reports
- Allen Good
Shell Delivers Underwhelming 2Q Results, but Long-Term Targets Remain ...
Best Idea Shell’s second-quarter earnings report proved to be somewhat disappointing, as higher oil prices did not translate into the increase in earnings and cash flow the market was expecting despite reporting strong year-over-year increases. Though the results were received negatively by the market, we do not see them as indicative of future potential. Our fair value estimate and no-moat rating remain unchanged, leaving Shell as one of the most undervalued integrateds. Adjusted earnings for...
- Allen Good
Shell is well positioned for a lower oil price world.
Shell remains a Best Idea in the integrated sector after reporting first-quarter results. Despite strong earnings growth that largely met expectations, shares sold off as cash flow did not increase to the degree that was expected given the concurrent increase in oil prices. While Shell has already delivered on key targets, such as restoring full cash dividend (as of fourth-quarter 2017) and nearly achieving its $30 billion asset divestiture goal ($26 billion completed or announced), for four qua...
- Allen Good
- CFA
Shell’s Cash Flow Generation Disappoints Market, but We’re Not Con...
Shell remains a Best Idea in the integrated sector after reporting first-quarter results. Despite strong earnings growth that largely met expectations, shares sold off as cash flow did not increase to the degree that was expected given the concurrent increase in oil prices. While Shell has already delivered on key targets, such as restoring full cash dividend (as of fourth-quarter 2017) and nearly achieving its $30 billion asset divestiture goal ($26 billion completed or announced), for four qua...
- Allen Good
- CFA
Shell’s Cash Flow Generation Disappoints Market, but We’re Not Con...
Shell remains a Best Idea in the integrated sector after reporting first-quarter results. Despite strong earnings growth that largely met expectations, shares sold off as cash flow did not increase to the degree that was expected given the concurrent increase in oil prices. While Shell has already delivered on key targets, such as restoring full cash dividend (as of fourth-quarter 2017) and nearly achieving its $30 billion asset divestiture goal ($26 billion completed or announced), for four qua...
- Allen Good
- CFA
Shell is well positioned for a lower oil price world.
Shell posted strong fourth-quarter results, with year-over-year increases in earnings for all three of its business segments. Cash flow was light relative to market expectations at $7.3 billion, but we are unconcerned, since the weakness was largely due to increases in working capital and taxes paid, not a deterioration of the operations. An increase in working capital consumed $1.1 billion, while taxes totaled $2.4 billion, due in part to asset sales and settlements that are unlikely to repeat....
- Allen Good
- CFA
Shell has set a course for improvement, but still needs some help from...
At its annual management day, Shell announced it would restore the full cash dividend with the fourth-quarter payment. The decision came earlier than we expected, but is not entirely surprising, as we estimate Shell’s break-even at $50/barrel next year. However, it previously indicated further debt reduction towards its 20% gearing ratio would be a priority, but with gearing at 25% at the end of the third quarter and a subsequent $5 billion in asset sales proceeds, there is a clearer line of s...
- Allen Good
- CFA
Shell has set a course for improvement, but still needs some help from...
At its annual management day, Shell announced it would restore the full cash dividend with the fourth-quarter payment. The decision came earlier than we expected, but is not entirely surprising, as we estimate Shell’s break-even at $50/barrel next year. However, it previously indicated further debt reduction towards its 20% gearing ratio would be a priority, but with gearing at 25% at the end of the third quarter and a subsequent $5 billion in asset sales proceeds, there is a clearer line of s...
- Allen Good
- CFA
Cash Is Back! Shell Restores Full Cash Dividend on Greater Confidence;...
At its annual management day, Shell announced it would restore the full cash dividend with the fourth-quarter payment. The decision came earlier than we expected, but is not entirely surprising, as we estimate Shell’s break-even at $50/barrel next year. However, it previously indicated further debt reduction towards its 20% gearing ratio would be a priority, but with gearing at 25% at the end of the third quarter and a subsequent $5 billion in asset sales proceeds, there is a clearer line of s...
- Allen Good
- CFA
Shell Cash Flow Generation Remains Strong; Raising FVE as It Remains P...
Checking on the key metrics in Shell’s third-quarter earnings report confirms its turnaround remains on track. We have increased our fair value estimate by about 10% following third-quarter results and after incorporating the latest update to our oil price forecast. Our no-moat rating is intact. Free cash flow fell back from the robust levels generated in the second quarter, but the headline figures are misleading, as the key components remain headed in the right direction. Operating cash flow...
- Allen Good
- CFA
Shell has set a course for improvement, but still needs some help from...
With second-quarter results, Shell notched its fourth consecutive quarter of strong cash flow generation and provided further evidence that its turnaround is well underway. Our fair value estimate and moat rating are unchanged, leaving Shell as the most undervalued integrated in our coverage. While concerns about the path of oil prices have probably weighed on shares, the last four quarters have demonstrated Shell’s repositioning to thrive in a lower-price oil environment. During that period, ...
- Allen Good
- CFA
Shell Laying Doubt to Rest With Another Strong Quarter; Remains Prefer...
With second-quarter results, Shell notched its fourth consecutive quarter of strong cash flow generation and provided further evidence that its turnaround is well underway. Our fair value estimate and moat rating are unchanged, leaving Shell as the most undervalued integrated in our coverage. While concerns about the path of oil prices have probably weighed on shares, the last four quarters have demonstrated Shell’s repositioning to thrive in a lower-price oil environment. During that period, ...
- Allen Good
- CFA
Danger Zone: Coming Shale Growth Poses Major Risks to Oil Prices
OPEC's production cuts and strong demand growth have 2017 crude fundamentals in their best shape since oil prices crashed two years ago. The consensus outlook is that fundamentals are now strong enough to remain healthy even after OPEC's cuts lapse. This might have been possible a few months ago, but the odds of this scenario playing out have markedly worsened since. The reason is that major increases in shale activity now have U.S. production firmly on a path of rapid growth, even if rig counts...
- Allen Good
- CFA
Shell’s Earnings Show Little Improvement, but Cash Flow Growth Demon...
Shell reported weak headline fourth-quarter adjusted earnings of $1.8 billion, a modest improvement from 2015 fourth-quarter earnings of $1.6 billion. While the upstream segment returned to profitability, weakness in the integrated gas and downstream segment hampered results. The inclusion of BG’s results continues to muddy the comparison of earnings from prior periods, benefiting the upstream segment with higher production volumes but negatively impacting integrated gas through higher depreci...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.