Shell PLC (SHEL)

[torata]

A fairly muted share price response at Shell with Brent at $100 a barrel and international gas prices pushing northwards

I'm not sure what their exposure is to Nord Stream 2? I know they were one of the five core investors in it. They also have a share in a large Gazprom project in Russia which you can effectively markdown to being worth zero right now. These could be the reasons it is underperforming the increase in oil and gas prices. Then again. what do I know!? I don't follow Shell, just that I read some research yesterday that pointed out the most obvious losers from the Russian invasion.

All the best, Si

Thanks, I doubt Shell have any substantial exposure to Nordstream 2. But they are one of the world's biggest producers of LNG. They also have a large gas trading business. Prices of LNG are usually linked contractually to oil prices and the cherry on the cake for Shell will be the spot cargo shipments that are effectively auctioned to the highest bidder. (Yes, Shell has Sakhalin LNG in the far East. China, Korea and Japan will continue to take all they can get under long term contracts). Should the pipelines crossing Ukraine get blown up, the sky will be the limit on international gas prices. Here's hoping the share price responds from here.

All the best.

BD

I wonder how the Sakhalin projects themselves will play out, especially since Japan has now definitely thrown its hat into the sanctions ring.

torata

[BullDog]

A fairly muted share price response at Shell with Brent at $100 a barrel and international gas prices pushing northwards

I'm not sure what their exposure is to Nord Stream 2? I know they were one of the five core investors in it. They also have a share in a large Gazprom project in Russia which you can effectively markdown to being worth zero right now. These could be the reasons it is underperforming the increase in oil and gas prices. Then again. what do I know!? I don't follow Shell, just that I read some research yesterday that pointed out the most obvious losers from the Russian invasion.

All the best, Si

Thanks, I doubt Shell have any substantial exposure to Nordstream 2. But they are one of the world's biggest producers of LNG. They also have a large gas trading business. Prices of LNG are usually linked contractually to oil prices and the cherry on the cake for Shell will be the spot cargo shipments that are effectively auctioned to the highest bidder. (Yes, Shell has Sakhalin LNG in the far East. China, Korea and Japan will continue to take all they can get under long term contracts). Should the pipelines crossing Ukraine get blown up, the sky will be the limit on international gas prices. Here's hoping the share price responds from here.

All the best.

BD

I wonder how the Sakhalin projects themselves will play out, especially since Japan has now definitely thrown its hat into the sanctions ring.

torata

As far as I am aware, energy and commodities are exempt from any sanctions?

Any how, Japan is very thirsty indeed for LNG and Sakhalin is on their doorstep. The carriers arrive almost like busses in Tokyo bay. Likewise China and Korea. I really don't see any issues longer term with LNG. The world is going to need gas for decades to come.

[BullDog]

Regarding Shell's exposure to Nordstream2, an article today in The Times suggests a $1 billion capital commitment by Shell. Not great but a relative flea bite if they have to write that off. The money is spent, it's gone. I can't see there being any contractual non supply issues. The project hasn't been commissioned and it's a sovereign state that's effectively pulled the plug. Unpleasant for Shell but not as embarrassing or expensive as the issues with Prelude floating LNG.

I would bet that at Sakhalin LNG, it's going to be business as usual for Shell.

For fall out as a result of Ukraine, I think it's far worse for BP. The value of their stake in Rosneft lost ~50% of it's value in one day last week. I don't hold BP. If I did, I would be thinking very hard about it.

[simoan]

Regarding Shell's exposure to Nordstream2, an article today in The Times suggests a $1 billion capital commitment by Shell. Not great but a relative flea bite if they have to write that off. The money is spent, it's gone….

For fall out as a result of Ukraine, I think it's far worse for BP. The value of their stake in Rosneft lost ~50% of it's value in one day last week. I don't hold BP. If I did, I would be thinking very hard about it.

The $1bn is the same as the €950m total commitment I mentioned yesterday. You should really go and read the original RNS from 2017 on the Shell website, not the Times, which is often incorrect on such matters. I don’t believe the money is gone because full drawdown conditions have likely not been met. Besides, Nord Stream AG is a Swiss registered company owned by Gazprom. So any recovery of uncommitted funds will be under Swiss Law.

With regard to BP & Rosneft… you are looking at it incorrectly, and have to remember that the value of the Rosneft holding is determined by the NAV of the oil in the ground, not the share price. There’s no way BP will sell such a large stake on the open market and their will be willing buyers above the current share price, particularly given the current oil price.

