|Bid||2,148.50 x 0|
|Ask||2,150.00 x 0|
|Day's range||2,136.00 - 2,158.00|
|52-week range||3.05 - 2,637.50|
|Beta (5Y monthly)||0.83|
|PE ratio (TTM)||8.56|
|Forward dividend & yield||1.43 (6.66%)|
|Ex-dividend date||14 Nov 2019|
|1y target est||N/A|
Big Oil has faced an onslaught of negative sentiment in recent years as climate activists ramp up their rhetoric, but the supermajors aren’t going anywhere anytime soon
(Bloomberg) -- The world’s largest energy traders enjoyed one of their best ever years in 2019 as pipeline outages, dramatic changes in ship fuel regulations and Middle East conflicts shook up the global oil market.The bonanza extended beyond the independent traders like Vitol Group and Trafigura Group Ltd. to the in-house units of oil giants Royal Dutch Shell Plc, Total SA and BP Plc, which made billions of dollars in profits.“By all accounts, 2019 was among the best years ever for the energy trading industry,” said Marco Dunand, the chief executive of Mercuria Energy Group Ltd., one of the five largest independent oil traders.For the independents, the bumper year all but guarantees a fat bonus season for a group of companies that’s largely owned by their executives and senior staff. For the European oil companies, the trading boom will help Shell, BP and Total to weather a tough year in other parts of their business.In interviews with senior traders and top executives, the consensus is that the industry benefited from a lucky mix of factors in the oil market. Recent investments in trading natural gas, power and liquefied natural gas also started to bear fruit.First, a series of supply outages boosted the premiums that oil refiners pay over the benchmark price for some crudes. Early in 2019, Washington imposed sanctions on Venezuela, disrupting flows. Then, Russian shipments into Europe via the key Druzhba pipeline were halted after oil was tainted with a corrosive pollutant. And in September, Saudi exports were hindered after a terrorist attack against the country’s most important petroleum facility.Some traders also profited from the so-called IMO2020 rules that force the world’s merchant shipping fleet to use fuel with a lower sulfur content. The rules have upended the oil-refining and maritime industries, causing gyrations in the price of fuel-oil and marine diesel.The results provide some breathing room for a sector that’s under assault from falling margins. Brent crude, the world’s most important benchmark, traded in a relatively narrow range of $52.51 to $75.60 a barrel through the year.Vitol, Glencore, Shell, BP and Total all declined to comment on their results.The trend was already clear in the results of Trafigura, which reports earlier than others due to a fiscal year ending in September. Trafigura said its oil unit delivered a record gross profit of $1.7 billion last year.$1 Billion YearElsewhere executives also expect a stellar year, even as they caution that they haven’t yet audited their financial statements or decided on the final writedowns against 2019 results. The oil-trading unit of Glencore Plc., for example, enjoyed its best ever result, according to people familiar with the matter. One person said Glencore expects to report earnings before interest and taxes of more than $1 billion in oil trading.At Gunvor, chief executive Torbjorn Tornqvist said 2019 was “up there among the best years ever” for the trading house, in part thanks to its expansion into LNG, super-cooled natural gas that can be transported by vessel. “We have a good year across the board.”Vitol, the world’s largest independent oil trader, expects to report earnings near $2 billion, one of its best results, according to a person familiar with the matter. Mercuria also enjoyed a “very good year,” its chief executive said.Inside Big Oil, it was also a trading bonanza. Although better known for their oil fields, refineries and pump stations, Shell, BP and Total also run in-house trading businesses that are larger than the better-known independent dealers. Shell alone trades the equivalent of 13 million barrels a day of oil, dwarfing the nearly 7.5 million barrels a day at Vitol.For BP and Shell, 2019 was one of the best years ever in trading, making several billions dollars, according to two people familiar with the matter. Shell alone made at least $1 billion in fuel-oil trading linked to the IMO2020 changes.The results came despite mounting legal and regulatory pressures on some of the biggest trading houses. Glencore is under investigation by the U.S. Department of Justice. Meanwhile, Vitol and Trafigura had their Geneva offices raided by Swiss prosecutors as part of a bribery investigation in Brazil. And Gunvor had to pay $95 million in Switzerland to settle a case that saw a former employee pay bribes to secure oil deals in the Republic of Congo and Ivory Coast.\--With assistance from Andy Hoffman, Jack Farchy, Ronan Martin and Francois de Beaupuy.To contact the reporter on this story: Javier Blas in Davos at firstname.lastname@example.orgTo contact the editors responsible for this story: Will Kennedy at email@example.com, Emma Ross-Thomas, Helen RobertsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
One of Europe’s largest independent oil producers is pledging to become carbon neutral by the end of the decade and will drop “petroleum” from its name as the industry comes under increasing pressure on emissions from investors. in decades, is aiming to reduce emissions from its own operations to zero by 2030, largely by replacing gas turbines that power offshore platforms with renewable electricity from land but also by buying carbon offsets. , Lundin is not giving any targets yet for reducing emissions from when its oil is burnt or used — by far the largest part of greenhouse gas pollution — as it has no refining operations so has little direct influence over how its oil is consumed.