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What do you think of Royal Dutch Shell, Shell $SHEL+1.3% for short, perhaps I would say a bit neglected in this industry.

For brief info: -> 😊

Royal Dutch Shell, one of the largest companies in the world in terms of revenue. It is involved in the production and processing of oil and gas. Shell is incorporated in the United Kingdom and has many offices around the world including Canada, Nigeria and India. The company was founded in London in 1907 as part of a merger between the Royal Dutch Petroleum Company and Shell Transport and Trading Company Limited. The company has full segments ranging from exploration and production of oil, natural gas. It is also involved in the processing of natural gas, gas liquids and other fuels, products. It also owns refining, trading, marketing.

Today, the company said and made shareholders very happy with its outlook. From their cash flow from operations, they intend to lift the distribution to shareholders from 20% of existing to 30-40%. This will mean a dividend increase of an expected 15% starting in the second quarter. They also intend to conduct a share buyback of up to $5 billion in the second half of this year.

"Performance, discipline and simplification will be our guiding principles as we allocate capital to improve distribution to shareholders while enabling the energy transformation," said Shell CEO Wael Sawan. "We will invest in models that work - models with the highest returns that contribute to our strengths," Sawan added

Shell's focus on performance and capital discipline comes as the company seeks to close what many see as a growing valuation gap between European and U.S. oil majors. The British oil major reported record annual profits of nearly $40 billion for 2022. The company also added that capital spending will be cut to $22 billion to $25 billion a year in 2024 and 2025.

SHEL

Shell

SHEL
$71.74 $0.92 +1.30%

Of course, the sector is cyclical, furthermore, it also faces constant environmental pressures from the climate. At the same time, $SHEL+1.3% reiterated its commitment to its climate goals, saying it is making "good progress" toward becoming a zero-emissions business by 2050.

I have the company in my portfolio, bought on the downturn this year, and so far I'm happy with it. We've had news around US companies lately, but I also like this company, it has an impressive history too. What is your opinion and if you have/could you consider buying?


It's a nice company and I've been watching it recently. However, I don't invest much in this sector, so I probably wouldn't buy its stock. But thanks for the update :)

👍 Yeah, I get it. I like mining, but in the future I'm probably thinking of cutting it down to just one of the oil companies and looking more at minerals like lithium and other metals. And what I also struggle with a bit is the ethics of such companies vs the importance, the hunger for raw materials.

Yeah, the ethics thing is also why I don't invest in this industry.

Shelka! I remember her. I went to see her a few times, too. Action is OK for me, but I have bigger competitors:)

Yeah, I'm sure a lot of people here remember her. 😁 For example, what are you looking for?

I like US Chevron. That's a great stock for me.

Good company, but for me, if it's "unethical" then make it worth it. I'd vote for someone else.

Yeah, the ethics in this sector are not very good, it's tough nowadays, where is it? ...even in the big tech sectors and popular brands like Apple etc there is a lot to be said against ethics.

The form is supe, but after they left the Czech Republic there is not much to see here. There are bigger players on the market, but why not. It's not bad.

They are, but this company is also a giant, anyway it's a shame they left the Czech Republic, I don't even know why?

I guess it was a small market. I don't know the exact reason...

Somehow even the information that Shell left the Czech Republic didn't reach me :)

Everybody knows the company, but not much is said about the stock. I think there are much better options in this sector.

Just, well, I haven't heard much about it so I'm interested in opinions. There will be better ones, no doubt, but the news today about the plan is great, I believe it lives up to it. What's not so nice anymore is the info from Victor below, I'll have to load that up

I kind of perceived the society, but I never analyzed it. I just wasn't interested at first glance, that's when I chose CVX for my portfolio.

$CVX+0.8% has nice numbers too and operates all over the world. Definitely also a good pick, I'm still hoping for a bit of $OXY+0.4% recovery in this sector and this $SHEL+1.3% makes me happy so far as I have a lower buy than the current price and the news regarding the outlook has made me happy.

I sold them when I was alerted to their involvement in the killing of civilians in Nigeria which they bailed out of by paying 15.5mio https://www.amnesty.org/en/latest/press-release/2017/11/investigate-shell-for-complicity-in-murder-rape-and-torture/

Oh well, that's not nice news, I haven't seen it anywhere, but I'm not surprised, because no company wants this in plain sight. I'll read the link more closely. Anyway, just in a quick glance I see that this is from earlier years, maybe this has shown up earlier on the price, but I understand the ethics.

Thanks for the information. Even though it's from years ago, it's still horrible.

Do you know if the share price reacted strongly to this news earlier?

I don't know, I guess I could track it down somehow. Unfortunately, I'm under no illusions that this is an isolated case. Mineral extraction is often associated with violence, and it will be no different after the transition to EV where only a different government/commodity will play a role.