Oil major Shell PLC (LON:SHEL) warned that third-quarter profits will be negatively impacted by a drop in refining margins and weak results from natural gas trading. Shares in Shell fell to near the bottom of the STOXX 600.

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Unia Europejska zdecydowała się na uniezależnienie się od rosyjskiego gazu. Poprzez pomysł wspólnych zakupów, ale także zwiększenie relacji z dostawcą, który do tej pory odpowiadał tylko za część dostaw.

Dobra wiadomość także dla Polski
Katar rozbudowuje największy na świecie gazoport, za pośrednictwem którego rozsyła wydobywany na swoim terytorium gaz ziemny w skroplonej formie. Tego typu surowiec na pokładzie gazowców trafia z Kataru także do gazoportu w Świnoujściu. Zwiększenie możliwości załadunku gazu w Katarze będzie więc pozytywnie wpływało także potencjalnie na bezpieczeństwo energetyczne Polski.

Katarczycy zaprosili właśnie do rozbudowy holendersko-brytyjski koncern Shell. Jedna z najbardziej znanych firm paliwowych na świecie przejmie 9,3 proc. udziałów w największym gazoporcie. Wcześniej swoje zaangażowanie w projekt ogłosiły także francuski TotalEnergies, włoski Eni i amerykański gigant ExonMobil. Nowy gazoport będzie zdolny do produkcji szacowanej na 32 mln ton skroplonego gazu rocznie.

Bezpieczeństwo dla Europy
To właśnie Katarczycy, przy ogromnym wkładzie USA, Włoch, Francji, Holandii i Wielkiej Brytanii, mają być nową nadzieją na stabilność energetyczną w Unii Europejskiej. Dzięki nowemu partnerstwu możliwe będzie nie tylko całkowite odcięcie się od dostaw z Rosji, ale także kontrolowanie cen surowca na europejskim rynku, co w ostatnim czasie stało się kluczowe po tym, gdy okazało się, że niemal całkowitą kontrolę nad ceną ma Rosja i może nią manipulować poprzez szantaż energetyczny, czy domniemane ataki na infrastrukturę przesyłową.

https://www.msn.com/pl-pl/finanse/najpo ... bfd58c0619

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Shell (LON:SHEL) stock rose 4% after the heavily-weighted energy giant said it will buy back up to another $4 billion in stock and raised its dividend by 15% after posting another massive profit in the third quarter, reaping the windfall from high oil and gas prices.

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LONDON (Reuters) - Shell (LON:RDSa) on Thursday posted a third-quarter profit of $9.45 billion, easing from the previous quarter's record high due to weaker refining and gas trading, as it announced plans to sharply boost its dividend by year end when its CEO departs.

Shell also extended its share repurchasing programme, announcing plans to buy $4 billion of stock over the next three months after completing $6 billion in the previous quarter.

The company said it intends to increase its dividend by 15% in the fourth quarter, when Chief Executive Officer Ben van Beurden will step down after nine years at the helm. The dividend will be paid in March.

Shell shares were up 2.5% after trading opened in London.

Van Beurden will be succeeded by Wael Sawan, the current head of Shell's natural gas and low-carbon division.

With a profit of $30.5 billion so far this year, Shell is well on track to exceed its record annual profit in 2008 of $31 billion.

The strong earnings were likely to intensify calls in Britain and the European Union to impose further windfall taxes on energy companies as governments struggle with soaring gas and power bills.

Shell's shares gained over 40% so far this year, lifted by soaring oil and gas prices in the wake of Russia's invasion of Ukraine in February and amid tightening global oil and gas supplies.

Rival TotalEnergies posted a record profit in the third quarter.

(Shell's quarterly profits recede from recent records https://graphics.reuters.com/SHELL-RESU ... /chart.png)

LNG WOES

The quarterly adjusted earnings of $9.45 billion, which slightly exceeded forecasts, were hit by a sharp 38% quarterly drop in the gas and renewables division, Shell's largest.

Earnings for the second quarter were a record $11.5 billion.

The world's largest trader of liquefied natural gas (LNG), produced 5% less LNG in the period compared with last year at 7.2 million tonnes mainly due to ongoing strikes at its Australian Prelude facility.

Its gas trading business was hit this quarter by "supply constraints, coupled with substantial differences between paper and physical realisations in a volatile and dislocated market."

Earnings from the refining, chemicals and oil trading division also dropped sharply by 62% in the quarter due to weaker refining margins.

Shell said it would stick to its plans to spend $23-$27 billion this year.