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterNigeria’s Economic and Financial Crimes Commission charged Mohammed Adoke, a former justice minister and attorney general, for allegedly taking a bribe to facilitate a $1.3 billion oil deal.The anti-graft body filed 42 charges against Adoke and accused him of receiving a 300 million naira ($831,000) payment from businessman Aliyu Abubakar in relation to the acquisition of Oil Prospecting License 245 in the Gulf of Guinea, the commission said in an emailed statement.Adoke pleaded not guilty to all the charges and the case was adjourned to Jan. 27 when bail applications will be heard, the EFCC said.Abubakar is also being tried alongside other parties, including the local units of Royal Dutch Shell Plc and Eni SpA. The two companies, who deny any wrongdoing, are accused of improperly settling disputes over the oil field.OPL 245 was created in 1998, when then-petroleum minister Dan Etete carved out the offshore license and awarded it to his own company, Malabu Oil and Gas Ltd. Through successive regimes it was taken from him, awarded to Shell, and then given back, locking the companies and government in legal disputes.To win control of OPL 245, Shell and partner Eni paid the Nigerian government $1.1 billion. The companies agree the payment was made, but disagree about whether those funds went to bribes.Read more:To contact the reporter on this story: Tope Alake in Lagos at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Osae-Brown at email@example.com, Hilton Shone, Jacqueline MackenzieFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Zambian economist Dambisa Moyo says it is "naive" to advocate for fossil fuel divestment, days after 17-year-old activist Greta Thunberg called on the world's elite to do so.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.The bosses of some of the world’s biggest oil companies discussed adopting much more ambitious carbon targets at a closed-door meeting in Davos, a sign of how much pressure they’re under from activists and investors to address climate change.The meeting, part of a World Economic Forum dominated by climate issues, included a debate on widening the industry’s target to include reductions in emissions from the fuels they sell, not just the greenhouse gases produced by their own operations, people familiar with the matter said on Wednesday.The talks between the chief executive officers of companies including Royal Dutch Shell Plc, Chevron Corp., Total SA, Saudi Aramco, Equinor ASA and BP Plc showed general agreement on the need to move toward this broader definition, known as Scope 3, the people said, asking not to be named because the session was closed to the press. The executives didn’t take any final decisions.Shell and Aramco declined to comment. Media representatives for Chevron, Total and BP weren’t immediately able to respond to requests for comment. Equinor confirmed its CEO Eldar Saetre attended the meeting.Climate FocusTargeting Scope 3 emissions would be a big shift for an industry that produces the bulk of the world’s planet-warming emissions, once that could eventually require them to sell far less oil and gas. The simple fact that the industry’s top executives were considering it underscored how climate concerns suddenly came into focus in Davos this year.For the first time, environmental risks occupied the WEF’s top five long-term concerns. Business leaders from BlackRock Inc. CEO Larry Fink to Allianz SE boss Oliver Baete used their platform at the event to focus on sustainable investment. The two highest-profile attendees at the forum -- President Donald Trump and climate activist Greta Thunberg -- made headlines as they staked out opposing positions on the issue.The oil and gas executives debated a document produced by the WEF on “neutralizing emissions at the pump,” a reference to the gasoline and diesel sold to customers. There’s an urgent need to shift the industry’s target from production to emissions from end users, said one person.Several companies have already set targets for Scope 1 and 2 greenhouse gases, which come directly from pumping and refining hydrocarbons. Yet these account for less than 10% of total emissions from the life cycle of oil and gas. Some of their pledges have also focused on curbing emissions intensity -- the amount of carbon dioxide released per unit of energy -- which wouldn’t necessarily lead to a reduction in the volume of greenhouse gases produced if a company’s output is growing.Among major energy groups, only Shell, Total and Madrid-based Repsol SA have publicly announced that they are either targeting or monitoring Scope 3 emissions.The Spanish company made the boldest move, promising net-zero emissions in 2050 by diverting investment into wind and solar power. Shell has taken more modest steps, pledging to offset the greenhouse gases produced by fuel sold to drivers on their loyalty-card programs in the U.K. and Netherlands.Eni SpA Chairman Emma Marcegaglia said in a Bloomberg TV interview that the company is committed to becoming carbon neutral on a Scope 1 and 2 basis by 2030. The Italian oil and gas giant is in discussions about Scope 3 emissions, but needs more guidance from the government on how to do so, she said.Other companies, notably U.S. majors Exxon Mobil Corp. and Chevron have so far resisted specific pledges to cut total emissions, with the latter focusing instead on the carbon intensity of the energy it produces. BP CEO Bob Dudley, who retires later this year, has agreed aims for Scope 1 and 2 gases but in the past opposed a Scope 3 target.“We need to reduce our carbon intensity, everyone in the industry agrees on that,” Dudley said in an interview in Davos. However, he cautioned that shareholders and companies were using multiple definitions of Scope 3 emissions. “We need to get a common definition” so the industry “can work together in a powerful way.”(Updates with Aramco comment in fourth paragraph)\--With assistance from Laura Hurst, Francois de Beaupuy, Matthew Martin, Francine Lacqua and Mikael Holter.To contact the reporter on this story: Javier Blas in Davos at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Transaction in Own Shares 22 January 2020 • • • • • • • • • • • • • • • • Royal Dutch Shell plc (the ‘Company’) announces that on 22 January 2020 it purchased the following.
