The Lemon Fool

OPL 245 – RDS plc informed of DPP preparing to prosecute

We have been informed by the Dutch Public Prosecutor’s Office (DPP) that they are nearing the conclusion of their investigation and are preparing to prosecute Royal Dutch Shell plc for criminal charges directly or indirectly related to the 2011 settlement of disputes over Oil Prospecting License 245 (OPL 245) in Nigeria. As appropriate, we will provide updates as this matter progresses.

https://www.investegate.co.uk/royal-dut ... 0000PC34B/

This from TMF;

A Fool asks: is this 6%-yielding FTSE 100 dividend stock a risk too far?

If City forecasts are to be believed, Royal Dutch Shell (LSE: RDSB) is a share that appears too good to be true.

Looking for strong and sustained profits growth? Tick. The FTSE 100 oilie is expected to keep its recent run of annual bottom-line rises going with chubby gains of 5% in 2019 and 18% next year.

How about decent value? You bet. At current prices, Shell carries a forward P/E ratio of 11.3 times, a figure that sits comfortably inside the widely-regarded value region of 15 times and below.

And what about market-beating dividend yields? Well, City analysts are forecasting the long-maintained yearly payout of 188 US cents per share will continue through to 2020, meaning a gigantic 6.2% yield can be savoured.

https://www.fool.co.uk/investing/2019/0 ... k-too-far/

This from TMF, written by Peter Stephens;

Forget Bitcoin! I think the Shell share price could be a better way to get rich

Low valuation

Shell also seems to offer good value for money at the present time. As mentioned, the oil price has experienced an uncertain period, falling heavily in the final quarter of 2018 before showing strength in the first quarter of 2019. As a result, investors seem to be demanding wider margins of safety for a number of oil and gas majors, with the Shell share price having a P/E ratio of just 9.8. This indicates it could be subject to an upward rerating over the medium term.

In terms of the company’s growth catalysts, it could benefit from continued high demand for oil and gas over the medium term. Although there is a general move towards cleaner fuels across the world, fossil fuels are still expected to form major parts of the energy mix for many years. And with Shell reorganising its asset base through disposals, it could move into a stronger position to maximise its efficiency and overall returns in the coming years.

With the stock having a dividend yield of around 6.1%, it could also offer an appealing income investing outlook. Therefore, now could prove to be the right time to buy, appearing to offer a more favourable risk/reward opportunity than Bitcoin.

https://www.fool.co.uk/investing/2019/0 ... -get-rich/

This from TMF, penned by Alan Oscroft;

Is the Shell share price the bargain of the year?

If I had to choose just one stock to buy today and hold for 10 years, my choice would be easy. There are plenty I like the look of — still can’t see Lloyds Banking Group as anything but undervalued, I reckon AstraZeneca could well be on the cusp of a new growth phase, and forecast dividends of more than 5.5% from National Grid look very tempting.

There are more too, but for me by far the tastiest on the market right now is Royal Dutch Shell.

I don’t yet own any Shell shares, and you’d be quite right to ask me why I haven’t put my money where my mouth is. But the key word is “yet” and I will be buying some as soon as I complete the tortuous process of getting some pension funds transferred.

https://www.fool.co.uk/investing/2019/0 ... -the-year/

Q1 Results; https://www.investegate.co.uk/royal-dut ... 0000PF6C4/

From TMF, penned by Kevin Godbold;

Should I plunge into Shell and collect its 5%+ yield, or is caution needed?

From an investment point of view, the most striking thing about FTSE 100 oil giant Royal Dutch Shell (LSE: RDSB) is its gargantuan dividend yield running at around 5.75%. But the payout has been flat for at least the past five years, and City analysts following the firm don’t expect any improvement in the current trading year or in 2020.

https://www.fool.co.uk/investing/2019/0 ... on-needed/

Management Day 2019: Shell, strongly positioned for the future of energy, provides strategy update and financial outlook to 2025.

Jun 4, 2019
◾Shell refreshes strategy for the energy future as it builds on strong foundation

◾The company is on track to deliver on its 2020 commitments; now increases organic free cash flow outlook to around $35 billion for 2025 at $60 per barrel (real terms, 2016)

◾Shell’s expected cash delivery creates the potential to distribute $125 billion or more to shareholders (dividends and share buybacks) over the five-year period of 2021-2025

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

idpickering wrote:Management Day 2019: Shell, strongly positioned for the future of energy, provides strategy update and financial outlook to 2025.

Jun 4, 2019
◾Shell refreshes strategy for the energy future as it builds on strong foundation

◾The company is on track to deliver on its 2020 commitments; now increases organic free cash flow outlook to around $35 billion for 2025 at $60 per barrel (real terms, 2016)

◾Shell’s expected cash delivery creates the potential to distribute $125 billion or more to shareholders (dividends and share buybacks) over the five-year period of 2021-2025

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

Extracts:

By the end of next year, Shell plans to complete its $25 billion share buyback programme (subject to further progress with debt reduction and oil price conditions)...