Shell's cashflow in the quarter dropped sharply to $12.5 billion from $18.6 billion in the previous quarter due to a large working capital outflow of $4.2 billion as a result of changes in the value of European gas inventories.

Shell's net debt rose by around $2 billion to $46.4 billion due to lower cashflow from operations and to pay for a recent acquisition. Its debt-to-capital ratio, known as gearing, also rose above 20%.

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Court rejects Nigeria's compensation request against Eni, Shell

MILAN (Reuters) - An appeals court in Milan on Friday rejected Nigeria's $1.092 billion compensation request against Italian energy group Eni SpA and Shell (LON:RDSa) Plc in civil proceedings relating to a $1.3 billion oilfield deal.

The decision was read out in court.

In July prosecutors had dropped related criminal proceedings, clearing Eni and Shell, as well as managers including Eni Chief Executive Claudio Descalzi, in one of the oil industry's biggest alleged corruption cases.

The main case revolved around a deal in which Eni and Shell acquired the OPL 245 offshore oilfield in 2011 to settle a long-standing dispute over ownership.

Prosecutors alleged that just under $1.1 billion of the total amount was siphoned off to politicians and middlemen.

Eni said on Friday it was satisfied with the appeals court's decision and added it had started an arbitration against the African country at the International Centre for Settlement of Investment Disputes (ICSID).

"Eni recalls that it has promoted a ICSID international arbitration in Washington against Nigeria for the protection of its OPL 245 license with respect to the overall detrimental consequences suffered in the affair," the Italian group said in a statement.

In a separate message, Shell said it was pleased that the civil proceedings had been dismissed.

"This follows the Milan criminal tribunal's finding that there was no case to answer for Shell or its former employees when they were fully acquitted in 2021, a decision that was upheld in July 2022, when criminal proceedings ended," Shell added.

A lawyer representing Nigeria in the proceedings said on Friday that the country was still deciding whether to appeal the decision at Italy's top administrative court.

Documents explaining the reasons behind Friday's court decision will be made available in 90 days.

https://www.investing.com/news/stock-ma ... ni-2941382

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Shell PLC (LON:SHEL), meanwhile, has reported better than expected fourth quarter income, driving 2022 profit up to a record high, as the British oil and gas company was boosted by a surge in energy prices sparked by the war in Ukraine. Shares in the group rose.

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Oil giant Shell reveals plans to hike dividend as quarterly profits more than double

KEY POINTS
The oil giant on Thursday announced a new share buyback program.
It also revealed plans to increase its dividend per share by around 15% for the fourth quarter of 2022.
The group’s results come soon after it was announced CEO Ben van Beurden will step down at the end of the year after nearly a decade at the helm.

https://www.cnbc.com/2022/10/27/oil-gia ... rofit.html

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Międzynarodowa organizacja trzeciego sektora Client Earth pozwała Radę Dyrektorów koncernu paliwowo-energetycznego Shell za – jak twierdzi – niewłaściwe zarządzanie ryzykiem klimatycznym.

Pozwanych zostało 11 dyrektorów koncernu naftowego Shell. Strona powodowa uważa, że strategia spółki w zakresie dążenia do osiągnięcia celów klimatycznych jest niewystarczająca. Jak twierdzą, nieodpowiednia strategia stawia przedsiębiorstwo w niekorzystnej sytuacji w świecie przechodzącym na "czyste źródła energii".

To pierwszy przypadek na świecie, kiedy dyrektorzy korporacji mieliby zostać pociągnięci do odpowiedzialnych za "nieodpowiednie przygotowanie ich firmy do przejścia na gospodarkę o ujemnym bilansie emisji".

Client Earth kontra dyrektorzy Shell
Według Client Earth – której zadeklarowanym przedmiotem działalności jest ochrona środowiska – kierownictwo spółki Shell naruszyło zobowiązania wynikające z prawa spółek, poprzez to, że nie wdraża strategii transformacji energetycznej, zgodnej z porozumieniem paryskim z 2015 r. (Jego istotą jest zatrzymanie globalnego wzrostu temperatury na poziomie 1,5 stopnia). W ocenie organizacji przekłada się to na "nieskuteczne zarządzanie istotnym i przewidywalnym ryzykiem, jakie stanowią dla firmy zmiany klimatyczne".

