Royal Dutch Shell 'A' (RDSA)

Sector:

Energy Producers

Index:

FTSE 100

1,259.20p
   
  • Change Today:
    -58.40p
  • 52 Week High: 2,612.00p
  • 52 Week Low: 970.80p
  • Currency: UK Pounds
  • Shares Issued: 4,101.24m
  • Volume: 16,125,391
  • Market Cap: £51,643m
  • RiskGrade: 361

Shell in plan to save $10bn as Covid-19, oil price crash bite

By Frank Prenesti

Date: Monday 23 Mar 2020

LONDON (ShareCast) - (Sharecast News) - Shell said it was cutting capital expenditure, underlying operating costs and postponing the next phase of its share buyback to save $10bn in the face of the Covid-19 pandemic.
The oil giant said it would cut underlying operating costs by $3bn - $4bn a year over the next 12 months compared to 2019 levels and reduce cash capital expenditure to $20bn or below for 2020 from a planned level of around $25bn. Shelving the share buyback would save anther $1bn.

"Together, these initiatives are expected to contribute $8bn - $9bn of free cash flow on a pre-tax basis. Shell is still committed to its divestment programme of more than $10bn of assets in 2019-20 but timing depends on market conditions," the company said in a statement.

Chief executive Ben van Beurden said he was "taking immediate steps to ensure the financial strength and resilience of our business". Covid-19 has led to a slump in the demand for oil, particularly in the aviation industry exacerbated by the oil price war between Saudi Arabia and Russia.

"The combination of steeply falling oil demand and rapidly increasing supply may be unique, but Shell has weathered market volatility many times in the past."

Brent crude was trading almost 5% lower at less than $26 a barrel on Monday. Shell launched a $25bn share buyback to offset dilution from shares issued during the 2016 takeover of BG Group as well as shares issued as dividend payments after the last oil price crash of 2014 -16.

Hargreaves Lansdown analyst Nicholas Hyett said the company could come under pressure to put aside its " totemic dividend policy".

"However some shareholder returns have already proven less than sacrosanct, with the share buyback suspended. If we're in a new era of sustained sub-$40 oil then the dividend could yet become a burden that's too much to bear," he said..

"That's the rub for Shell investors. The group's taking emergency action to protect cash flow in the short term, but the influence of the oil price means its future is largely out of its hands. There's no knowing exactly how long the toxic combination of increased global supply and falling demand will last."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Shell Market Data

Currency UK Pounds
Share Price 1,259.20p
Change Today -58.40p
% Change -4.43 %
52 Week High 2,612.00p
52 Week Low 970.80p
Volume 16,125,391
Shares Issued 4,101.24m
Market Cap £51,643m
RiskGrade 361

Shell Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
85.85% above the market average85.85% above the market average85.85% above the market average85.85% above the market average85.85% above the market average
42.22% below the sector average42.22% below the sector average42.22% below the sector average42.22% below the sector average42.22% below the sector average
Price Trend
71.07% below the market average71.07% below the market average71.07% below the market average71.07% below the market average71.07% below the market average
8.00% above the sector average8.00% above the sector average8.00% above the sector average8.00% above the sector average8.00% above the sector average
Income
81.76% above the market average81.76% above the market average81.76% above the market average81.76% above the market average81.76% above the market average
80% below the sector average80% below the sector average80% below the sector average80% below the sector average80% below the sector average
Growth
15.16% above the market average15.16% above the market average15.16% above the market average15.16% above the market average15.16% above the market average
50.82% below the sector average50.82% below the sector average50.82% below the sector average50.82% below the sector average50.82% below the sector average

What The Brokers Say

Strong Buy 10
Buy 1
Neutral 17
Sell 0
Strong Sell 1
Total 29
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Shell Dividends

  Latest Previous
  Q1 Q4
Ex-Div 14-May-20 13-Feb-20
Paid 22-Jun-20 23-Mar-20
Amount 16.00¢ 47.00¢

Trades for 29-May-2020

Time Volume / Share Price
17:11 9,310 @ 1,259.00p
17:05 10,000 @ 1,259.20p
16:51 21,757 @ 1,262.66p
16:35 10,007,135 @ 1,259.20p
16:29 29 @ 1,258.00p

Shell Key Personnel

Chair Charles O Holliday
CEO Ben van Beurden
CFO Jessica Uhl

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