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Shell 1st Qtr Results.

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idpickering
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Shell 1st Qtr Results.

#498565

Postby idpickering » May 5th, 2022, 7:14 am

Here'; https://www.shell.com/investors/results ... cument.pdf

Shareholder distributions

Total shareholder distributions in the quarter amounted to $5.4 billion. Dividends declared to Shell plc shareholders for the
first quarter 2022 amount to $0.25 per share, an increase of ~4% over the US dollar dividend for the fourth quarter 2021.
Of the $8.5 billion share buyback programme announced for the first half of 2022, $4.0 billion has been completed as of
May 4, 2022. The remaining $4.5 billion of share buybacks pursuant to the programme are expected to be completed
prior to the announcement of the second quarter 2022 results. With the current macro outlook and subject to Board
approval, shareholder distributions for the second half of 2022 are expected to be in excess of 30% of cash flow from
operating activities


Also posted on Company News here; viewtopic.php?p=498564#p498564

Ex div 19 May 22, paid 27 Jun 22.

Ian.

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Re: Shell 1st Qtr Results.

#498603

Postby funduffer » May 5th, 2022, 10:42 am

Given the huge profits, it looks like Shell are favouring buybacks rather than inflation-matching dividend increases.

Just a 4% increase on December's dividend.

Through a different lens, $0.25 is 44% larger than last June's dividend of $0.1735.

In these inflationary times, I think I expected more, so I am a bit disappointed.

FD

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Re: Shell 1st Qtr Results.

#498619

Postby monabri » May 5th, 2022, 11:41 am

funduffer wrote:Given the huge profits, it looks like Shell are favouring buybacks rather than inflation-matching dividend increases.

Just a 4% increase on December's dividend.

Through a different lens, $0.25 is 44% larger than last June's dividend of $0.1735.

In these inflationary times, I think I expected more, so I am a bit disappointed.

FD


But through my "HYP lens", still significantly lower than 47cents per quarter yet awash with dollars (BP's CEO described business as a "cash machine").

(Thursday morning whinge over.)

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Re: Shell 1st Qtr Results.

#498627

Postby daveh » May 5th, 2022, 12:20 pm

monabri wrote:
funduffer wrote:Given the huge profits, it looks like Shell are favouring buybacks rather than inflation-matching dividend increases.

Just a 4% increase on December's dividend.

Through a different lens, $0.25 is 44% larger than last June's dividend of $0.1735.

In these inflationary times, I think I expected more, so I am a bit disappointed.

FD


But through my "HYP lens", still significantly lower than 47cents per quarter yet awash with dollars (BP's CEO described business as a "cash machine").

(Thursday morning whinge over.)


But presumably headlines of " Shell almost double dividend paid to greedy shareholders" might not play well in the media (and the media might miss out the 'almost' too). Plus are Shell not buying back shares to take out all the shares issued to pay for the gas assets bought from British Gas a few years ago that was planned at the time of the purchase but was stopped when the oil price fell dramatically?

Forgot to add, I was a little disappointed too that the increase wasn't more (an increase in the 10-15% bracket at least) but maybe more to come in subsequent quarters.

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Re: Shell 1st Qtr Results.

#498632

Postby Hallucigenia » May 5th, 2022, 12:49 pm

funduffer wrote:Given the huge profits, it looks like Shell are favouring buybacks rather than inflation-matching dividend increases.


Commodities companies tend to take the view that buybacks offer a more flexible response to potentially one-off increases in commodity prices - the alternative would be to effectively let the dividend track the commodity price, and then you'd get HYP types complaining that they can't sustain a dividend, as the divi would go up and down, all over the place.

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Re: Shell 1st Qtr Results.

#498639

Postby Dod101 » May 5th, 2022, 1:02 pm

funduffer wrote:Given the huge profits, it looks like Shell are favouring buybacks rather than inflation-matching dividend increases.

Just a 4% increase on December's dividend.

Through a different lens, $0.25 is 44% larger than last June's dividend of $0.1735.

In these inflationary times, I think I expected more, so I am a bit disappointed.

FD


Shell announced the current buyback before they announced those profits. The very large programme for buybacks was announced some time back (maybe even before Covid) in order to reduce the number of shares in issue. Most of these were issued at the time of the BG takeover and they always said that they would buy these back at some point. The buyback programme was suspended during Covid and now it is being taken up again, so I do not think you can say that they have decided to disperse the huge profits (your words) via a sudden enthusiasm for buybacks.

Dod

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Re: Shell 1st Qtr Results.

#498648

Postby Dod101 » May 5th, 2022, 1:20 pm

Meant to add that US$5.5 billion of the US$8.5 billion was in any case from the sale of the Permian assets so much of the buyback is unrelated to the current profits.

Dod

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Re: Shell 1st Qtr Results.

#498653

Postby Dod101 » May 5th, 2022, 1:53 pm

I have tracked back and at the time Shell suspended the buyback programme in 23 March 2020, they had bought back US$15.5 billion of the US$25 billion they announced on 26 July 2018 that they intended to buyback. As I said that was mostly as a result of the large number of shares issued at the time of the BG takeover some years earlier.

Obviously they have bought back some more since then but much of those arose from the sale of Permian, so I think we may see buybacks continue for some time yet. It is surprisingly easy to check Shell's RNSs, just time consuming and rather boring.

In summary therefore, I do not think that the current buybacks have much to do with the current profits except that they provide the opportunity to continue with a much broader policy.

Dod


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