Newsexpress place banner advert Yudala Triple Jara Offer
Shell nears another $5 billion in sales

By News Express on 03/02/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 538


Royal Dutch Shell (RDSa.L) is close to selling assets totalling $5 billion to cut debt following its acquisition of BG Group, the oil major said on Thursday as it reported its lowest full-year earnings in more than a decade.

Dealmaking in the oil and gas sector has been muted for more than two years due to collapsing oil prices, but as crude prices recover buyers and sellers are starting to agree on price tags.

For Shell, disposals of $3 billion (£2.38 billion) in the fourth quarter helped shave $4.5 billion off its net debt and increase cashflow by 8 percent in the last three months of the year, Europe's largest oil and gas company said.

And although Shell's fourth-quarter profit was lower than expected at $1.8 billion due to tax impairments and full-year earnings dropped, it still made more money than rival Exxon Mobil (XOM.N) in the second half of the year.

"Others are talking about getting back to growth; we're actually doing it now," Shell's Chief Financial Officer Simon Henry, who leaves next month after seven years in the job, said.

Some of that growth will come from $10 billion of new projects coming on stream by 2018, adding more than 1 million barrels of oil equivalent per day.

Shares in Shell traded 2 percent higher at 1213 GMT, while the industry index (.SXEP) was down 0.1 percent.

Henry said the company was making "significant progress" on another $5 billion of asset disposals, after two divestments worth $4.7 billion this week, including a large part of its North Sea portfolio sold to private-equity backed Chrysaor.

Shell is close to selling its operations in Gabon.

Shell's 2016 capital spending total of $26.9 billion, lower than expected. It stuck to plans to reduce it further in 2017 to around $25 billion. This is at the lower end of the $25-$30 billion range set to run until 2020.

"Management and employees seem to have genuinely changed the way they run the business and appear committed to better employing the capital they manage," said Rohan Murphy, energy analyst at Allianz Global Investors, which holds stock in Shell equivalent to just under 0.5 percent of the company.

Shell's debt to equity ratio fell to 28 percent, down from a high of 29.2 percent in the third quarter due to the cost of its $54 billion BG acquisition last year.

Henry, who said he did not plan to take up a new executive role after leaving Shell, said the company would first remove scrip payments on its dividend before considering any increases in shareholder payouts.

The BG acquisition boosted Shell's reserve replacement ratio to 208 percent in 2016, meaning it more than doubled its reserves. That compares with a ratio of minus 20 percent in 2015.

GREENER INVESTMENTS

Under pressure from shareholders to increase green energy investments, Shell has started to ramp up spending on renewable energy projects, including winning a tender to build an offshore wind farm in the Netherlands.

Chief executive Ben van Beurden said he was keen for Shell to play a "material role" in the renewable energy sector but that spending on its new energies division would be capped at below $1 billion, around four percent of its annual spending budget.

“As we learn we will see how we can ramp that up,” he told journalists. (Reuters)

Source News Express

Posted 03/02/2017 4:26:34 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Nigerian Army detention facilities meet global standard: Red...

First pencil manufacturing company berths in Lagos

Don’t spoil our Yuletide with unsolicited text messages,...

Okiro losses mother

Traders, artisans protest El-Rufai’s planned demolition

Akwa Ibom gov sponsors 100 youths to Israel...

Akwa Ibom Govt. renames major road after Mary...

Buhari vs. Buhari: Yes, Aisha belongs to the...

I sacrificed my senatorial ambition for peace to...

Breaking: EBOLA SCARE HITS ANAMBRA •Hospital cordoned off,...

CHAN Eagles bounce back powerfully, zoom into next...

Saraki’s trial: We’ll meet at the Supreme Court...

 

Latest News Nigeria needs $912m to fight malnutrition NiMET predicts partly cloudy weather, isolated thunderstorm for today South African alleged coup plotter goes on trial NAHCON assures better welfare for pilgrims NAPTIP to adopt whistle-blowing policy to combat human trafficking Nigeria Air Force destroys Boko Haram weapon in Sambisa Forest Military denies Boko Haram resurgence in Northeast CIBN, NBA sign MoU on knowledge-sharing Nnamdi Kanu’s release a welcome development — Peter Obi •Calls for release of other detained Biafra activists CAC extends manual business registration in Abuja, 5 states Nigeria records short supply of Tuberculosis vaccine as Kaduna hosts 7th Africa vaccination week Forex dealers pick only $85.69m out of $100m offered by CBN

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (241,505 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (218,917 views) Shameless Genevieve Nnaji exposes breasts in public (181,560 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (163,811 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (155,165 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (136,066 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (118,956 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (116,992 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (104,809 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (101,620 views) Lagos plane crash: Journalist releases victims’ names (100,067 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (94,510 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (27) Business (2,529) Business Verdict (15) Columnists (672) Complaints & Requests (87) Enterprise & Opportunities (146) Entertainment (309) Features (431) Global Business Monitor (146) International (1,353) Interviews (120) Live Commentary (28) Love Matters (53) News (23,805) Opinion (682) Pidgin (8) Politics (3,671) Religion (522) Sports (1,254) Stock Watch (18) AMA & Al Jazeera Global Update

 

 

CBN Advert

 

Certificate Controversy: Dino Melaye celebrates as Vice Chancellor confirms he graduated...

 

APO Newsbreak logo

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!