Shell PLC (SHEL)

[idpickering]

Shell reports damage assessment of WD-143 from Hurricane Ida

Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, has conducted a comprehensive damage assessment of our West Delta-143 (WD-143) offshore facilities from Hurricane Ida that revealed significant structural damage. We estimate that our WD-143 “A” platform facilities will be off line for repairs until the end of 2021, and that the facilities on our WD-143 “C” platform will be operational in Q4 2021.

https://www.shell.com/media/news-and-me ... e-ida.html

[Breelander]

Shell signs agreement to sell Permian interest for $9.5 billion to ConocoPhillips

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

https://www.investegate.co.uk/royal-dut ... 3522H8084/

[Gengulphus]

Shell signs agreement to sell Permian interest for $9.5 billion to ConocoPhillips

The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.

https://www.investegate.co.uk/royal-dut ... 3522H8084/

As a likely-looking part of the background to this, I happen to have read an article with the title "Methane Hunters" in the September 2021 issue of Scientific American recently. It was about the issue of methane being emitted into the atmosphere because of (among other causes) leaks of natural gas (which at least very largely consists of methane) - methane being a powerful greenhouse gas, many times more powerful than carbon dioxide though with the mild redeeming feature that it gets removed from the atmosphere a bit more quickly by natural processes (only a mild one though, because it still takes decade to be removed).

The connection is that the article commented in particular on the Permian Basin, an oil & gas producing region in the US states of Texas and New Mexico which it says contains hundreds of thousands of abandoned wells and pipeline sections which are likely to leak methane if they weren't sealed properly or their seals decay. It sounds like an environmental litigation time bomb to me - and assuming the 'Permian interest' the RNS talks about is Shell's interests in that region, the size of the deal makes it sound highly unlikely to me that it doesn't include a substantial part of that time bomb.

So offloading it onto ConocoPhillips sounds like a smart business move to me - albeit one that might be seen as evading the company's environmental responsibilities...

Gengulphus

[idpickering]

Shell third quarter 2021 update note

The following is an update to the third quarter 2021 outlook. Impacts presented may vary from the actual results and are subject to finalisation of the third quarter 2021 results, published on October 28, 2021. Unless otherwise indicated, all outlook statements exclude identified items.

Hurricane Ida in the US Gulf of Mexico had an impact on our operations and is expected to have an aggregate adverse impact of around $400 million on Adjusted Earnings and CFFO in the third quarter 2021. Individual segmental impacts on Adjusted Earnings are further detailed below.

Integrated Gas

Adjusted EBITDA
•Production is expected to be between 890 and 950 thousand barrels of oil equivalent per day.
•LNG liquefaction volumes are expected to be between 7.0 and 7.5 million tonnes, reflecting feedgas constraints and additional maintenance.
•Trading and optimisation results are expected to be higher compared to the second quarter 2021.
•Underlying Opex is expected to be similar to the second quarter 2021.

Adjusted Earnings
•Pre-tax depreciation is expected to be between $1.3 and $1.4 billion.
•Taxation charge is expected to be between $500 and $900 million.

Cash flow from operations
•CFFO excluding working capital is expected to be significantly impacted by large variation margin inflows on the back of the prevailing gas and electricity price environment; these inflows are expected to be higher than the second quarter 2021.
•Tax paid is expected to be between $200 and $400 million.

https://www.investegate.co.uk/royal-dut ... 0000H1196/

[idpickering]

Third Point Has Big Shell Stake, Urges Energy Giant to Break Up

Daniel Loeb’s Third Point LLC has taken a large stake in Royal Dutch Shell RDS.A 1.44%▲ PLC and is urging the oil giant to separate into two companies to retain and attract investors as many flee stocks seen as environmentally unfriendly.

The activist’s stake is worth well over $500 million, making it one of the Anglo-Dutch company’s largest investors, people familiar with the matter said.

