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Royal Dutch Shell (NYSE: RDS.A), the European energy-integrated company, announced a strong improvement in its financial performance in the first quarter, driven by higher prices in its activities upstream. In addition, the company's efforts to reduce its operating and capital costs are expected to increase its financial results for the year. In the future, Shell will continue to focus on the delivery of its new projects, which are likely to generate long-term value.
We valued the price of $ 67 per share for Royal Dutch Shell, which corresponds to its current market price. Check out our interactive Shell dashboard and modify the key factors to see how they affect its valuation.
Highlights of 2Q18 results
- Shell's upstream production increased by 2% (excluding badet sales). This, coupled with higher prices, pushed the business upstream business figure by more than 29% to $ 2.3 billion. In addition, liquefied natural gas activities have seen their LNG sales increase due to the increased volumes of the Gorgon LNG project.
- Shell has achieved $ 27 billion in badet sales since 2016 , $ 3 billion and $ 4 billion. pipeline. This has enabled the company to achieve its $ 30 billion divestment target by the end of 2018.
- Shell plans to limit its annual capital investment from $ 25 billion to $ 30 billion. over the next three to four years. If commodity prices recover more quickly than expected, the company plans to cap its investments at $ 30 billion and use cash surpluses to accelerate the reduction of its debt.
- The company announced two major discoveries in the Gulf of Mexico: Whale and Dover. In addition, the company has been successful in recent calls for tenders in Brazil, Mexico and Mauritania.
- In addition, the company announced a $ 25 billion stock repurchase program. and the overall recovery in oil prices. Although Shell can only buy back shares after meeting its debt reduction and dividend payment requirements, the company is willing to use its cash surplus to reinstate its share buyback program. which is good for its shareholders.
- solid portfolio of projects that have become operational or should be commissioned soon. These new projects are expected to produce more than 1 million barrels of oil equivalent per day and contribute up to $ 10 billion by the end of 2018 and $ 15 billion by the end of 2020. The company noted that It was on track to achieve these goals.
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