Royal Dutch Shell Group is an Integrated oil company. The Royal Dutch/Shell Group of Companies consists of the upstream businesses of Exploration & Production and Gas & Power and the downstream businesses of Oil Products and Chemicals. It also has interests in other industry segments such as Renewables and Hydrogen.

            Red = 25 day moving average.           Green = 200 day moving average.

Reuters - Fri Oct 6, 2006 1:44 PM

Fighting forces Shell to shut Nigeria pump station


ABUJA, Oct 6 (Reuters) - Gun battles between Nigerian militants and troops in the Niger Delta have forced Royal Dutch Shell (RDSa.L: Quote, Profile, Research) to shut a 9,000 barrel-a-day oil pumping station, company sources said on Friday.

The closure of the Ekulama I flow station was the first impact on oil output from a surge in violence in the eastern part of the Niger Delta this week, and adds to almost 500,000 barrels a day shut since February in the west.

"The recent attacks in the east around Cawthorne Channel have led to a further shut-in of 9,000 barrels per day," a Shell source said, asking not to be named.

Fighters with the Movement for the Emancipation of the Niger Delta (MEND) stormed an oil workers' houseboat at Ekulama on Wednesday in one of two confrontations with the military in which the militants said 17 soldiers were killed.

Fighting continued in the area on Thursday and industry sources said there were 35 militant speed boats full of fighters cruising around the creeks.

These sources said the militants had been shooting rifles at pipelines, but a MEND spokesman said the pipelines were damaged by fire from the military's helicopter gunship.

"The helicopter gunship punctured most of the pipelines in several areas causing crude oil and possibly refined products to seep out. That chopper fires .50 calibre rounds," the spokesman said in an email to Reuters.

Shell announces Gabon deep-water gas discovery
The Hague, 22 October 2014. Shell today announced a frontier exploration discovery offshore Gabon, West Africa. The well Leopard-1 encountered a substantial gas column with around 200 metres net gas pay in a pre-salt reservoir.

Leopard-1 is located around 145 kilometres off the Gabonese coast, west of Gamba. It was drilled in water 2,110 metres deep to a total vertical depth of 5,063 metres. Shell and partners are planning to undertake an appraisal programme to further determine the resource volumes.

"Shell has been exploring in Gabon for over 50 years. This latest deep water discovery is a testament to the innovation of our explorers in pursuing new plays, and application of our global sub-surface expertise," said Andy Brown, Shell Upstream International Director. "We are proud to be sharing this success with CNOOC Limited, our partner in the licence."

Leopard-1 was drilled in license BCD10, operated by Shell (75%). Second partner in the venture is CNOOC Limited (25%).

This frontier discovery follows recent deep water exploration successes in the heartlands for Shell Exploration in the Gulf of Mexico and Malaysia.

Note to editors
Frontier is one of the themes that Shell distinguishes in its exploration portfolio which covers under explored basins. Pre-salt means that the target reservoir is situated below a layer of salt which is a very good seal for hydrocarbons.

1800p looking likely, imo.

Same here, as with RDSB. Still on my watchlist and hopefully cash ready for the turn around.

StockMarketWire.com
Shell says its Q2 current cost of supplies (CCS) earnings came in at $3.4bn, from $5.1bn previously. Total dividends distributed in the quarter were $3.0bn. A Q2 dividend of $0.47 per share and $0.94 per American Depositary Share were announced.

Upstream highlights
During the quarter, the Malaysia LNG Dua Joint Venture Agreement ("JVA") expired and Shell transferred its 15% shareholding to Petronas, in accordance with the original JVA terms.

As part of its global exploration programme, Shell added new acreage positions following successful bidding results in the United States, the United Kingdom and Indonesia.

In July, the Browse Joint Venture agreed to enter the front end engineering and design ("FEED") phase for the proposed non-operated Browse Floating Liquefied Natural Gas (FLNG) development (Shell interest 27%), using Shell FLNG technology. The proposed development is expected to deliver around 12 million tonnes per annum of LNG.

In July, Shell announced the final investment decision ("FID") to advance the Appomattox deep-water development (Shell interest 79%) in the United States. The Appomattox platform will be Shell's seventh 4-column host in the Gulf of Mexico. The Appomattox development will initially produce from the Appomattox and Vicksburg fields, with average peak production estimated to reach approximately 175 thousand barrels of oil equivalent per day (boe/d).