Third Point believes Shell should consider creating two stand-alone companies: one with legacy businesses such as refining that would provide steady cash flow and another that houses renewables and other units requiring substantial investment, it said in a letter to its investors Wednesday that was viewed by The Wall Street Journal. It reasons that doing so would clarify the company’s strategy and appeal to different sets of investors who have been making competing demands of Shell.

https://www.wsj.com/articles/third-poin ... 1635349151

[Bouleversee]

All these companies splitting into two or being advised to is a bit of a pain. I already have far too many holdings, sometimes duplicated in different Isas, to keep track of. How many more on the cards?

[Arborbridge]

All these companies splitting into two or being advised to is a bit of a pain. I already have far too many holdings, sometimes duplicated in different Isas, to keep track of. How many more on the cards?

It seems the in the nature of capitalism. People empire build through takeovers and mergers: then corporations become topheavy and split apart. Am I too cynical in thinking that the driving force is group of men (they are mainly men) who want to enrich themselves by this process? or is it just a natural and unavoidable impetus built into the system which is drives this?

I've seen very many corporations and conglomerates come and go, and I expect it will always happen for as long as our form of capitalism exists.


Arb.

[Lanark]

Third Point Has Big Shell Stake, Urges Energy Giant to Break Up

Daniel Loeb’s Third Point LLC has taken a large stake in Royal Dutch Shell RDS.A 1.44%▲ PLC and is urging the oil giant to separate into two companies to retain and attract investors as many flee stocks seen as environmentally unfriendly.

The activist’s stake is worth well over $500 million, making it one of the Anglo-Dutch company’s largest investors, people familiar with the matter said.

Third Point believes Shell should consider creating two stand-alone companies: one with legacy businesses such as refining that would provide steady cash flow and another that houses renewables and other units requiring substantial investment, it said in a letter to its investors Wednesday that was viewed by The Wall Street Journal. It reasons that doing so would clarify the company’s strategy and appeal to different sets of investors who have been making competing demands of Shell.

https://www.wsj.com/articles/third-poin ... 1635349151

Or to put that another way: Allow us to take the profits from today's dirty energy, and let some other sucker pay for the investment needed for a greener future.

A terrible idea which hopefully doesnt go anywhere.

[Dod101]

Third Point Has Big Shell Stake, Urges Energy Giant to Break Up

Daniel Loeb’s Third Point LLC has taken a large stake in Royal Dutch Shell RDS.A 1.44%▲ PLC and is urging the oil giant to separate into two companies to retain and attract investors as many flee stocks seen as environmentally unfriendly.

The activist’s stake is worth well over $500 million, making it one of the Anglo-Dutch company’s largest investors, people familiar with the matter said.

Third Point believes Shell should consider creating two stand-alone companies: one with legacy businesses such as refining that would provide steady cash flow and another that houses renewables and other units requiring substantial investment, it said in a letter to its investors Wednesday that was viewed by The Wall Street Journal. It reasons that doing so would clarify the company’s strategy and appeal to different sets of investors who have been making competing demands of Shell.

https://www.wsj.com/articles/third-poin ... 1635349151

Or to put that another way: Allow us to take the profits from today's dirty energy, and let some other sucker pay for the investment needed for a greener future.

A terrible idea which hopefully doesnt go anywhere.

This is a very small shareholding in the scheme of things and i doubt that it will get anywhere. Shell will most likely just brush it off.

Dod

[idpickering]

Shell acknowledges Third Point LLC investor letter

Shell regularly reviews and evaluates the Company’s strategy with a focus on generating shareholder value. As part of this ongoing process, Shell welcomes open dialogue with all shareholders, including Third Point. Shell’s Investor Relations team has had preliminary conversations with Third Point and we will engage with them, as we do with all of our shareholders.

Shell set out its Powering Progress strategy earlier this year and its Energy Transition strategy received 89% support of its shareholders at its Annual General Meeting in May.