TR-1: Standard form for notification of major holdings NOTIFICATION OF MAJOR HOLDINGS 1a. Identity of the issuer or the underlying issuer of existing shares to which voting.
Big oil has been living beyond its means for years according to a new report from the Institute for Energy Economics and Financial Analysis, with a shortfall of over $200 billion
Shell thinks aviation fuel will be one of the critical growth areas to explore, as ground vehicle transportation fuel and other segments are expected to decline over time
(Bloomberg) -- Royal Dutch Shell Plc is seeking a bigger share of Mexico’s fuel market, even as regulatory changes make it harder for foreign companies to compete.The Anglo-Dutch oil major, which already owns about 200 gasoline stations in 12 states in Mexico, plans to grow its share of the retail fuel market to as much as 15% from 1% now. The company also plans to import more of the fuel it sells in Mexico, the bulk of which it continues to buy from state-owned Petroleos Mexicanos. Today, about 30% of that fuel is imported by train into the state of Guanajuato.“When you think of the market in Mexico we have the chance of being fully integrated,” Murray Fonseca, Shell’s downstream director for Mexico, said in an interview. “If the conditions stay the same, Mexico will become a heartland for Shell.”The company’s investments come as the leftist government of Andres Manuel Lopez Obrador has sought to bolster Pemex’s position in the sector, while dialing back the prior administration’s free-market reforms. Under his government, Mexico has moved to roll back regulations designed to level the playing field against Pemex, and has slowed the process for approving fuel-import permits.$1 Billion InvestmentWhile analysts have raised concerns that the changes could stifle foreign investment, Shell is staying the course.“We’re not thinking about pulling back,” Fonseca said. “As a matter of fact, we’re planning to invest more heavily in 2020 than we did in 2019.”Eventually, Shell expects to produce oil in Mexico, having snapped up 11 blocks in the country’s most competitive offshore oil auctions, and transport it to the company’s U.S. refineries for processing. Shell would then sell the refined product back to Mexicans.The company also aims to have 1,500 service stations open in Mexico over the next five years and is looking to launch its first electric car charging station in Mexico this year, said Fonseca. It plans to invest about $1 billion in the coming decade in service stations and other infrastructure, and aims to double the number of employees in its fuel retail business in Mexico over the next five years.Shell’s plan to boost fuel imports relies on the opening this year of two new terminals in Tuxpan and Tula owned by Mexico City-based Invex, which will bring its product by ship from its Deer Park, Texas, refinery complex on the U.S. Gulf Coast, a joint venture between Shell and PMI, Pemex’s trading arm, and other refineries on the Gulf coast. The company began importing by rail last year.Even so, Mexico’s lack of energy infrastructure and market uncertainties could affect whether Shell succeeds in increasing imports. While foreign companies including BP Plc, Chevron Corp and Exxon Mobil Corp have begun bringing in their own fuel, many gasoline retailers continue to rely on Pemex for the bulk of their supply needs because it owns the vast majority of storage terminals and pipelines.“We need to take a look at it on an almost month-by-month basis,” Fonseca said. “But rest assured, we’re going to increase the supply envelope.”(Adds additional information on Shell’s fuel retail business in eighth paragraph. An earlier version corrected a company statement about the percentage of fuel Shell imports into Mexico, in second paragraph.)To contact the reporter on this story: Amy Stillman in Mexico City at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Jessica SummersFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Shares of newly-listed Saudi Arabian Oil Co., or Saudi Aramco, have suffered on fears of all-out war between the United States and Iran, but there are unique features that should prevent an outright selloff. That's according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar TV in an interview available here. Jannarone explained that […]
NOTIFICATION AND PUBLIC DISCLOSURE IN ACCORDANCE WITH THE REQUIREMENTS OF THE EU MARKET ABUSE REGULATION OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES.