Shell: optimistic tone about downstream outlook
(CercleFinance.com) - Royal Dutch Shell said on Wednesday that it was optimistic about its downstream unit's prospects, giving a profitable growth outlook for the division, which it calls "important" in its business model.
At a meeting with investors, Shell reiterated its expectation of an annual organic free cash flow of 6 billion to 7 billion dollars from downstream by 2020, based on a 60-dollar barrel.
The oil giant said that it aims for a free cash flow of between 9 billion and 12 billion dollars by 2025.
The energy group - which believes that it has the most profitable marketing business in its industry - also said it was planning to invest between 7 billion and 9 billion dollars a year in its downstream business.
For this division, Shell targets a return on average capital employed (ROACE) of over 15%.
Shell shares, which are listed on Euronext Amsterdam, are currently up 0.2% this morning after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
At a meeting with investors, Shell reiterated its expectation of an annual organic free cash flow of 6 billion to 7 billion dollars from downstream by 2020, based on a 60-dollar barrel.
The oil giant said that it aims for a free cash flow of between 9 billion and 12 billion dollars by 2025.
The energy group - which believes that it has the most profitable marketing business in its industry - also said it was planning to invest between 7 billion and 9 billion dollars a year in its downstream business.
For this division, Shell targets a return on average capital employed (ROACE) of over 15%.
Shell shares, which are listed on Euronext Amsterdam, are currently up 0.2% this morning after these comments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.