In July, Shell announced that it reached an agreement with Kinder Morgan, Inc. for the sale of Shell's entire 49% equity interest in Elba Liquefaction Company, LLC, the owner of the Elba Liquefaction Project, which is proposed to be constructed and operated at the existing Elba Island LNG Terminal in the United States.

Downstream highlights
In France, Shell received a binding offer of euro 464 million ($529 million) from DCC Energy for its Butagaz Liquefied Petroleum Gas business. The transaction, subject to regulatory approvals following staff consultations, is expected to complete in 2015.

In the United States, Shell Midstream Partners, L.P. announced the execution of a purchase and sale agreement to acquire additional interests in Zydeco Pipeline Company and Colonial Pipeline Company for $448 million from Shell Pipeline Company. The acquisition will increase Shell Midstream Partners' ownership interest in Zydeco from 43.0% to 62.5% and in Colonial from 1.612% to 3.0%.

Also in the United States, Shell Pipeline Company sold its 100% interest in the Port Arthur Products Station and Shell Ex Facility, known as PAPS, to Colonial Pipeline Company.

In July, Shell Midstream Partners, L.P. completed the acquisition of a 36% equity interest in Poseidon Oil Pipeline Company for $350 million from Equilon Enterprises LLC, a subsidiary of Shell Oil Products US.

Having said earlier that 1800p was looking likely and now seeing it has reached 1600p, I wonder if the fall continues whether the divi might be trimmed accordingly.

I'm on RDSB as I believer RDSA has a dividend with-holding tax on it.

We know the dividend's protected for a while as Shell has publicly stated this. I guess they will try and hang on it as long as they can. and that depends on the price of oil and gas.

I'd say it's safe as I think the over-capacity in the industry will get dealt with over the next year.

Barclays note from the RDS conference:
"Paying an attractive dividend is the main priority
Shell are planning for what could be a prolonged downturn of the oil price and as a result are pulling a number of financial levers to pay what is an attractive dividend and the main priority of the business. This includes cuts to capital spend while maintaining a sensible and affordable investment program, cuts to operating costs and asset sales. CEO Ben Van Beurden was clear that should the macro environment further deteriorate, Shell would further cut capex through project postponement to protect the dividend. The priority of cash flow has not changed since the announcement of the BG transaction and Shell re-iterated its commitment to maintaining its 2015 dividend and paying at least the same dividend in 2016. As free cash flow increases, the company still intends to buy back at least $25bn of shares before the end of decade.
Will not walk away from the BG transaction
Shell see BG as a springboard into a simpler more profitable company and were very clear that the company would not walk away from the deal because of the move in spot prices. The deal is still expected to close in early 2016 and CEO Ben Van Beurden was confident that outstanding regulatory approval would be received in China and Australia. Shell re-iterated it sees strong strategic rationale for the deal with the combined with the company offering a $10/bl reduction in upstream breakeven, greater free cash flow protection of the dividend and providing management with a chance to re-assess the long-term project opportunity set.
Downstream business is delivering
Over the last 12 months, the downstream business has generated $13bn of cash flow with returns in excess of 15%. This is above Shell’s through-cycle targets and has to some extent helped the company mitigate the impact of a lower oil price this year. While part of this improvement relates to higher industry margins at a lower oil price much also relates to self-help measures from Shell including non-core disposals, cost reduction plans and greater operational uptime. During the presentation, CEO Ben Van Beurden indicated that there was more to come from the downstream division over the rest of this year and 2016.
Only the most attractive and affordable projects will go ahead
In what could be a prolonged period of low oil prices, Shell is implementing a rigorous appraisal process and one that allows only the very best projects to go ahead as long as they are affordable according to the prevailing environment. Shell sees opportunities in its portfolio with projects with an NPV breakeven less than $50/bl and plans against an NPV breakeven at less than $70/bl. The company gave the example of the Appomattox deepwater project in the Gulf of Mexico where Shell were able to reduced costs by 20% between FEED and project sanction to achieve an NPV breakeven of $55/bl.
Investment community too focused on spot LNG prices
Only 10-15% of Shell’s LNG sales are sold on the ‘spot’ LNG markets with the remainder sold on much longer dated contracts linked predominantly to the oil price. Although contracts pricing renegotiations typically take place every 3-6 years, Shell do not expect a dramatic shift in pricing formulae and rather small incremental changes. CEO Ben Van Beurden indicated his view that the oil link in contracts is likely to stay in Asia with any links to Henry Hub likely resulting in too much seasonal price volatility for buyers particularly during the winter months."

