Shell CEO on Dividend Cut, Debt, Oil Industry `Crisis'

[@smallakam7310]

Entirely reasonable decision explained clearly by a CEO who knows what he's talking about and gives it straight. Borrowing to pay dividend.., only a fool would invest in a company who tries on that strategy

[@mtaracenag]

But absolutely no remorse for the share buybacks in the last years. Ridiculous for a company with cyclical earnings. If they restore the buyback program but not the dividend they would be rewarding short traders and betraying loyal, long-term investors.

[@jameslovering9158]

Listen to 13.00 mark where he honestly says things will change. That's why the dividend was cut and other internal measures like reductions in operating costs and capex. They are addressing the risk ahead, it could be massive.

[@kevn99]

Call me a sucker but I’m impressed and more reassured with Bens honest, straight talk. I’ll add and wait if rds.b dips below $25.

[@Giuseppe_coachgius]

I agree with you, I'd rather prefer the horrible truth that trying to keep shareholders happy to disappoint them later on.

[@gre6821]

They are one of the best moneymaking machines available on this planet for any shareholder.

[@m.k.282]

you are a sucker

[@dividendwave]

at 03:36 how is that remotely a honest explanation for the div. cut? essentially he blames the investors (not buying, therefore the yield being high)

[@Giuseppe_coachgius]

@@dividendwave it doesn't seem to say this at 3:36 does it? It says that with a sell off market cap dropped and as a result greatly the dividend yield was unrealistic, nothing new. What I'm concerned with is how much jet and marine/industrial fuel will actually be sold in the next step after the virus. People is discovering efficient and cheapest way to run business and meetings. Though Shell has already plans action be for electricity. Not sure about the other big oils.

[@HALEIWA7]

I am a prospective investor in Royal Dutch Shell, and for me he hit all the right notes. The economy is in very bad shape from nearly global shuts downs. He obviously cannot guarantee that this company will make it because no one can. But he and his board have shown that they are VERY focused on surviving this bull shit and as such, I will be happy to invest in Shell if I am reasonably sure the market will come back.

[@reneeclark5535]

I pray everyone who reads becomes extremely successful and encounter a kind of blessings that will overcome all your fears, spend less and invest more!!

[@harrisondunckiey1359]

Hell yeah

[@harrisondunckiey1359]

Delightfule😁 i dont know who need to hear this but saving money wont make you a millionaire investing will, so take out some money and invest, but invest wisely

[@oliviatrought614]

Investments are stepping stone to SUCCESS, Investing is what create wealth

[@oliviatrought614]

90% of millionaires right now are investors🤑

[@十-i4j]

@@oliviatrought614 💯💪

[@ArthurMoore-ii8nn]

Dividend cut? YOU'RE KILLING ME BRO!

[@turbofanlover]

Pretty refreshing stuff from this CEO, actually. Kudos to him for his (relative) honesty and openness.

[@tommiel6740]

turbofanlover dutch are always honest. That’s why they’re liked and have traded the seas for centuries

[@id10t98]

Oil producing and refining companies like RDS get barrels of oil for pennies and sell them for multiple dollars and theirs plenty of product available and plenty of stable demand. They will always be around to produce stuff other than motor fuels and will always make plenty of money to pay dividends, in some sort or another. This news is basically a great entry point for someone to get into the stock.

[@julianschmahl8267]

This exactly. Also insiders are buying heavily into the company. Trust the process

[@annacomnena217]

A responsible decision in one sense, but by implicitly suggesting the dividend was safe and failing to issue guidance, he has broken the bond of trust with shareholders.

[@tommiel6740]

Anna Comnena once the warning would have come out, the share prices would have plummeted in the same way. Same outcome.

[@dawoodwaris]

Those who scrounging on dividend should live in the real world.

[@Radnally]

Im sure his compensation is very secure

[@Cultureking_23]

I'd bet he has taken a major cut.

[@Radnally]

@@Cultureking_23 $21M. Secure is getting paid. Not amount.

[@beamboy14526]

Shareholders should vote to cut this man's paycheck by 65%

[@tommiel6740]

The man’s got a contract with terms & conditions. Did you buy a Shell stock with a guaranteed dividend in the terms & conditions? No. So don’t wine. Its all in the game.

