Shell PLC (SHEL)

[absolutezero]

I think it will be a litmus test to see if the lunatics are still in charge of the UK energy policy asylum.

Spoiler alert: They are.

[idpickering]

Shell reconsiders its exit from oil field off Shetland

Energy giant Shell is reconsidering its recent decision to pull investment from a large new UK oil field, the BBC understands.

In December, Shell said the economic case - along with possible regulatory delays - meant it was withdrawing from the Cambo oil field, which is 75 miles off the west coast of Shetland.

At the time the price of crude oil was under $70 a barrel.

It has since touched double that price and has consistently been over $100.

Oil prices are volatile because of fears that Russian oil will either be shunned, or cut off.

The desire to reduce European dependence on Russian exports has also made the UK government willing to fast track investment in domestic fossil fuels.

Shell has not yet sold its interests in the field. Sources close to the matter said that, while the company's official position had not changed, it did acknowledge that the economic, political and regulatory environment had changed enormously since the decision was announced just three months ago.

Shell last week resubmitted an application to develop the Jackdaw North Sea gas field - off the east coast of Scotland - having had it turned down in October by environmental regulators.

The company said it had modified the chemical processes involved in the gas extraction to meet regulatory requirements.

The UK government said investment decisions are a commercial matter for the companies involved, but it remains committed to the domestic offshore oil and gas sector as the UK transitions to net zero greenhouse gas emissions.

What does net zero mean?
The UK's North Sea regulator plans later this year to hold the first oil and gas licensing round for new fields since 2020.

Shell's decision last December to pull out of the project was taken two weeks after COP26 - a high profile global climate conference in Glasgow - and was roundly welcomed by environmental campaigners, who described Shell's decision as a hammer blow to the project.

https://www.bbc.co.uk/news/business-60825744

[BullDog]

And the same "environmental" campaigners are presumably absolutely delighted for us to bring LNG from America, Qatar, Australia and other places thousands of miles away. What is it that's so difficult to understand?

Yes, we can all work towards reducing carbon foot print. But substituting domestic UK gas with LNG made with significant CO2 emissions that's transported around the globe with C02 emissions and then regasified with more associated CO2 emissions is a very poor decision to take. Both economically and environmentally as well as leaving us at the mercy of third party governments.

Good luck to Shell if they do manage to increase domestic gas production.

[BullDog]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

[Dod101]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

I was amused to read Ian Cowie's column in the Sunday Times where he is regretting selling Shell. What was the saying? Never sell Shell?

Dod

[simoan]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

I was amused to read Ian Cowie's column in the Sunday Times where he is regretting selling Shell. What was the saying? Never sell Shell?

Dod

Never Sell? Well, the share price has gone nowhere for 15 years and is only back where it is because of a war and a pandemic. Not my idea of a sound investment.

[Dod101]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

I was amused to read Ian Cowie's column in the Sunday Times where he is regretting selling Shell. What was the saying? Never sell Shell?

Dod

Never Sell? Well, the share price has gone nowhere for 15 years and is only back where it is because of a war and a pandemic. Not my idea of a sound investment.

I know that Shell was around £25 as far back as 2014, but cannot go further back than that without a lot of research. I have been thinking about our different views on investments. It all depends what the aim is in holding any particular share I guess. Whilst I am not a HYPer, I do prioritise income over growth as I live off my dividends with only the SP as any other income. (I know the argument about selling shares to created income but do not buy that) and on the whole, Shell has been quite a good provider of dividends, until of course suddenly it wasn't, but dividends seem to be recovering quite well again so I am content to hold.

Dod

[simoan]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

I was amused to read Ian Cowie's column in the Sunday Times where he is regretting selling Shell. What was the saying? Never sell Shell?

Dod

Never Sell? Well, the share price has gone nowhere for 15 years and is only back where it is because of a war and a pandemic. Not my idea of a sound investment.

I know that Shell was around £25 as far back as 2014, but cannot go further back than that without a lot of research. I have been thinking about our different views on investments. It all depends what the aim is in holding any particular share I guess. Whilst I am not a HYPer, I do prioritise income over growth as I live off my dividends with only the SP as any other income. (I know the argument about selling shares to created income but do not buy that) and on the whole, Shell has been quite a good provider of dividends, until of course suddenly it wasn't, but dividends seem to be recovering quite well again so I am content to hold.

Dod

Well, maybe you should spend more time looking at long term charts to see how poor some of your long held "steady" investments have been. Whatever, you do, don't compare them to a low cost S&P500 tracker over the same timescale, that'll make you cry. And yet you've taken on far more risk than if you'd held the tracker. This is the problem with long term holding of very poor companies like Shell; it is the "opportunity cost". I realise some people just do not get it - they cheer each dividend and revel in short term rises in price and yet completely ignore the dreadful long term performance. So this idea of "Never sell Shell" is utter nonsense.