Moody's negative outlook for oil and gas industry to remain into 2016
http://www.digitallook.com/news/international-economic/moodys-negative-outlook-for-oil-and-gas-industry-to-remain-into-2016--865303.html

StockMarketWire.com
Shell said the Burger J exploration well, at Alaska's Chukchi Sea, will be sealed and abandoned in accordance with US regulations after indications of oil and gas were decided insufficient to warrant further exploration.

"Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska," it said.

"The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell's Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results."

Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea. Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.

Shell to halt Carmon Creek in situ project
The Hague - 27 October 2015. Royal Dutch Shell plc (Shell) today announces that the company will not continue construction of the 80,000 barrel per day Carmon Creek thermal in situ project located in Alberta, Canada.
Shell originally sanctioned the project in October 2013 and announced in March 2015 that the project would be re-phased to take advantage of the market downturn to optimise design and retender certain contracts. After careful review of the potential design options, updated costs, and the companys capital priorities, Shells view is that the project does not rank in its portfolio at this time. This decision reflects current uncertainties, including the lack of infrastructure to move Canadian crude oil to global commodity markets.
We are making changes to Shells portfolio mix by reviewing our longer-term upstream options world-wide, and managing affordability and exposure in the current world of lower oil prices. This is forcing tough choices at Shell, said Chief Executive Officer, Ben van Beurden.
Shell will retain the Carmon Creek leases and preserve some equipment while continuing to study the options for this asset. The company expects to take net impairment, contract provision, and redundancy and restructuring charges of some $2 billion as a result of this decision with the third quarter 2015 results, which will be included as an identified item. The project SEC Proved Reserves estimated at 418 million barrels bitumen at end 2014 will be de-booked and the project estimated recoverable petroleum resources will be classified as Contingent Resources. Carmon Creek is 100% Shell owned.

StockMarketWire.com
Royal Dutch Shell (RDSA) said its Q3 earnings, on a current cost of supplies (CCS) basis, were a loss of USD6.1bn, from a profit of USD5.3bn a year earlier.

Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were USD3.0bn, of which USD0.7bn were settled under the Scrip Dividend Programme. No shares were bought back during Q3.

Gearing at the end of the third quarter 2015 was 12.7%.

A third quarter 2015 dividend has been announced of USD0.47 a share and USD0.94 per American Depositary Share (ADS).

CEO Ben van Beurden commented:

"Shell's integrated business and our performance drive are helping to mitigate the impact of low oil prices on the bottom line, in what is a difficult environment for the industry today.

"We continue to improve the operational performance of our assets, and production volumes are up. Costs are falling across the company and Shell's performance drive is delivering at the bottom line.

"Our financial framework is highly competitive, with balance sheet gearing at 12.7%, similar to year ago levels, despite a halving of oil prices. Both net investments and dividends have been covered by operating cash flow over the last year, when oil prices have averaged $60 per barrel.

"While our cash flow and our operating performance in the quarter were strong, the headline numbers were reporting today include substantial charges.

"These charges reflect both a lower oil and gas price outlook and the firm steps we are taking to review and reduce Shell's longer-term option set.

"We have halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek in-situ oil project in Canada.

"These are difficult, but impactful decisions. I am determined that Shell will become a more focused and competitive company as a result.

"The BG deal, which remains on track for completion in early 2016, is a springboard to focus Shell into fewer and more profitable themes, especially deep water and integrated gas."

Ex-divi thurs 12th Nov (0.47¢)

StockMarketWire.com
Shell and BG (BG) said, following satisfaction of the final pre-condition to the recommended combination and with the unanimous approval of both boards, the latter company is seeking the approval of the High Court to publish its scheme document and convene the related shareholder meetings.

Following High Court approval, the scheme document will be published as soon as practicable, which is currently expected to be on 22 December 2015.

Subject to approval of the UK Listing Authority, the Shell shareholder circular and prospectus are expected to be published at the same time as the scheme document.

Shell and BG shareholder meetings to approve the recommended combination are expected to be convened on 27 and 28 January 2016, respectively. Full details will be included in the shareholder documentation

StockMarketWire.com
Shell said FY 2015 earnings on a CCS basis, excluding identified items, are expected to fall in the range USD10.4bn-USD10.7bn. It said identified items for the 12-month period are seen as a net charge of USD6.8bn-USD7.0bn.

Production for Q4 was 3.0bn boe/d, and for the FY was 2.9m boe/d.