Shell expects to increase the dividend per share when there is line of sight to the completion of the $25 billion share buyback programme.


End of next year - Dec 2020. I am not expecting any dividend increases for a bit yet.

2nd Quarter 2019 and Half Year Unaudited Results https://www.investegate.co.uk/royal-dut ... 0000PE266/

Shell announces next tranche of share buyback programme https://www.investegate.co.uk/royal-dut ... 0200P6802/

Second Quarter 2019 EUR GBP Equivalent Dividend Payments

https://www.investegate.co.uk/royal-dut ... 63411P2FC9

Shell enhances quarterly disclosures

Royal Dutch Shell plc (Shell) today introduces the publication of a quarterly update, starting with the third quarter 2019. We will additionally publish the quarterly consensus collected for cash flow from operations (CFFO). Jessica Uhl, CFO of Royal Dutch Shell said: “In response to feedback from our investor community we are introducing this new quarterly process. This is a further step in Shell’s ongoing journey to enhance disclosures and increase transparency”.

https://www.investegate.co.uk/royal-dut ... 0000P6250/

I must say I really wonder what these additional disclosures really do for us investors. This at a time when some companies are dropping their quarterly results. 'The investment community' presumably means fund managers who can then scribble even more opinions.

Dod

Dod101 wrote:I must say I really wonder what these additional disclosures really do for us investors. This at a time when some companies are dropping their quarterly results. 'The investment community' presumably means fund managers who can then scribble even more opinions.

Quarterly results, reports and dividends are the norm in the US. Larger UK companies that have a significant number of US investors, and a US listing as both the A and B shares of Royal Dutch have as ADRs, need to provide that level and frequency of information. Or feel they do anyway.

Non-US companies wishing to avoid that can list their ADRs on the pink sheets. Nestles and Siemens do that, for instance.

Thanks Lootman. I had not thought of that. That probably helps explain it.

Dod

https://www.shell.com/investors/financi ... ialresults for general chat. Also posted on HYP Practical for HYPers.

idpickering wrote:https://www.shell.com/investors/financial-reporting/quarterly-results/2019/q3-2019.html#financialresults for general chat. Also posted on HYP Practical for HYPers.

Thanks Ian. Profits down similarly to BP. Their big share buyback programme continues.

Dod

Dod101 wrote:

idpickering wrote:https://www.shell.com/investors/financial-reporting/quarterly-results/2019/q3-2019.html#financialresults for general chat. Also posted on HYP Practical for HYPers.

Thanks Ian. Profits down similarly to BP. Their big share buyback programme continues.

Dod

You're welcome Dod. They're down a bit on market opening, along with BP, although oil's down too.
Shell are my largest holding, but I haven't topped up since early 2016 when I doubled up on them. They remain a portfolio mainstay for me.

Ian.

Reuters article (from Hargreaves Lansdown)

https://www.hl.co.uk/feeds/apps/newsroo ... d=15360963


"uncertain economic conditions could slow its $25 billion share buyback program, the world's largest, after its third-quarter profits easily beat expectations on strong oil and gas trading."

"slowing demand for oil and gas around the world amid trade tensions between the United States and China, the world's two largest energy consumers, could take a toll, Shell said"

"CEO Ben van Beurden said in a statement that Shell's intention to buy back $25 billion of shares by the end of next year remains unchanged."
"
Shell has acquired $12 billion worth of shares since July 2018 and announced on Thursday it had started the next tranche of buybacks of up to $2.75 billion by Jan. 27, 2020."

The lack of a dividend hike at BP and Shell management hinting at a possibly slower pace of share buybacks are suggesting companies are taking a more sober view on the outlook for oil and gas prices"

"Free cash flow, or cash available to pay for dividends and share buybacks, rose to $10.1 billion from $8 billion a year earlier.'

"The Anglo-Dutch company, the world's biggest dividend payer at $16 billion a year, plans to boost payouts to investors through dividends and share buybacks to $125 billion between 2021 and 2025."

($124billion !)

ROYAL DUTCH SHELL PLC THIRD QUARTER 2019 EURO AND GBP EQUIVALENT DIVIDEND PAYMENTS

The Hague, December 5, 2019 - The Board of Royal Dutch Shell plc (“RDS”) today announced the pounds sterling and euro equivalent dividend payments in respect of the third quarter 2019 interim dividend, which was announced on October 31, 2019 at US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”).

Dividends on A Shares will be paid, by default, in euro at the rate of €0.4234 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by November 29, 2019 will be entitled to a dividend of 35.73p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 35.73p per B Share. Holders of B Shares who have validly submitted euro currency elections by November 29, 2019 will be entitled to a dividend of €0.4234 per B Share.

This dividend will be payable on December 18, 2019 to those members whose names were on the Register of Members on November 15, 2019.

https://www.investegate.co.uk/royal-dut ... 4022H7678/

Also posted on HYP Practical for HYPer chat.