Client Earth domaga się do sądu zobowiązania władz Shell do przyjęcia strategii zarządzania "ryzykiem klimatycznym" zgodnej z obowiązkami nałożonymi przez ustawę o spółkach handlowych, a także z orzeczeniem sądu w Holandii, który miał wydać firmie nakaz redukcji emisji o 45 proc. do końca dekady. Sprawa jest w toku, ponieważ spółka odwołała się od wyroku.

https://www.msn.com/pl-pl/finanse/najpo ... eb31bcd9dd

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This Major Oil Stock Yields 4.4% and is a Buy Right Now

The world’s major oil companies have all reported record annual profits. And, despite what Wall Street is telling you, these are still stocks you want to have in your portfolio for both growth and dividends.

One oil major in particular reported some great earnings on February 2, making it a buy. Let’s take a look…

The company in question is Shell PLC (SHEL).

Europe’s largest oil and gas company said that adjusted earnings had more than doubled, to $39.9 billion—smashing the previous record of $28.4 billion set in 2008. That was the highest profits figure in Shell’s 115-year history!

And Shell’s adjusted earnings of $9.8 billion in the final quarter of the year—its second-highest quarterly figure ever—far exceeds average analyst estimates of $8 billion.

Almost two-thirds of Shell’s profits in the quarter came from its natural gas business, which includes the world’s largest liquefied natural gas (LNG) trading operation. That division generated adjusted earnings of $6 billion as Shell sold 16.8 million tons of LNG, up from 15.7 million tons in the third quarter.

The company’s net earnings in 2022 were more than 70% higher than just eight years earlier in 2014. One of the biggest differences between now and then was in the refining division, where refining margins were five times as high!

The other difference was pretty obvious: the normally quiet European natural gas market suffered massive shortages. The Ukraine war meant European gas prices averaged $40 per million BTU in 2022, almost four times what they were in 2014!

Shell’s Big Bet on Natural Gas

Shell’s latest results show that its big bet on natural gas—the $54 billion purchase of BG Group in 2015—was a wise move. At the time, Wall Street hated the move and punished the stock.

Most of the numbers below come from an article by The Financial Times’ Lex team:

Income at Shell’s midstream “integrated gas” division has grown by half since 2014—to $16.1 billion—and now accounts for 40% of Shell’s overall result.
Since 2014, the company has also gotten a lot more out of less. Shell’s cost per barrel of oil in 2022 was about half what it was in 2014, according to Bernstein analysts. That, together with those higher prices for natural gas, means net income from upstream operations was about 2.5 times that in 2014—despite 7% fewer barrels being produced.
Those higher natural gas prices and stronger refining margins helped push Shell’s return on capital employed (ROCE) to about 16%, more than double 2014’s number.
Shell Payouts

Now, let’s look at how Shell has treated its shareholders…

Shell distributed $26 billion to shareholders in 2022—more than 35% of operating cash flow. This included $18 billion in share buybacks. The company said it would buy back a further $4 billion in stock in the first four months of 2023.

The company also boosted its cash dividend by 15% in the fourth quarter, the fifth increase since it delivered a more than 60% cut in the wake of the coronavirus pandemic.

Overall, management is far exceeding its minimum targets of 4% annual dividend growth and shareholder distribution of 20% to 30% of operating cash flow.

Shell Remains Cheap

During the past five years Shell has reduced unit development cost and operating cost by 51% and 26%, respectively. Its goal is to reduce development costs by a further 10% and operating costs by 20% to 30%.

Shell has also reduced and focused investment on the highest quality assets. According to Shell, its slate of new projects will be return accretive with anticipated average returns of 20% to 25%, an average break-even price of $30 per barrel, and an average payback period of seven years. Based on Rystad data, Morningstar estimates Shell’s project queue has an average break-even price of just $42 per barrel, well below the current oil price.

Despite this, Shell remains an unloved, but high-return, investment. Even after the more than 25% share price increase seen in 2022, the oil and gas behemoth remains lowly rated by Wall Street. Shell sits at an EV/EBITDA ratios of 3. EV/EBITDA is a ratio that compares a company’s Enterprise Value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). The EV/EBITDA ratio is commonly used as a valuation metric to compare the relative value of different businesses.

I believe Shell stands to benefit more than its peers from the rise in global natural gas demand and likely strong prices for LNG over the next decade as it becomes an integral part of the energy landscape.

With regard to dividends, I would not be surprised to see an increase in the long-term return guidance (as a percent of cash flow) at Shell’s June strategic update. The current yield is 4.42%.

The stock is a buy anywhere in the $55 to $60 range.

— Tony Daltorio

https://dailytradealert.com/2023/02/11/ ... right-now/

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In broker note action, Shell was boosted by an upgrade to 'buy' from 'neutral' at Goldman Sachs, while Trainline rose after an upgrade to 'buy' at Deutsche bank.