Royal Dutch Shell Plc

The Shell Group (The Group) is a global group of energy and petrochemical companies with around 90,000 employees. The Group's businesses include oil and gas exploration and production, LNG, power generation, manufacturing, marketing and shipping of oil products and chemicals and renewable energy products. Shell's strategy seeks to reinforce the company's position as a leader in the oil and gas industry in order to provide a competitive shareholder return, while helping to meet global energy demand in a responsible way. Shares in the parent company, Royal Dutch Shell Plc, are traded on stock exchanges in Europe and the U.S.

Expert Comments:

Jefferson Research (1/21/15)
"Royal Dutch Shell Plc is showing strong cash flow quality, balance sheet quality and operating efficiency. . .when combined, Shell deserves a Buy rating. The primary reason the overall rating improved during the last quarter was an improvement in the balance sheet rating due to strengthening receivable and inventory positions."

Bob Ciura, Seeking Alpha (1/7/15)
"The collapse in oil and rising fears of recession in Europe has battered shares of Royal Dutch Shell Plc. The market is under-appreciating two key factors: The company's capital discipline and its integrated structure, which will both help keep profitability intact. Royal Dutch Shell's fundamentals have remained resilient even in the face of oil's decline, and investors are treated to a cheap stock with a secure 5.25% dividend yield."

Jefferson Research (1/2/15)
"Royal Dutch Shell Plc is showing strong cash flow quality, balance sheet quality and operating efficiency, and valuation suggests a lower amount of price risk. . .Shell deserves a Buy rating. The primary reason the overall rating improved during the last quarter was an improvement in the balance sheet rating due to strengthening receivable and inventory positions; another factor in the upgraded overall rating was an improved operating efficiency rating."

Pim Keulen, Seeking Alpha (12/15/14)
"I discussed three reasons for investors to consider buying (more) shares of Royal Dutch Shell Plc: First, Shell already completed most of its restructuring program. The company will not start new large-scale projects in 2015, which I consider a plus given the current unfavorable market conditions. Second, Shell's 5.97% dividend yield is historically high, an attractive entry point for income investors. Third, I mentioned the risk of even lower energy prices."

Fadel Gheit, Oppenheimer & Co. (11/28/14)
"Royal Dutch Shell Plc is refocusing its business strategy on creating value by investing in profitable energy projects with high return. . .Q3/14 adjusted earnings were $5.8B, up 30% on a per share basis from the year-ago period, on stronger downstream results driven by higher industry margins and capture rate and improved operating performance. Upstream results benefited from new higher-margin production, lower exploration expenses and higher integrated gas income. . .the company continued to make good progress on restructuring its North American resources plays, as it has essentially completed the asset sales and is focusing on reducing its refining operating costs. . .Shell has highly competitive fields under construction for start-up, particularly in the 2016–18 period."

Price Point, Seeking Alpha (11/4/14)
"Royal Dutch Shell Plc, with its ability to cover both dividends and capital expenditures from operating cash flow, is already in a position most of its European peers would love to be in. The company reported another strong quarter in terms of cash flow, generating $12.8B in operating cash flow. . .comfortably beating estimates. . .there is visible momentum to the turnaround story at Shell. . .the improved earnings combined with strong free cash flow generation provide further confidence that the underlying portfolio is improving. . .Shell's multi-year improvement potential, together with strong cash flow position and attractive valuation, keeps me bullish."

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Investing Highlights
 
$451.2 billion in revenue 2013
 
19.6 million tons of equity LNG sold in 2013
 
External survey reports 2013 Shell brand value over $29 billion
catalyst Calendar
Q2
2015
April 30th 1Q earnings announced
Q3
2015
July 30th 2Q earnings announced
Q4
2015
October 29th 3Q earnings announced
Royal Dutch Shell Plc Content