Shell: Berenberg confirms buy rating
(CercleFinance.com) - Royal Dutch Shell has reported Q4 2019 adjusted (CCS) net income that is down 48% year-on-year at 2.
93 billion dollars, or 37 cents per share.
Following this publication, Barenberg confirms its buy rating on the share, along with a target of 2800p.
Berenberg says that Shell has announced Q4 results that are 9% below the consensus. Indeed, analysts say, "Integrated Gas was 9% below consensus... while Upstream beat a low consensus figure by 11%".
"Integrated Gas was 9% below consensus, driven partly by higher operating costs in the quarter, partly linked to the new energies business. The company stated that trading and optimisation profitability was average for the quarter.
"Overall, this was a weak set of results, although the underlying operating cash flow was robust at USD12.3bn for the quarter, despite a challenging environment" Berenberg adds.
"The company has announced the next tranche of its buyback programme for USD1bn, having bought back USD2.8bn in Q4. It stated that it still intends to complete the USD25bn programme within the 2020 timeframe, but the pace remains subject to macro conditions and further debt reduction. There are approximately USD10bn of buybacks left to do in 2020 in total to hit the target," it says.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
93 billion dollars, or 37 cents per share.
Following this publication, Barenberg confirms its buy rating on the share, along with a target of 2800p.
Berenberg says that Shell has announced Q4 results that are 9% below the consensus. Indeed, analysts say, "Integrated Gas was 9% below consensus... while Upstream beat a low consensus figure by 11%".
"Integrated Gas was 9% below consensus, driven partly by higher operating costs in the quarter, partly linked to the new energies business. The company stated that trading and optimisation profitability was average for the quarter.
"Overall, this was a weak set of results, although the underlying operating cash flow was robust at USD12.3bn for the quarter, despite a challenging environment" Berenberg adds.
"The company has announced the next tranche of its buyback programme for USD1bn, having bought back USD2.8bn in Q4. It stated that it still intends to complete the USD25bn programme within the 2020 timeframe, but the pace remains subject to macro conditions and further debt reduction. There are approximately USD10bn of buybacks left to do in 2020 in total to hit the target," it says.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.