RDS.A:NYSE
RDS.B:NYSE

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:

"Liquified natural gas (LNG) prices around the world are quite low right now. Costs are lower, and there's lots of supply coming onstream, but big companies like Royal Dutch Shell Plc and Exxon Mobil have invested heavily in LNG projects in British Columbia because they know when oil prices come back, another huge disconnect from gas will occur. Right now, oil and gas are actually quite close in price per British thermal unit. But when oil was at $100/bbl, gas was $3/bbl, and that spurred a lot of demand for gas. Companies like Shell look at 20-, 30-, even 40-year cycles. And they like what they see. . .when oil is once again much more expensive than gas, you'll see demand for gas rocket right back up. I think that's what these big guys are seeing, and why they are still moving forward in a big way on gas projects. They understand that you have to work the cycle two or three times over the life of your asset, and you're going to make most of your money at the top and not very much at the bottom. They see today as the bottom that sets them up for success at the top of the next cycle. . .LNG in Canada is a bit of a binary trade right now with the Canadian election coming up Oct. 19. . .if the right-wing Conservatives get back in, then I think Shell. . .will probably move forward." read more >

Ray Merola, Seeking Alpha (8/28/15)
"I believe the probability of a Royal Dutch Shell Plc dividend cut is highly unlikely. In any event, the payout is air tight through 2016E. . .the company has arguably one of the two best balance sheets in the energy industry."

Pim Keulen, Seeking Alpha (8/24/15)
"Considering a long-term scenario with low oil prices, I believe Royal Dutch Shell Plc is the No. 1 stock for oil and gas investors to pick. With its acquisition of BG Group, the company gets even less dependent on oil prices in the future. . .Shell is outperforming its major U.S. oil and gas competitors."

Fadel Gheit, Oppenheimer & Co. (8/3/15)
"Compared to Royal Dutch Shell Plc's Q2/14, Q2/15 benefited from strong downstream results, reflecting improved operating performance and higher refining margins, and improved intermediates market conditions in chemicals. . . adjusted Q2/15 earnings were $3.8B, or $1.22/ADS, versus $1.07 consensus estimate, down 37% year over year but up 17% sequentially. Compared to Q2/14, strong downstream results partially offset the decline in upstream, which is attributable to the decline in oil and gas prices."

RBC Capital Markets (7/16/15)
"We recently upgraded Royal Dutch Shell Plc to Outperform (price target $22.50) (June 19) following significant underperformance versus peers, including a 22% difference compared with BP Group Plc year to date. We think the current share price underappreciates both BG's core asset quality and Shell's ability to extract additional value from its enlarged portfolio."

Ray Merola, Seeking Alpha (7/1/15)
"Royal Dutch Shell Plc has the financial heft to manage the current low energy price environment, and toss in a $70B BG Group Plc acquisition on top of it. The merits of the deal are heavily contingent on future energy prices, especially natural gas. It appears the company's balance sheet can weather the commodity price storm and handle the BG purchase. . .new Shell CEO Ben van Beurden has a notable reputation for emphasizing investment returns and cost discipline. . .Shell is a company in transition: a new CEO is taking bold steps. Investors must decide if he's on the right track."

More Expert Comments

Experts Commenting on This Company

Angelos Damaskos, Chief Executive Officer – Sector Investment Managers Ltd
Stephane Foucaud, Managing Director, Institutional Research – FirstEnergy Capital
Fadel Gheit, Managing Dir & Sr. Analyst – Oppenheimer & Co.
Elliott Gue, Founder – Capitalist Times
Brian Hicks – U.S. Global Investors
Pavel Molchanov – Raymond James
Keith Schaefer, Editor/Publisher – Oil and Gas Investments Bulletin

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
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
Q1
2015
January 29th 4Q earnings announced
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