CEO Ben van Beurden was pleased with Shell's operating performance in 2015, and the momentum in the company to reduce costs and to improve competitiveness.
"The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns.

"Shell's drive to improve competitive performance is delivering at the bottom line. Operating costs have reduced by $4 billion, or around 10% in 2015, and the company expects Shells costs to fall again in 2016, by a further $3 billion.

"Synergies from the BG combination will be in addition to that. Together, these actions will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies, as streamlining and integration of the two companies continue.

"Shell is taking impactful steps to refocus and reduce capital spending. Shell's capital investment in 2015 is expected to be $29 billion, an $8 billion or over 20% reduction from 2014 levels.

"This has been delivered by efficiency improvements and more selectivity on new investments. Capital investment for Shell and BG combined in 2016 is currently expected to be $33 billion, around a 45% reduction from combined spending, which peaked in 2013. Flexibility for further reductions is available and will be utilised should conditions warrant that. As a result of the above actions we have retained a strong balance sheet position at around 14% gearing.

"Asset sales for 2014 and 2015 now exceed $20 billion, well above the original plan of $15 billion set out in early 2014. Preparations are well advanced for $30 billion of asset sales in 2016-18, assuming the successful completion of the combination.

"In addition to divestments, Shell has taken impactful decisions in 2015 to reduce longer term, low return upstream positions, such as the exit from Alaska exploration for the foreseeable future, cancellation of Carmon Creek heavy oil project, and exit from shales positions in multiple countries.

"Shells fourth quarter and full year 2015 results and fourth quarter 2015 dividend are scheduled to be announced on 4 February 2016. A Shell General Meeting in relation to the proposed combination is scheduled for 27 January 2016 in The Hague, The Netherlands.

i don't know the yield, but as a top class company that is still turning in A1 results from the wrong sector, this could be a good safety stock

Citigroup today upgrades its investment rating on Royal Dutch Shell (LON:RDSA) to buy (from neutral) and left its price target at 1775p.

StockMarketWire.com
Shell said its FY 2015 earnings on a current cost of supplies (CCS) CCS basis were USD3.8bn, from USD19.0bn in 2014. Its Q4 2015 CCS earnings basis were USD1.8bn, from USD4.2bn in the same period in 2014.

CEO Ben van Beurden commented:
"The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company, and improving shareholder returns.

"We are making substantial changes in the company, reorganising our Upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices.

"As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies.

"In 2015, we significantly curtailed spending by reducing the number of new investment decisions and designing lower-cost development solutions.

"For 2016, we have exited the Bab sour gas project in Abu Dhabi, and are postponing final investment decisions on LNG Canada and Bonga South West in deep water Nigeria.

"Operating costs and capital investment have been reduced by a total of $12.5 billion as compared to 2014, and we expect further reductions in 2016.

"As a result of our actions in 2015, we have retained a strong balance sheet position, with 14% gearing. Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.

"Shell's dividends for 2015 were $1.88 per share, and are expected to be at least $1.88 per share in 2016, as previously announced."

HIGHLIGHTS
- Fourth quarter 2015 CCS earnings excluding identified items (see page 5) were $1.8 billion compared with $3.3 billion for the fourth quarter of 2014, a decrease of 44%. Fourth quarter 2015 earnings were positively impacted by non-cash net gains of some $0.3 billion related to currency exchange rate effects on deferred tax positions. Full year 2015 CCS earnings excluding identified items were $10.7 billion compared with $22.6 billion in 2014.

- Compared with the fourth quarter 2014, CCS earnings excluding identified items benefited from continued strong Downstream results reflecting steps taken by the company to improve financial performance. In Upstream, earnings were impacted by the significant decline in oil and gas prices, partly offset by lower costs. Contributions from integrated gas were higher mainly as a result of improved trading performance and the effect of the strengthening of the Australian dollar on deferred tax positions.

- Fourth quarter 2015 basic CCS earnings per share excluding identified items decreased by 44% versus the fourth quarter 2014. Full year 2015 basic CCS earnings per share excluding identified items decreased by 53% versus 2014.

- Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $3.0 billion, of which $1.2 billion were settled under the Scrip Dividend Programme. No shares were bought back during the fourth quarter.

- Gearing at the end of 2015 was 14.0% compared with 12.2% at the end of 2014.

- A fourth quarter 2015 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (ADS).

- Royal Dutch Shell is expected to announce a dividend of $0.47 per ordinary share and $0.94 per ADS in respect of the first quarter 2016.

StockMarketWire.com
Royal Dutch Shell (RDS) has declared an interim dividend in respect of the fourth quarter of 2015 of US$0.47 per A ordinary share (A Share) and B ordinary share (B Share), equal to the US dollar dividend for the same quarter last year.

The Board expects that the first quarter 2016 interim dividend will be US$0.47, equal to the US dollar dividend for the same quarter in the previous year. The first quarter 2016 interim dividend is scheduled to be announced on May 4, 2016.

Barclays comment today:
"Having pre-released 4Q numbers, the final RDS results are reassuringly in-line. At $1.9bn, the adjusted net income is at the top end of the $1.6-1.9bn range with cash flow from operations of $5.4bn in the middle of the $4.8-$6bn range given at the time. As we highlighted at the time of the pre-release, Shell has not had a good track record of performing well at the fourth quarter, but in the context of other results this quarter it does appear to have held up relatively well. Guidance for production for 1Q highlights planned maintenance in the Pearl GtL plant in Qatar with the only other news of note the -20% reserve replacement figure, which was heavily impacted by price effects and the stopping of Carmon Creek. As anticipated, there were no new targets ahead of the planned closing of the BG deal on February 15th. Recent actions make it clear that Shell has been resetting the business not only in preparation for a lower oil price environment with less competitive options being stopped, but also for the incorporation of the BG assets. Shell is clearly not exempt from the squeeze in earnings and cash flow faced by the industry but with the acquired assets it is likely to have more levers than most to pull through the downturn. We continue to see the investment case for Royal Dutch Shell as compelling and rate the stock Overweight with a 2750p/sh price target."

Quite a strong bounce from 1300p.......Doji candlestick warning of a trend change?

Barclays Capital 01.03.16 reaffirms its overweight investment rating on Royal Dutch Shell (LON:RDSA) and cut its price target to 2450p (from 2750p).

i inherited these thanks to my holding in BG, and very nicely they have done too

Surely you must be showing quite a large loss on your new RDSA holding as you also received cash in lieu of shares?

i've got them in CFD and to be honest, i'm not sure how it was all worked out
however, my RDSB (as it happens) are up £1.40 since i acquired them

Yes, that looks to be mega complicated. Presumably you were long CFD? I assume, though probably incorrectly, that you were just switched over to RDSA with an adjustment to your purchase price. Ordinary shareholders of BG. got gash and shares in RDSA (?).

i think they got RDSB, but they trade at the same price

Nomura today reaffirms its buy investment rating on Royal Dutch Shell (LON:RDSB) and raised its price target to 1750p (from 1575p).

I got RDSB for my BG.

RDSA dividends are in Euros and I think taxed in Holland AT 20%, and RDSB dividends are in sterling and just have a 10% tax credit which means from April no tax credit, RDSB dividends will be paid gross.

StockMarketWire.com
Royal Dutch Shell said its Q1 CCS earnings attributable to shareholders came in at USD0.8bn, down 83% from USD4.8bn. The recently-acquired BG Group has been included in the results.

CEO Ben van Beurden said Shell's Downstream and Integrated Gas businesses delivered strong results and underpinned the company's financial performance despite continued low oil and gas prices.

"We continue to reduce our spending levels, to capture cost opportunities and manage the financial framework in todays lower oil price environment. The combination with BG is off to a strong start, as a result of detailed forward planning before the completion of the transaction.

"This will likely result in accelerated delivery of the synergies from the acquisition, and at a lower cost than we originally set out.

"Putting all of this together, capital investment in 2016 is clearly trending toward USD30 billion, compared to previous guidance of USD33 billion, and some 36% lower than combined Shell and BG investment in 2014.

"Annual operating expenses excluding identified items are trending towards a run rate of USD40 billion compared with 2014 combined spend of around $53 billion.

"In practice, we expect to absorb BGs capital investment and operating expenses during 2016, with no net increase overall, compared with Shell stand alone in 2015.

"We will continue to manage spend, through dynamic decision-making across the organisation, taking advantage of opportunities from both the deflating market and the two companies coming together.

"The completion of the BG deal has reinforced our strategy and strength against the backdrop of hugely challenging times for our industry. For Shell and our shareholders, this is a unique opportunity to reshape and simplify the company."

HIGHLIGHTS:
- First quarter 2016 CCS earnings attributable to shareholders excluding identified items (see page 6) were $1.6 billion compared with $3.7 billion for the first quarter 2015, a decrease of 58%.

