|Bid||1,223.80 x 0|
|Ask||1,224.80 x 0|
|Day's range||1,204.00 - 1,355.80|
|52-week range||8.89 - 2,647.00|
|Beta (5Y monthly)||1.35|
|PE ratio (TTM)||6.31|
|Forward dividend & yield||1.48 (5.79%)|
|Ex-dividend date||16 May 2019|
|1y target est||36.11|
Equinor will leave industry lobby group the Independent Petroleum Association of America (IPAA) over a disagreement about climate policy, the energy producer said on Friday. The Norwegian company is undertaking a review of its memberships of industry associations under an agreement with a group of institutional investors, the Climate Action 100+, signed last April. The Washington-headquartered IPAA represents thousands of independent oil and natural gas producers and service companies across the United States.
The oil industry has been hit by a simultaneous demand and supply shock in March as the coronavirus pandemic cuts fuel consumption and top producer Saudi Arabia raises output to full capacity to fight a price war with rivals. International crude oil prices have lost about 45% this month and fallen below the cost of much of the world's production, causing energy companies worldwide to slash spending by tens of billions of dollars. The collapse in demand and of energy diplomacy between Saudi Arabia, Russia and others have triggered unprecedented responses from governments and investors.
Is Royal Dutch Shell and its huge dividend yield too good to miss? Royston Wild isn't convinced.The post I’m avoiding FTSE 100 stock Shell and its 10% dividend yield, as $10 oil is predicted appeared first on The Motley Fool UK.
China is buying a record 1.6 million tonnes of Russian oil for loading at sea over the next four weeks, taking advantage of rock bottom prices for Russia's flagship Urals grade combined with a collapse in demand in Europe, traders said on Wednesday. The volumes make for a new monthly record of Urals supply to China after they surpassed 1.2 million tonnes in January. The deliveries could also indicate China is using the collapse in oil prices to fill its strategic reserves.
China is buying a record 1.6 million tonnes of Russian oil by sea loading in the next 2-3 weeks, taking advantage of rock bottom prices for the Russian grade combined with a collapse in demand in Europe, traders said on Wednesday. The volumes make for a new monthly record of Urals supply to China after they surpassed 1.2 million tonnes in January.
The world's biggest oil and gas companies are slashing spending this year following a collapse in oil prices driven by a slump in demand because of coronavirus and a price war between the top exporters Saudi Arabia and Russia. Cuts already announced by seven major oil companies including Saudi Aramco and Royal Dutch Shell come to a combined $25 billion, or a drop of 20% from their initial spending plans of $127 billion. Others such as U.S. giant Exxon Mobil Corp and Britain's BP have said they will cut capital expenditure but haven't given specific figures as yet.
The world's biggest oil and gas firms should break an industry taboo and consider cutting dividends, rather than taking on any more debt to maintain payouts as they weather the fallout from the coronavirus pandemic, investors say. The top five so-called oil majors have avoided reducing dividends for years to keep investors sweet and added a combined $25 billion to debt levels in 2019 to maintain capital spending, while giving back billions to shareholders. Oil prices have slumped 60% since January to below $30 a barrel as demand collapsed because of the pandemic and as a battle for customers between Saudi Arabia and Russia threatened to flood the market with crude.
Even the 'Big Oil' companies don's seem to be immune to this price crash as evidenced by spending cuts by supermajors Royal Dutch Shell (RDS.A) and TOTAL S.A. (TOT).
Apart from bridling costs, Shell (RDS.A) puts its $25- billion share buyback plan on the back burner to survive the current oil price distress.
Oil markets are at a critical turning point, with demand plummeting and low prices forcing shale producers into a corner
Shell became the latest oil major to announce significant spending cuts to protect its balance sheet from crashing oil prices, joining other majors such as Exxon in the drive to optimize costs at oil below $30 a barrel
Spending on new oil and gas projects could fall by more than two thirds this year if oil prices remain at the current levels, the Oslo-based Rystad Energy consultancy said on Monday. Crude oil prices dropped more than 60% since the start of the year as demand fell due to travel and business restrictions to stem the spread of the coronavirus, while Russia and Saudi Arabia ended an agreement to curb production. North Sea oil was trading at $25.7 a barrel by 1533 GMT on Monday.