BTW This isn't just a different view on investments. This is the difference between someone who could afford to invest in poor companies because they started out with a lot of money, and someone that couldn't because they didn't. Shell has been a poor investment for the past 20 years and the dividend cut was obviously coming (without hindsight). I only started equity investing 22 years ago and if I'd taken the same approach I'd be working well into my sixties and would still be paying a mortgage instead of retired in my mid 50's with a multi-million pound portfolio and no debts.

This is the basic problem I have with the approach that shall have no name. It is a really poor way to grow wealth and is higher risk than it at first appears.

[absolutezero]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

Mine has not yet appeared in my iWeb account either.

[BullDog]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

Mine has not yet appeared in my iWeb account either.

Worth checking, Mrs BD got hers around 10.50 this morning.

[daveh]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

Mine has not yet appeared in my iWeb account either.

Worth checking, Mrs BD got hers around 10.50 this morning.

Not arrived at HSDL yet, Shell paid me via Crest on time, as did II in my ISA. They have also failed to pay BHP on time, but have paid AZN.

[Dod101]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

I was amused to read Ian Cowie's column in the Sunday Times where he is regretting selling Shell. What was the saying? Never sell Shell?

Dod

Never Sell? Well, the share price has gone nowhere for 15 years and is only back where it is because of a war and a pandemic. Not my idea of a sound investment.

I know that Shell was around £25 as far back as 2014, but cannot go further back than that without a lot of research. I have been thinking about our different views on investments. It all depends what the aim is in holding any particular share I guess. Whilst I am not a HYPer, I do prioritise income over growth as I live off my dividends with only the SP as any other income. (I know the argument about selling shares to created income but do not buy that) and on the whole, Shell has been quite a good provider of dividends, until of course suddenly it wasn't, but dividends seem to be recovering quite well again so I am content to hold.

Dod

Well, maybe you should spend more time looking at long term charts to see how poor some of your long held "steady" investments have been. Whatever, you do, don't compare them to a low cost S&P500 tracker over the same timescale, that'll make you cry. And yet you've taken on far more risk than if you'd held the tracker. This is the problem with long term holding of very poor companies like Shell; it is the "opportunity cost". I realise some people just do not get it - they cheer each dividend and revel in short term rises in price and yet completely ignore the dreadful long term performance. So this idea of "Never sell Shell" is utter nonsense.

BTW This isn't just a different view on investments. This is the difference between someone who could afford to invest in poor companies because they started out with a lot of money, and someone that couldn't because they didn't. Shell has been a poor investment for the past 20 years and the dividend cut was obviously coming (without hindsight). I only started equity investing 22 years ago and if I'd taken the same approach I'd be working well into my sixties and would still be paying a mortgage instead of retired in my mid 50's with a multi-million pound portfolio and no debts.

This is the basic problem I have with the approach that shall have no name. It is a really poor way to grow wealth and is higher risk than it at first appears.

I understand what you are saying and I must say, good for you. I simply do not have the dedication nor the incentive at my stage of life to get too worked up about my investments, provided they do the job. BTW, you should note that I was not advocating 'never sell Shell' Every share is up for sale at the right price. And as you may know I am no advocate of the approach that shall have no name.

Dod

[idpickering]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone. Meanwhile at II, mine was there very promptly yesterday.

Nice to see Shell north of £21 again too.

Mine has not yet appeared in my iWeb account either.

Worth checking, Mrs BD got hers around 10.50 this morning.

Not arrived at HSDL yet, Shell paid me via Crest on time, as did II in my ISA. They have also failed to pay BHP on time, but have paid AZN.

Mine's not arrived in my account held with Halifax yet either.

Ian.

[idpickering]

Further to my last, my Shell dividend has now appeared in my account held with Halifax. Phew.....

Ian.

[Itsallaguess]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone.

Meanwhile at II, mine was there very promptly yesterday.

I've got share accounts with Interactive Investor, AJ Bell, and Halifax, and both AJ Bell and Halifax will sometimes take a working day or two over a given dividend-payment date to finally deposit the cash into those two accounts.

I've found over the years that this usually happens with the same shares, and it's usually the ones that originally declare dividends in non-sterling currencies.

I've never had a completely missed dividend payment though, in any of my three accounts, and I can't recall a dividend going missing for more than two working days either, on the really quite rare occasions that one might be a bit late, so I tend to do a monthly 'health check' on dividend payments and try to fret less about specific 'payment dates', given the well-worn path these things seem to take over the years.