Shell will release its third quarter results on Thursday October 28th and host a results analyst webcast on Thursday October 28th, at 14:00 BST (15:00 CEST and 09:00 EDT).

https://www.investegate.co.uk/royal-dut ... 5544H4697/

[idpickering]

Royal Dutch Shell plc publishes third quarter 2021 press release

"This quarter we've generated record cash flow, maintained capital discipline and announced our intention to distribute $7 billion to our shareholders from the sale of our Permian assets. Today, we also set a new 2030 target to halve the absolute emissions from our operations, compared to 2016 levels on a net basis. Altogether, this is clear evidence of how we are accelerating our Powering Progress strategy, purposefully and profitably."

Royal Dutch Shell Chief Executive Officer, Ben van Beurden

QUALITY PORTFOLIO DELIVERING RECORD CASH
•Highest ever CFFO excl. working capital of $17.5 billion, supported by outstanding cash generation across the businesses and boosted by commodity derivatives.
•Disciplined cash capex of $13.2 billion in the first nine months; expected to be around $20 billion in 2021.
•Share buybacks of $1.0 billion in Q3 2021 out of a total target of $2 billion in the second half of 2021. Additional shareholder distributions of $7 billion related to the Permian sale to start in 2022, post deal completion.
•An absolute emissions reduction target of 50% by 2030, compared to 2016 levels on a net basis, covering all Scope 1 and 2 emissions under Shell’s operational control.

https://www.investegate.co.uk/royal-dut ... 0200H4763/

Royal Dutch Shell plc third quarter 2021 interim dividend

The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the third quarter of 2021 of US$ 0.24 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

Details relating to the third quarter 2021 interim dividend

Per ordinary share Q3 2021
RDS A Shares (US$) 0.24
RDS B Shares (US$) 0.24

It is expected that cash dividends on the B Shares will be paid via the Dividend Access Mechanism and will have a UK source for UK and Dutch tax purposes.

Cash dividends on A Shares will be paid, by default, in euros, although holders of A Shares will be able to elect to receive dividends in US dollars or pounds sterling.
Cash dividends on B Shares will be paid, by default, in pounds sterling, although holders of B Shares will be able to elect to receive dividends in US dollars or euros.
The pound sterling and euro equivalent dividend payments will be announced on December 6, 2021.

Royal Dutch Shell Plc 2022 Interim Dividend Timetable

https://www.investegate.co.uk/royal-dut ... 0400H4765/

Ian.

[idpickering]

SHELL SETS NEW TARGET TO HALVE SCOPE 1 AND 2 ABSOLUTE EMISSIONS, COMPLEMENTING EXISTING CLIMATE GOALS

Royal Dutch Shell plc (Shell) today announces an absolute emissions reduction target of 50% by 2030, compared to 2016 levels on a net basis. This covers all scope 1 and 2 emissions under Shell’s operational control and is another strategic milestone on our path to becoming a net-zero emissions energy business by 2050, in step with society.

As we play our part in the energy transition, this additional target forms part of our Powering Progress strategy along with our goals to generate shareholder value, respect nature and power lives. This follows ongoing stakeholder engagement since our Annual General Meeting (AGM).

It is also an important step as we rise to meet the challenge of the Dutch Court’s ruling for our scope 1 and 2 emissions, which Shell expects to meet by 2030. Our 2022 business plan will reflect this new target, which we are committed to delivering regardless of whether we win or lose our appeal against the ruling.

Shell also committed to bringing forward its target to eliminate routine gas flaring from its Upstream operated assets from 2030 to 2025.

The company’s Powering Progress strategy, announced in February 2021, provides the capital expenditure and financial return profile outlook for each of Shell’s businesses and the Group. There is no material change expected in these profiles, as the strategy provides the levers necessary to achieve the targets announced today. Any further updates will be provided as part of our Energy Transition Strategy update at the AGM.

https://www.investegate.co.uk/royal-dut ... 0100H4760/

[Dod101]

Royal Dutch Shell plc publishes third quarter 2021 press release

"This quarter we've generated record cash flow, maintained capital discipline and announced our intention to distribute $7 billion to our shareholders from the sale of our Permian assets. Today, we also set a new 2030 target to halve the absolute emissions from our operations, compared to 2016 levels on a net basis. Altogether, this is clear evidence of how we are accelerating our Powering Progress strategy, purposefully and profitably."

Royal Dutch Shell Chief Executive Officer, Ben van Beurden

QUALITY PORTFOLIO DELIVERING RECORD CASH
•Highest ever CFFO excl. working capital of $17.5 billion, supported by outstanding cash generation across the businesses and boosted by commodity derivatives.
•Disciplined cash capex of $13.2 billion in the first nine months; expected to be around $20 billion in 2021.
•Share buybacks of $1.0 billion in Q3 2021 out of a total target of $2 billion in the second half of 2021. Additional shareholder distributions of $7 billion related to the Permian sale to start in 2022, post deal completion.
•An absolute emissions reduction target of 50% by 2030, compared to 2016 levels on a net basis, covering all Scope 1 and 2 emissions under Shell’s operational control.

https://www.investegate.co.uk/royal-dut ... 0200H4763/

Royal Dutch Shell plc third quarter 2021 interim dividend

The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the third quarter of 2021 of US$ 0.24 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

Details relating to the third quarter 2021 interim dividend

Per ordinary share Q3 2021
RDS A Shares (US$) 0.24
RDS B Shares (US$) 0.24

It is expected that cash dividends on the B Shares will be paid via the Dividend Access Mechanism and will have a UK source for UK and Dutch tax purposes.

Cash dividends on A Shares will be paid, by default, in euros, although holders of A Shares will be able to elect to receive dividends in US dollars or pounds sterling.
Cash dividends on B Shares will be paid, by default, in pounds sterling, although holders of B Shares will be able to elect to receive dividends in US dollars or euros.
The pound sterling and euro equivalent dividend payments will be announced on December 6, 2021.

Royal Dutch Shell Plc 2022 Interim Dividend Timetable

https://www.investegate.co.uk/royal-dut ... 0400H4765/

Ian.

3rd Quarter Dividend remains at US$0.24 and is payable on 20 December. Hopefully we can expect an increase in the final for the year if things continue as they are going?

Dod

[idpickering]

Shell seeks shareholder approval to change Articles to implement a simplified structure

•Shareholders are asked to vote on a special resolution to amend the Royal Dutch Shell plc Articles of Association to allow the simplification of the company’s structure

•Virtual and physical attendance and participation enabled for the General Meeting (“GM”)
•Shareholders encouraged to submit their proxies in advance of the GM, but voting is enabled during the meeting

Today, Royal Dutch Shell plc (“Shell”) posted a circular which includes the notice of its GM (the “Circular” and the “Notice”), which can be viewed and downloaded from http://www.shell.com/gm. The Notice states that the GM is scheduled to be held at Rotterdam Ahoy, Ahoyweg 10, 3084 BA Rotterdam, the Netherlands at 10:00 (Dutch time) on Friday December 10, 2021.

Shell proposes simplified structure
•Proposal will establish a single line of shares to eliminate the complexity of Shell’s A/B share structure.
•Proposal will also align Shell’s tax residence with its country of incorporation in the UK, where it will hold Board and Executive Committee meetings, and locate its chief executive and chief financial officer.

The Hague, November 15, 2021 − The Board of Royal Dutch Shell plc (Shell) today announced a proposal to simplify the company’s share structure to increase the speed and flexibility of capital and portfolio actions. The simplification is designed to strengthen Shell’s competitiveness and accelerate both shareholder distributions and the delivery of its strategy to become a net-zero emissions business.