(Bloomberg) -- Europe’s Big Oil is curbing investor returns and taking the ax to spending as the market crash hammers earnings.Energy companies were just emerging from a previous slump that left them with burgeoning debts and reduced investment programs, only to walk into another downturn that has pushed crude prices to the lowest in almost two decades. Chief executives are potentially facing their biggest challenge yet with the market outlook remaining bleak.Royal Dutch Shell Plc became the latest to join the list on Monday. Europe’s biggest oil company won’t continue with the next phase of its share buyback program, following similar steps by Italy’s Eni SpA, Norway’s Equinor ASA and French major Total SA. The companies, long the bastion of predictable shareholder paybacks, also pledged major spending reductions.Shell said it was taking “immediate steps to ensure the financial strength and resilience” of its business. While the company is not abandoning its buyback entirely, completion of the program is “not likely to be feasible before the end of 2020.”The move comes as little surprise. Chief Executive Officer Ben van Beurden warned earlier this year that the company would probably miss its repurchase target if the macroeconomic environment didn’t improve. The oil major, which was $10 billion short of its buyback goal at the time, said it wouldn’t buy more than $1 billion in its next tranche.Capex CutThe Anglo-Dutch major sees a reduction in 2020 cash capital spending to no more than $20 billion from the planned $25 billion. It also expects to cut underlying operating costs by between $3 billion and $4 billion over the next 12 months from 2019 levels.The measures are expected to contribute as much as $9 billion of free cash flow on a pretax basis, according to a statement. Shell said it’s still committed to its divestment program of more than $10 billion of assets in 2019-20 but timing depends on the market.The oil market is being hit by the combination of a supply surge as Saudi Arabia and Russia tussle for market share, and virus-induced demand destruction. While policy makers around the world are putting measures in place to protect the economy, oil demand is facing a huge risk with governments enforcing lockdowns in response to the deadly health contagion.Also see QuickTake on Why OPEC-Russia Blowup Sparked All-Out Oil Price WarCompanies everywhere are crimping their plans. Exxon Mobil Corp. is planning a slowdown in its expenditure program, while BP Plc has said it could reduce capital and operational spending by 20% this year.Equinor halted a $5 billion buyback program and said it’s cutting investments, exploration expenses and other costs. Total stopped its repurchasing program, saying the move would save $1.5 billion this year.Swimming against the tide is Russia’s biggest oil producer, Rosneft PJSC. The company said the crude price slump makes buybacks attractive, as it simplified the procedure for its repurchasing program. Rosneft’s stock has fallen below the level that Chief Financial Officer Pavel Fedorov called perfect for the start of repurchases.Protecting the DividendWhile the biggest companies are slashing their budgets, investors are closely following the dividend. Occidental Petroleum Corp. this month cut its payout for the first time in 30 years. Shell and BP consider this metric sacrosanct, and historically have done all they can to protect it.Shell’s Monday announcement made no mention of the dividend. The company is one of the biggest dividend payers in the world and hasn’t cut it since at least the Second World War. But the market is starting to question the affordability of the payout, with the yield above 13% on Monday.RBC analyst Biraj Borkhataria said he believes the company has a big enough balance sheet to survive the current environment, “but if this outlook was to last for more than 9-12 months, we would expect a cut.”Analysts at Redburn were more skeptical, saying that no major will manage to cover the payout organically at $30 oil. “Shell, Equinor, Eni and BP are most at risk of dividend cuts should the current downturn persist,” they wrote in a research note. Morgan Stanley warned last week that slashing spending and buybacks might not be enough to protect Big Oil’s dividends.For 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.
Shell said on Monday it would cut operating costs by up to $4bn, reduce planned spending by $5bn in 2020, and abandon a $1bn share buyback.
Royal Dutch Shell will lower spending by $5 billion (4.3 billion pounds) and suspended its vast $25 billion share buyback plan in an effort to weather the recent collapse in oil prices, it said on Monday. The Anglo-Dutch oil major said it would reduce capital expenditure to $20 billion or below from a planned level of about $25 billion while seeking to reduce operating costs by an additional $3 billion to $4 billion over the next 12 months. The cuts are expected to boost Shell's cash generation by between $8 billion and $9 billion on a pretax basis.