- Compared with the first quarter 2015, CCS earnings attributable to shareholders excluding identified items were impacted by the decline in oil, gas and LNG prices and weaker refining industry conditions. Earnings benefited from lower operating expenses, as steps taken by Shell to reduce costs more than offset the increase in operating expenses associated with BG.

- First quarter 2016 basic CCS earnings per share excluding identified items decreased by 63% versus the first quarter 2015.

- Cash flow from operating activities for the first quarter 2016 was $0.7 billion, which included negative working capital movements of $3.9 billion.

- Total dividends distributed to shareholders in the quarter were $3.7 billion, of which $1.5 billion were settled by issuing 65.7 million A shares under the Scrip Dividend Programme.

- Gearing at the end of the first quarter 2016 was 26.1% versus 12.4% at the end of the first quarter 2015. This increase mainly reflects the impact of the acquisition of BG.

- A first quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (ADS).

Jefferies International today reaffirms its buy investment rating on Royal Dutch Shell (LON:RDSA) and raised its price target to 2400p (from 2040p).

Morgan Stanley today reaffirms its overweight investment rating on Royal Dutch Shell (LON:RDSA) and raised its price target to 2400p (from 2280p).

StockMarketWire.com
Shell (RDSA) said its H1 current cost of supplies (CCS) earnings attributable to shareholders was $1.053bn, from $8.122bn a year earlier.

It announced an interim dividend for Q2 of $0.47 per A and B ordinary shares, equal to the US dollar dividend for the same quarter last year.

The oil and gas titan's Q2 CCS earnings attributable to shareholders was $0.2bn, from $3.4bn a year earlier.

CEO Ben van Beurden commented that Shell's Downstream and Integrated Gas businesses contributed strongly to the results, alongside Shell's self-help programme.

"However, lower oil prices continue to be a significant challenge across the business, particularly in the Upstream.

"We are managing the company through the down-cycle by reducing costs, by delivering on lower and more predictable investment levels, executing our asset sales plans and starting up profitable new projects.

"At the same time, integration of Shell and BG is making strong progress, and our operating performance continues to further improve.

"We are making significant and lasting changes to Shell's working practices and cost structure. Shell is firmly on track to deliver a $40 billion underlying operating cost run rate at the end of 2016.

"Looking through the cycle, our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case through stronger, sustained and growing free cash flow per share."

StockMarketWire.com
Royal Dutch Shell has swung to Q3 CCS earnings attributable to shareholders of $1.4bn, from a loss of $6.1bn a year ago. Excluding identified items, these earnings totalled $2.8bn, versus $2.4bn a year earlier.

"Shell delivered better results this quarter, reflecting strong operational and cost performance," said CEO Ben van Beurden in a statement.

"But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain."

Van Beurden said the company's investment plans and portfolio actions were focused firmly on reshaping Shell into a world-class investment case at all points in the oil-price cycle, through stronger returns and improved free cash flow per share.

"We are making good progress towards this aim in spite of current challenging market conditions.

"The integration of Shell and BG is now essentially done and has been completed well ahead of plan. It's been an important catalyst for the significant and lasting changes we are making to the company's working practices, cost structure and portfolio.

"In parallel with the integration, we have been managing the company through the down-cycle by reducing costs and investment levels, while executing our asset sales plans and starting up new projects.

"Our underlying operational costs in 2016 are already at an annualised run rate of $40 billion, $9 billion lower than Shell and BG costs in 2014. They're set to reduce further on a like-for-like basis as deal synergies and improvements are delivered in full.

"Meanwhile, 2016 organic capital investment - which includes $3 billion in non-cash items - will be around $29 billion, some $18 billion below 2014 Shell and BG levels. Capital investment for 2017 is expected to be around $25 billion which is at the low end of our $25-$30 billion range.

"We are actively working on 16 material asset sales as part of the company's planned $30 billion divestment programme.

"Cash flow will be further boosted by new projects. When fully ramped up, projects started up in 2016 are expected to add more than 250 thousand barrels of oil equivalent per day (boe/d). Cash flow from new projects started up between 2014 and 2018 is expected to total $10 billion in 2018, at an average $60 oil price."

HIGHLIGHTS:
- Compared with the third quarter 2015, CCS earnings attributable to shareholders excluding identified items benefited from increased production volumes mainly from BG assets, lower operating expenses more than offsetting the increase related to the consolidation of BG, and lower well write-offs. This was partly offset by the decline in oil, gas and LNG prices, and increased depreciation mainly resulting from the BG acquisition, and weaker refining industry conditions.