Shell’s Chair, Sir Andrew Mackenzie, said: “At a time of unprecedented change for the industry, it’s even more important that we have an increased ability to accelerate the transition to a lower-carbon global energy system. A simpler structure will enable Shell to speed up the delivery of its Powering Progress strategy, while creating value for our shareholders, customers and wider society.”

Under the proposal announced today, Shell intends to change its share structure to establish a single line of shares, which is simpler for investors to understand and value. The company will also align its tax residence with its country of incorporation in the UK.

https://www.investegate.co.uk/royal-dut ... 0000H8240/

[Dod101]

That will presumably miff the Dutch and will be a fillip for the UK even if mostly cosmetic I assume. I do not know what the effect will be of changing the tax residency to the UK. But one class of share seems the right way to go. The new chairman seems to be in the business of tidying up company share structures having been CEO of BHP before becoming the Shell chairman. Pity they are losing the 'Royal' nomenclature even if it was named after the Dutch Royal family.

Dod

[88V8]

That will presumably miff the Dutch and will be a fillip .... The new chairman seems to be in the business of tidying up company share structures

I had to give you a rec for 'miff' and 'fillip' in the same post
I hope the new broom does not try to retire their Preference shares, although this is perhaps not the right board to say so.

One wonders how much of a recovery we can expect in the divi. A commentator on the wireless this morning was comparing the oilies to the water cos, in that the water cos are responsible end to end for their product, the cleanliness of the water to the cleanliness of the sewage or perhaps irresponsible in the case of the sewage, but anyway, he was comparing this to the oilies where they sell the product and the waste is then dumped into the atmosphere.

This is not a terribly good analogy as the oilies have no control over use or disposal, but he was suggesting that the oilies should offset themselves by carbon capture. Which of course might be a good thing but jolly expensive.
In practice, on a day when China alone mined 12,000,000 tons of coal, the notion of capture on that scale seems comical, but if govts are looking for someone to blame and pay for cleanup, the concept of producer pays might be dusted off again.

And the oilies don't help themselves when they are still flaring gas, seems almost unbelievable really.

If this sort of thinking does takes root it might be good for the planet, but not so good for shareholders, even though they mostly live on the planet of course.

V8

[ADrunkenMarcus]

The name had already been Anglicised by calling the old company 'Royal Dutch Shell' rather than 'Koninklijke Nederlandse Shell'. (Note that you do not pronounce the second i in 'Koninklijke' - the end of this word sounds more like 'luck' in English.)

Best wishes


Mark.

[Dod101]

The name had already been Anglicised by calling the old company 'Royal Dutch Shell' rather than 'Koninklijke Nederlandse Shell'. (Note that you do not pronounce the second i in 'Koninklijke' - the end of this word sounds more like 'luck' in English.)

Best wishes


Mark.

Well of course when they merged the Dutch company and Shell Transport and Trading the new holding company was named Royal Dutch Shell PLC presumably because it was incorporated in the UK. I suppose, to appease the Dutch they left the Corporate HO and tax residency in the Netherlands, hence the rather clumsy A and B shares to cope with the Dutch with holding tax.

Now the share structure is being simplified with the tax residency being changed to the UK and the CEO and CFO moving to London. Coming on the heels of the Unilever change that is surely good for the UK.

Dod

[ADrunkenMarcus]

The Dutch Minister-President (PM) used to work for Unilever. He was rather annoyed!

Best wishes

Mark

[idpickering]

Well of course when they merged the Dutch company and Shell Transport and Trading the new holding company was named Royal Dutch Shell PLC presumably because it was incorporated in the UK. I suppose, to appease the Dutch they left the Corporate HO and tax residency in the Netherlands, hence the rather clumsy A and B shares to cope with the Dutch with holding tax.

Now the share structure is being simplified with the tax residency being changed to the UK and the CEO and CFO moving to London. Coming on the heels of the Unilever change that is surely good for the UK.

Dod

I agree with you Dod. It’s got to be a good thing surely.

Ian.