All the best, Si

[Breelander]

LONDON, February 28, 2022 – The Board of Shell plc (“Shell”) today announced its intention to exit its joint ventures with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

https://www.investegate.co.uk/shell-plc ... 4037H7777/

[BullDog]

LONDON, February 28, 2022 – The Board of Shell plc (“Shell”) today announced its intention to exit its joint ventures with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

https://www.investegate.co.uk/shell-plc ... 4037H7777/

Thanks for the heads up. Undoubtedly massive political pressure brought to bear here. I had thought that with LNG not being a military fuel to any degree and sanctions exempting energy, that Shell would move much more slowly. Obviously the pressure from Downing Street has been immense and irresistible. See what happens to SHEL tomorrow.

[Dod101]

LONDON, February 28, 2022 – The Board of Shell plc (“Shell”) today announced its intention to exit its joint ventures with Gazprom and related entities, including its 27.5 percent stake in the Sakhalin-II liquefied natural gas facility, its 50 percent stake in the Salym Petroleum Development and the Gydan energy venture. Shell also intends to end its involvement in the Nord Stream 2 pipeline project.

https://www.investegate.co.uk/shell-plc ... 4037H7777/

Thanks for the heads up. Undoubtedly massive political pressure brought to bear here. I had thought that with LNG not being a military fuel to any degree and sanctions exempting energy, that Shell would move much more slowly. Obviously the pressure from Downing Street has been immense and irresistible. See what happens to SHEL tomorrow.

Maybe they are just doing the decent thing. Why do you say 'undoubtedly massive political pressure?' In any case they could not just stand by and do nothing after the move by BP.

Dod

[BullDog]

Nice to see Shell share price being rather resilient, no doubt propped up by multi year oil and gas price highs. Softens the blow from pulling out of the Russian businesses. Hopefully business as usual, though a war induced recession across the world won't help medium term prospects.

[idpickering]

Shell Is Said to Continue Purchasing Russian Oil and Gas.

Shell Plc, Europe’s largest oil company, is continuing to purchase oil and gas from Russia in the wake of the country’s invasion of Ukraine, according to a person briefed on the matter.

The company is in discussion with governments and will comply with any changes in regulations, the person said.

Those decisions may help calm an oil trading and shipping market that’s become anxious about touching Russian barrels for fear of a sanctions backlash following the invasion. The person didn’t go into details about specifics of purchases, such as whether it applies only to existing business or new trades as well.

https://uk.news.yahoo.com/shell-said-co ... _qC5LiHer_

To be honest, I'm surprised that Shell are doing this, in the current climate with regards to the Ukraine invasion matter.

Ian.

[vandefrosty]

Shell Is Said to Continue Purchasing Russian Oil and Gas.
...
https://uk.news.yahoo.com/shell-said-co ... _qC5LiHer_

To be honest, I'm surprised that Shell are doing this, in the current climate with regards to the Ukraine invasion matter.

Ian.

I wonder if this is linked to long-term commitments from Shell gas trading entities (likely domiciled outside of Russia) to lift LNG from Sakhalin Island, and similar commitments to supply LNG to customers in Korea, Japan and China. Those obligations won't immediately disappear just because Shell is exiting the Russian joint-ventures, though I figure they can/will be negotiated away with time and effort.

It's also interesting, and so far uncommented here, that Jessica Uhl is stepping down as CFO from the end of March.
https://www.shell.com/media/news-and-me ... hange.html

Greg

Disclosure - former Shell employee, though not on Russian projects nor in gas marketing.

[idpickering]

Shell Is Said to Continue Purchasing Russian Oil and Gas.
...
https://uk.news.yahoo.com/shell-said-co ... _qC5LiHer_

To be honest, I'm surprised that Shell are doing this, in the current climate with regards to the Ukraine invasion matter.

Ian.

I wonder if this is linked to long-term commitments from Shell gas trading entities (likely domiciled outside of Russia) to lift LNG from Sakhalin Island, and similar commitments to supply LNG to customers in Korea, Japan and China. Those obligations won't immediately disappear just because Shell is exiting the Russian joint-ventures, though I figure they can/will be negotiated away with time and effort.

It's also interesting, and so far uncommented here, that Jessica Uhl is stepping down as CFO from the end of March.
https://www.shell.com/media/news-and-me ... hange.html

Greg

Disclosure - former Shell employee, though not on Russian projects nor in gas marketing.

Thanks for your input, and for sharing your inside knowledge with you having worked for Shell.

Ian.

[idpickering]

Shell Starts to Limit Sales of Heating Oil in Germany

Shell Plc is limiting sales of heating oil to some wholesalers in Germany, the latest sign of how Russia’s invasion of Ukraine is causing chaos in the European energy market.

