Shell gambling still expensive oil, but also seems self-doubt or the price still will rise, says RTL Z stock market commentator Hans de Geus. “If you think that oil prices will rise really, bring you not so sharply back your investment.”
The top executive of Shell, Ben van Beurden, early this year the head put on the chopping block with the acquisition of gas company BG (45 billion euros). Shell is trying to diversify to ride the storm out of cheap oil. To see if the oil will rise in price again, to defeat the competitors. Shell therefore focuses on oil, gas, chemicals and wind energy.
Low oil prices hit Shell hard
shell hit hard by low oil prices. A barrel of oil cost 2 years ago more than 100 dollars, now around $ 40. Net sales last quarter fell 35 percent, from 65 to now $ 48 billion. Shell loses money pumping oil, but selling at the pump and chemicals that made good. The gain is only 7 cents per share, while Shell quarterly 47 cents pays dividends. The blame Shell in the past year meanwhile doubled to $ 73 billion.
Shell is expected to invest approximately 30 billion dollars in 2016, which had previously been assumed approximately $ 33 billion. Investments this year reduced by as much as 36 percent from the level of 2015. The costs are reduced considerably. Shell dismisses before thousands of employees and screw the investment back. Shell also trying to increase efficiency to decline to survive in the difficult oil
Valentijn van Nieuwenhuijzen of ING gives RTL Z For Fair oil price blame the problems at Shell:. “Turnover 35 percent down, and that is reflected in all the oil companies. “
” I wonder what Shell’s future strategy and how long they can still maintain this dividend, “says van Nieuwenhuijzen. “So far they are able to keep costs under control. For now indicates that stability, but for how long?”
A half-hearted strategy
Hans de Geus is the future Shell has not become clearer. “They’re going to reduce investment, so what is the strategy? And then the turnaround for now anyway again to bet on renewable energy.”
According to De Geus, Shell makes its shareholders just nervously hint at their investments in wind turbines: “Power generation with wind turbines really has a totally different business model Perhaps the PR, greenwashing, but for shareholders takes the uncertainty matter because what you buy.?”
Optional for sustainability?
But Shell should not choose much more rigorous sustainability? The climate deal in Paris between 195 countries, to limit global warming would be a great signal for Shell to take the company to throw. The CO2 released should be reduced worldwide by the combustion of fossil fuels.
Big investors such as pension funds begin to stir, and also, for example our own economist Mathijs Bouman urges shareholders to go to the shareholders’ meetings for themselves actively to interfere with the group’s sustainability.
the chamber letter about not limiting gas production in Groningen was certainly not a good example. Nijboer MP (Labour) pitched the Shell lobbyists head and butt out of the room. He finds a ruined shell company.
must intervene Shareholders’
journalist / engineer Mark van Baal, founder of the movement Follow This takes even that shareholders should Shell force no longer invest in fossil fuels, but only in renewable energy. Not in 2030, but now. Across RTLZ Van Baal says: “In 2030, they may be a long way if they start now.”
When asked if they do they go broke anything ?, Of Baal replied: “Yes, they do all that, but they left with much stranded assets. it’s not good, it’s a downward spiral. they can come only if they invest big in renewable energy. “
No word on climate Change
“What is especially striking about the quarterly figures is what is not capable. No word on climate change, stranded assets or renewable energy,” Van Baal continues. “Shell has announced to invest this year $ 30 billion, including in the search and purchase of additional oil and gas reserves, potential stranded assets (carbon bubbles). According to the British think tank bankers CarbonTracker Shell risk 77 billion losing investments in stranded assets in the next 10 years “
” Imagine what would happen if Shell would use billions in investments in the energy sources of the future. in wind farms in the North Sea or solar power plants in the Sahara, “Van Baal his speech.
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