- Third quarter 2016 basic CCS earnings per share excluding identified items decreased by 8% versus the third quarter 2015.

- Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.

- Total dividends distributed to shareholders in the quarter were $3.8 billion, of which $1.1 billion were settled by issuing 44.1 million A shares under the Scrip Dividend Programme.

- Gearing at the end of the third quarter 2016 was 29.2% versus 12.7% at the end of the third quarter 2015. This increase mainly reflects the impact of the acquisition of BG.

- A third quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (ADS).

BMO Capital Markets today reaffirms its market perform investment rating on Royal Dutch Shell (LON:RDSA) and raised its price target to 1900p (from 1600p)

Reuters - Royal Dutch Shell (RDSa.L) announced two divestments on Tuesday worth $4.7 billion including selling a chunk of its North Sea assets to private-equity backed Chrysaor which will now become a top three oil and gas producer in Britain.

The deals bring Shell's disposals to $12.5 billion since mid-2015 as it aims for $30 billion in deals by 2018.

Shell is reducing debt accrued through its $54 billion acquisition of BG Group last year.

Shell agreed to sell a mixture of new and late-life North Sea oil and gas assets, accounting for more than half of Shell's UK North Sea production, to Chrysaor for up to $3.8 billion.

"(The deal is) providing a springboard for Chrysaor to bring new investment and growth into the basin," said Shell Upstream Director Andy Brown.

The deal is expected to complete in the second half of the year and will make Chrysaor Britain's leading independent exploration and production company.

Chrysaor is backed by EIG and Noble Group (NOBG.SI) investment firm Harbour Energy. BMO Capital Markets Ltd advised the company, while Bank of America Merrill Lynch advised Shell.

Major oil companies such as Shell and BP (BP.L) are withdrawing from the mature North Sea basin to instead focus on higher-profit areas like Brazil or the Gulf of Mexico.

StockMarketWire.com
Royal Dutch Shell has booked FY CCS earnings attributable to shareholders of $3.5bn, from $3.8bn a year earlier. In Q4, CCS earnings attributable to shareholders were $1.0bn, from $1.8bn.

"We are reshaping Shell and delivered a good cash flow performance this quarter with over $9 billion in cash flow from operations," said CEO Ben van Beurden.

The company's debt had been reduced and, for the second consecutive quarter, free cash flow had more than covered its cash dividend.

Its Q4 dividend was $0.47 per ordinary share and $0.94 per American Depositary Share (ADS).

Van Beurden continued: "Production and LNG volumes included delivery from new projects, with ramp-up continuing in 2017 and 2018."

Meanwhile, he added, the company was operating at an underlying cost level that was $10bn lower than Shell and BG combined only 24 months ago.

"We are gaining momentum on divestments, with some $15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall $30 billion divestment programme as planned."

Looking ahead, van Beurden said Shell would further focus the portfolio and strengthen the its financial framework in 2017.

"Our strategy is starting to pay off and in 2017 we will be investing around $25 billion in high quality, resilient projects."

Shell was expected to announce a dividend of $0.47 per ordinary share and $0.94 per ADS for Q1 2017.

Returning to the results, FY 2016 CCS earnings attributable to shareholders excluding identified items were $7.2bn, from $11.4bn in 2015.

Gearing at the end of 2016 was 28.0% (2015 14.0%). There was an increase of 9.7% on acquisition of BG.

Macquarie today reaffirms its outperform investment rating on Royal Dutch Shell (LON:RDSB) and set its price target at 2400p.

StockMarketWire.com
Royal Dutch Shell has agreed to sell all of its in-situ and undeveloped oil sands interests in Canada and reduce its share in the Athabasca Oil Sands Project (AOSP) from 60% to 10%.

The combination of these transactions -- the result of agreements signed by Shell Canada Energy, Shell Canada Ltd and Shell Canada Resources -- would result in a net consideration of $7.25bn to Shell.

Shell would remain as operator of AOSP's Scotford upgrader and Quest carbon capture and storage (CCS) project.

Under the first agreement, Shell will sell to a subsidiary of Canadian Natural Resources Ltd its entire 60% interest in AOSP, its 100% interest in the Peace River Complex in-situ assets, including Carmon Creek, and a number of undeveloped oil sands leases in Alberta, Canada.

