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:

Fadel Gheit, Oppenheimer & Co. (5/18/15)
"Royal Dutch Shell Plc recently announced a merger with BG Group Plc to create the world's largest liquefied natural gas company and second largest energy company. The value of the stock transaction is ~$70B, or a 52% premium versus 3040% historically, based on a 30-day average."

"The proposed takeover of BG Group Plc by Royal Dutch Shell Plc illustrates the opportunity available to cash-rich companies. . .in the present environment, it is cheaper to buy proven reserves than pursue expensive and risky exploration. . .BG offers Shell very large proven reserves and production in a global portfolio, as well as attractive development projects in emerging regions such as Australia and Brazil. Shell got BG at a very attractive price, and this deal sorts out its declining reserves problem. Shell also gains a much larger global presence and will likely realize savings deriving from the elimination of duplicated functions." read more >

Fadel Gheit, Oppenheimer & Co. (4/30/15)
"Royal Dutch Shell Plc's adjusted Q1/15 earnings were $3.2B, or $1.04 per American depository share, vs. $0.78 consensus estimate but 56% below Q1/14 and flat sequentially. The positive surprise was a result of higher refining margins, strong trading results and lower effective tax rate, mainly in the United Kingdom. . .operating cash flow of $6.4B and $2.1B divestiture proceeds funded $6.6B in capital expenditures, $2.95B in dividends and $409M in share buybacks to offset dilution from scrip dividend. Cash was $19.9B, debt was $43.8B, and net debt was $24B for a net debt ratio of 12.4%."

Trefis (4/28/15)
"We expect Royal Dutch Shell Plc's downstream margins to receive a significant boost from thicker refining margins during the first quarter, primarily driven by an improved refining environment in Asia, higher refinery operating rates globally, and a reduced exposure to less-profitable downstream assets as a result of the ongoing divestment program. . .the company's overall refinery availability increased from 92% in 2013 to 94% last year, which increased the operating leverage, resulting in higher operating margins."

Pavel Molchanov, Raymond James (4/20/15)
"We reiterate our positive view on Royal Dutch Shell Plc's proposed deal as BG Group's meaningful exposure to Brazil deep water and liquefied natural gas is a natural and unique fit to Shell's strategy and capabilities. . .the company has already committed to keeping its dividend in 2016E unchanged, to cancel the scrip scheme by 2017 and also to a $25B buyback program for the period 2017-2020E, three very reassuring features for shareholders, in our view."

Pavel Molchanov, Raymond James (4/14/15)
"Royal Dutch Shell Plc's acquisition last week of BG Group Plc was notable for many reasons, not the least of which was the all-time record set for the corporate buyout of an exploration and development company. . .the addition of BG's 7 Mt/year is creating a veritable liquefied natural gas behemoth with nearly double Exxon Mobil Corp.'s market share."

More Expert Comments

Experts Commenting on This Company

Angelos Damaskos, Chief Executive Officer – Sector Investment Managers Ltd
Dave Forest, Managing Director – Pierce Points
Stephane Foucaud, Managing Director, Institutional Research – FirstEnergy Capital
Fadel Gheit, Managing Dir & Sr. Analyst – Oppenheimer & Co.
Elliott Gue, Founder – Capitalist Times
Bertrand Hodee – Raymond James
Pavel Molchanov – Raymond James

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