The reduction in spot sales by Europe’s largest oil company is aimed at ensuring it can continue to meet contractual obligations after Russia’s invasion of Ukraine caused massive distortions and shortages in energy markets, Shell told the buyers of heating oil and other fuels in an email seen by Bloomberg. Shell could stop selling at some delivery points, it said.

https://uk.finance.yahoo.com/news/shell ... 19036.html

[Dod101]

It's also interesting, and so far uncommented here, that Jessica Uhl is stepping down as CFO from the end of March.
https://www.shell.com/media/news-and-me ... hange.html

Greg

Disclosure - former Shell employee, though not on Russian projects nor in gas marketing.

I cannot say that I find the change of CFO as particularly interesting. There seems a good reason (not able to move to London) so why would it be interesting to an investor?

Dod

[lansdown]

Sterling Dividend payment: -
The Board of Shell plc (“Shell”) today announced the pounds sterling and euro equivalent dividend payments in respect of the fourth quarter 2021 interim dividend, which was announced on February 3, 2022 at US$0.24 per ordinary share.

Shareholders have been able to elect to receive their dividends in US dollars, euros or pounds sterling. Holders of ordinary shares who have validly submitted US dollars, euros or pounds sterling currency elections by March 4, 2022 will be entitled to a dividend of US$0.24, €0.2181 or 18.28p per ordinary share, respectively.

[idpickering]

Sterling Dividend payment: -
The Board of Shell plc (“Shell”) today announced the pounds sterling and euro equivalent dividend payments in respect of the fourth quarter 2021 interim dividend, which was announced on February 3, 2022 at US$0.24 per ordinary share.

Shareholders have been able to elect to receive their dividends in US dollars, euros or pounds sterling. Holders of ordinary shares who have validly submitted US dollars, euros or pounds sterling currency elections by March 4, 2022 will be entitled to a dividend of US$0.24, €0.2181 or 18.28p per ordinary share, respectively.

Thanks for that.

Here's the RNS on this;

https://www.investegate.co.uk/shell-plc ... 0509H0557/

Ian.

[Bouleversee]

"The board of Shell PLC (LSE:SHEL, NYSE:SHEL) is facing legal action from the environmental law organisation ClientEarth, which alleges that failure by the oil giant’s directors “to properly prepare the company for net zero” puts them in breach of their legal duties. "

Article from Proactive:
https://www.proactiveinvestors.co.uk/co ... 76724.html

[monabri]

"The board of Shell PLC (LSE:SHEL, NYSE:SHEL) is facing legal action from the environmental law organisation ClientEarth, which alleges that failure by the oil giant’s directors “to properly prepare the company for net zero” puts them in breach of their legal duties. "

Article from Proactive:
https://www.proactiveinvestors.co.uk/co ... 76724.html

ClientEarth is an environmental law charity, with offices in London, Brussels, Warsaw, Berlin, and Beijing. They've had a go at quite a few UK companies, Admiral, Phoenix, Lancashire.

https://en.wikipedia.org/wiki/ClientEarth

David Gilmour ( Pink Floyd) sold his guitar collection for $21m which he donated to Climate Earth.

I wonder how much success they've had in China and Russia?

[Bouleversee]

"The board of Shell PLC (LSE:SHEL, NYSE:SHEL) is facing legal action from the environmental law organisation ClientEarth, which alleges that failure by the oil giant’s directors “to properly prepare the company for net zero” puts them in breach of their legal duties. "

Article from Proactive:
https://www.proactiveinvestors.co.uk/co ... 76724.html

ClientEarth is an environmental law charity, with offices in London, Brussels, Warsaw, Berlin, and Beijing. They've had a go at quite a few UK companies, Admiral, Phoenix, Lancashire.

https://en.wikipedia.org/wiki/ClientEarth

David Gilmour ( Pink Floyd) sold his guitar collection for $21m which he donated to Climate Earth.

I wonder how much success they've had in China and Russia?

Indeed and I wonder how much energy will be consumed and toxicity will be generated by the rebuilding of Ukraine after Putin has finished his demolition project.

[idpickering]

Shell Vies With Adani, Greenko for Actis’s Sprng Energy

Shell Plc is among the final bidders competing to acquire Indian renewable power producer Sprng Energy, people with knowledge ...

https://www.bing.com/news/search?q=Shel ... &FORM=EWRE

[BullDog]

Latest news, Shell is resubmitting it's Jackdaw North Sea gas project to the UK regulators after it was rejected last year. This is going to be very interesting. I think it will be a litmus test to see if the lunatics are still in charge of the UK energy policy asylum.

https://www.energyvoice.com/oilandgas/n ... e-in-2025/