Exclusive extracts from this 24-page-long report:
- Who is the player?
Founded in 1907, Royal Dutch Shell (Shell) is a leading global energy group, with an output of about 1,838 thousand barrels per day of oil and 1,830 thousand barrels of oil equivalent per day of natural gas in 2016. At the end of 2016, Shell's proved reserves consisted of 6.26bn boe of liquids and 40,451bn standard cubic feet of gas [...]
- What are the player's strategies?
Shell will seek to keep capex levels at the lower end of its planned budget, at €22-27bn per year until 2020. Over 2016-18, Shell plans to dispose of non-core positions worth approximately €30bn. This involves exiting 5-10 oil and gas production markets and streamlining downstream operations. Major divestments include: marketing assets in Japan, Denmark and Malaysia, Hong Kong and Macau; non-core petrochemical operations (its 50% stake in the SADAF joint venture in Saudi Arabia); and upstream projects in the UK North Sea, Gulf of Mexico, Canada (disposal of all undeveloped oil sands assets), Gabon onshore interests, and the Bab gas project in the United Arab Emirates. […]
- What are the player's strengths and weaknesses?
Leading positions in deep-water assets (Gulf of Mexico, Brazil, Nigeria, and Malaysia)
Integrated gas operations, strong footprint in LNG
Considerable position in shale in North America and Argentina […]
Negative/low free cash flow from operations over the past few years
General decline in financial performance in line with low oil prices […]
- What is the player's financial position?
The financial indicators included in the report include: Consolidated net revenues, Consolidated operating income and margin, Consolidated net profit and margin, R&D spending and ratio, Sales by segment, Sales performance by segment, Sales by region, Sales performance by region, Profitability ratios, Liquidity ratios, Solvency ratios and Free cash flow and capital expenditure.