There must have been hundreds of these 'late dividend' discussions over the years, and I cannot ever recall them not turning up within two or three working days, so best to just ride with it, I think...

Cheers,

Itsallaguess

[daveh]

Mrs BD hasn't had her dividend yet at AJ Bell, seems she's not alone.

Meanwhile at II, mine was there very promptly yesterday.

I've got share accounts with Interactive Investor, AJ Bell, and Halifax, and both AJ Bell and Halifax will sometimes take a working day or two over a given dividend-payment date to finally deposit the cash into those two accounts.

I've found over the years that this usually happens with the same shares, and it's usually the ones that originally declare dividends in non-sterling currencies.

I've never had a completely missed dividend payment though, in any of my three accounts, and I can't recall a dividend going missing for more than two working days either, on the really quite rare occasions that one might be a bit late, so I tend to do a monthly 'health check' on dividend payments and try to fret less about specific 'payment dates', given the well-worn path these things seem to take over the years.

There must have been hundreds of these 'late dividend' discussions over the years, and I cannot ever recall them not turning up within two or three working days, so best to just ride with it, I think...

Cheers,

Itsallaguess

Yes with HSDL I normally get most sterling dividends on the payment day or next day ( and that includes Shell as it is paid in sterling). With dividends that are not paid in sterling (VWRL, IAPD, IDVY, EMDV) sometimes they turn up on payment day sometimes up to 3-4 days late. I'd start thinking about contacting HSDL if they were more than a week late, but it hasn't happened yet.

The missing Shell and BHP dividends are there today (and HSDL say they arrived yesterday, which I believe as they have moved into the cash account so I could use them, they must have appeared late yesterday afternoon) so just a day late. Not a big problem.

[BullDog]

Thanks for the feedback. Really, there's nothing so special about II. So, if they can land the Shell dividend in my account for breakfast or brunch, it's quite poor that others can't too. Not the end of the world though, I suppose.

[idpickering]

Shell first quarter 2022 update note.

The prevailing volatility in commodity prices has led to larger ranges in the financial guidance for the quarter. Adjusted Earnings and Adjusted EBITDA updates are provided at a segment level while the CFFO update is provided at a Shell Group level.

This update note follows the 2021 segmentation to enable comparison with the fourth quarter 2021 results. From the first quarter results publication onwards we will align our reporting segments with our Powering Progress strategy and provide additional transparency in our Growth pillar. The Renewables & Energy Solutions business will be reported separately from Integrated Gas. Oil Products and Chemicals will be reorganised into two segments – Marketing and Chemicals & Products. The Shales assets in Canada will be reported as part of the Integrated Gas segment instead of the Upstream segment. There is no impact on a Shell Group level.


For the first quarter 2022 results, the post-tax impact from impairment of non-current assets and additional charges (e.g. write-downs of receivable, expected credit losses, and onerous contracts) relating to Russia activities are expected to be $4 to $5 billion. These charges are expected to be identified and therefore will not impact Adjusted Earnings. Details of the accounting treatment and impact of ongoing developments will be provided at the first quarter 2022 results announcement.

Integrated Gas (including Renewables and Energy Solutions)

Adjusted EBITDA

Production is expected to be between 860 and 910 thousand barrels of oil equivalent per day (kboe/d) driven by maintenance activities, including the planned turnaround of one of the trains at Pearl GTL. The outlook includes ~ 50 kboe/d for the Canadian Shales assets.
LNG liquefaction volumes are expected to be between 7.7 and 8.3 million tonnes.
Trading and optimisation results for Integrated Gas (including Renewables and Energy Solutions) are expected to be higher compared to the fourth quarter 2021.
Underlying Opex, for Integrated Gas (including Renewables and Energy Solutions) is expected to be between $1.7 and $1.9 billion.
Adjusted Earnings

Pre-tax depreciation is expected to be between $1.2 and $1.4 billion.
Taxation charge is expected to be between $700 and $1,100 million.
Renewables and Energy Solutions segment results, which until now have been included in the Integrated Gas results, will be separately disclosed from the first quarter 2022 results announcement. Of the total Integrated Gas (including Renewables and Energy Solutions) Adjusted Earnings, Renewables and Energy Solutions contribution is expected to be between $100 and $600 million.

https://www.shell.com/media/news-and-me ... -note.html

[BullDog]

Thanks. Interesting silence about Prelude fLNG. West Australia offshore regulatory body shut it down and as far I am aware, it remains so. Huge embarrassment to Shell.

[idpickering]

Thanks. Interesting silence about Prelude fLNG. West Australia offshore regulatory body shut it down and as far I am aware, it remains so. Huge embarrassment to Shell.

You're welcome. I agree with your point though. Maybe we'll find out more on 05 May 22 on the results announcement?

Ian.