The consideration to Shell from Canadian Natural was about $8.5bn, comprised of $5.4bn cash plus around 98m Canadian Natural shares currently valued at $3.1bn.

Canadian Natural is one of Canada's largest energy companies and a leader in the oil sands, with a market capitalisation of about $35bn.

Separately and under the second agreement, Shell and Canadian Natural would jointly acquire and own equally Marathon Oil Canada Corporation, which holds a 20% interest in AOSP, from an affiliate of Marathon Oil Corporation for $1.25bn each, to be settled in cash.

Reuters - Royal Dutch Shell (RDSa.L) said on Tuesday it will drill 161 new gas wells at its Queensland operations by the end of 2018, helping to underpin its promise to continue supplying 10 percent of the domestic gas market to help prevent a shortage.

The project at its QGC operations in the Surat Basin in southeast Queensland has been planned for some time as existing wells decline, with the new wells due to be drilled this year and next. The wells will help sustain Shell's 75 petajoules of gas supplies a year to eastern Australia's gas market.

The new drilling will not affect exports from Shell's Queensland Curtis liquefied natural gas (LNG) plant.

The announcement came a week after Prime Minister Malcolm Turnbull hauled in Australia's gas producers, led by Shell Australia and ExxonMobil Corp (XOM.N), to discuss how to boost supplies in face of warnings from the nation's energy market operator of a looming shortage within the next two years.

Gas supply has become a hot issue, following blackouts and brownouts in Australia's eastern states over the past year, and as growth in LNG exports has led to soaring gas prices for manufacturers.

Reuters - Royal Dutch Shell Plc has decided to offload a roughly C$4.1 billion (2.3 billion pounds) stake in Canadian Natural Resources Ltd (CNRL) that it acquired as part of a deal to retreat from Canada's oil sands earlier this year, people familiar with the situation told Reuters.

The energy company has been interviewing investment banks to hire a financial adviser for the share sale, four people said in the past week, declining to be named as the discussions are confidential.

The deal could be one of the biggest-ever equity sales in Canada. The largest Canadian equity deal so far was TransCanada Corp's C$4.4 billion offering last year.

Shell and Canadian Natural declined to comment. Canadian Natural shares fell about 1 percent after the Reuters report and were trading down 2.1 percent at C$41.12 on Tuesday afternoon.

In March, Shell agreed to sell most of its Canadian oil sands assets for $8.5 billion, in a major strategic pullback from the capital-intensive business. As part of the transaction, Shell acquired about 98 million Canadian Natural shares, or about 8.8 percent of CNRL's outstanding shares, which are currently valued at about C$4.1 billion.

StockMarketWire.com
Royal Dutch Shell's income attributable to shareholders surged from $1.5 billion to $4 billion in the third quarter, a year-on-year increase of 197%.

Earnings increased from $1.4 billion to $3.7 billion, a rise of 155%, which the company said reflected higher contributions from Downstream, Upstream and Integrated Gas.

Earnings benefited mainly from stronger refining and chemicals industry conditions, increased oil and gas prices and higher production from new fields, which offset the impact of field declines and divestments.

Cash flow from operating activities was $7.6 billion, included negative working capital movements of $2.5 billion, mainly due to increases in inventory value and current receivables, compared with favourable working capital movements of $0.7 billion in the third quarter 2016.

Excluding working capital effects, cash flow from operations was $10.1 billion.

Royal Dutch Shell chief executive officer Ben van Beurden said Shell's three businesses all made resilient contributions to a "strong set of results".

Upstream generated almost half of the $10 billion cash flow from operations excluding working capital this quarter, at an average Brent oil price of $52 per barrel.

This was complemented by good cash contributions from the company's growing Integrated Gas business and from Downstream.

"This competitive performance is further evidence of Shell's growing momentum, and strengthens my firm belief that our strategy is working," said van Beurden.

StockMarketWire.com
Royal Dutch Shell's net earnings attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, rose by 42% to $5.322 billion in the first quarter.

Royal Dutch Shell chief executive officer Ben van Beurden said strong earnings were underpinned by higher oil and gas prices, the continued growth of the integrated gas business, and improved profitability in the upstream business.

Less favourable refining market conditions and lower contributions from trading impacted the earnings of the downstream business.

The dividend per share has been held at $0.47.

HSBC today reaffirms its hold investment rating on Royal Dutch Shell (LON:RDSA) and raised its price target to 2750p (from 2635p).