[@gre6821]

This company is a money making machine with good leadership. These actions were needed in these circumstances. I will buy shares for the future at these levels. An offer I can't refuse.

[@richardburns8973]

Will RDS cut executive pay 66% ? Will RDS stop buying their stock back ? I sure hope so !!!

[@peterthomas9423]

U hit the nail on the head. Share price drops= management buys shares with wages they dont deserve. Market recovers and they all get a nice coronavirus bonus at the expense of investors

[@tommiel6740]

Ben’s got a contract with terms & conditions. Did you buy a Shell stock with a guaranteed dividend in the terms & conditions? No. So don’t wine. Its all in the game.

[@diogofarias1822]

@@tommiel6740 You're missing the point here...

[@tommiel6740]

Di Fa then explain it to me pls

[@defaultdefault9090]

@@tommiel6740 talking bout a nail

[@askhata9289]

What a times we are living in...

[@BonnieBlue2A]

Askhat A this is not living, this is slavery

[@bradbradman6050]

EPS was nearing the dividend payout it had to be done, other companies did it earlier than shell I expected this. Still like the company still like their quality products and I’ll be looking to ad more shares soon when the price hopefully challenges the recent low price.

[@thematthewlong]

Wont happen, buy now before it hits 40s

[@BonnieBlue2A]

Were the strings of this CEO’s golden parachute cut? Salary, benefit and stock options cut?

[@goddesseddog]

no

[@Giuseppe_coachgius]

Nice analysis here, that makes sense. finance.yahoo.com/news/worry-royal-dutch-shell-plcs-120641274.html

[@krisanderson5636]

@@Giuseppe_coachgius If it was a nice analysis, it wouldn't be on yahoo finance!

[@stillcrazyhaha]

Smart to cut the dividend and avoid impairing the company with bad debt

[@KenechukwuBenAneke]

Good afternoon all. I feel good to be here.

[@willjoyce5013]

I take it as obvious weakness, especially when tankers moving the oil are either holding or raising dividends.

[@jiayangshao4736]

The reason he has to cut is because the earnings of shell and future earnings of shell does not cover that dividend, i still believe Total is a better company, because their break even price for oil with organic cash flow before dividend is lower than 25 dollars of Brent crude , so you can almost certain that in the first quarter even current period is ok for Total, Total 's liabilities are the lowest in oil companies. It is widely considered that French oil company Total has the lowest break even prices for oil in all western oil companies.

[@stijnblom1]

Suncor also has a sub 30$ breakeven price.

[@thomas316]

Glad they took a bleak scenario into account. This is a bleak scenario. 🤷🏻‍♂️

[@Giuseppe_coachgius]

I'm wondering whether other big oil are taking/took or will take into account the bleak scenario?

[@Capeau]

@@Giuseppe_coachgius If not then suddenly all these complaining crybabies will start to boast about how smart they were to buy shell...

[@Giuseppe_coachgius]

@@Capeau we will see in a couple of years though certainly not now

[@Capeau]

@@Giuseppe_coachgius exactly

[@Giuseppe_coachgius]

@@Capeau what's your opinion based on current fundamentals and profitability of green energy?

[@mtaracenag]

No mention at all about share buybacks. A lot of people would like assurance that, if things get better, they will prioritize dividend growth over buybacks.

[@corcorona1076]

this will be the best stock in 2022

[@GoGogurt]

XOM should be doing the same.

[@lydiayuna9155]

I'm glad I invested in Exxon Mobile who still keeps their dividend even in this dire time, the bigger fish always eats smaller fish.

[@tommiel6740]

You’ll find out soon enough

[@Luka-gn9iw]

He makes the right steps. No one really know how long this crisis will last. Dividend stocks also perform worse in contrast to grow stocks. The money is better invested in the energy transition and grow in green energy. This is what investors want to see.

[@TheBooban]

No. I want my dividend! The fool just was burning money to buy back shares and was reckless so we couldnt cover the dividend. Vote to remove this bozo.

[@saedal-tamimi6053]

xom should cut too before it becomes GE

[@rayterrell6442]

Shell screwed up “royally”! Well that does it for me, I’m done with this nasty industry. The only appealing to thing about them was the dividend.

[@PatricksFinanzen]

Exactly!

[@Giuseppe_coachgius]

what about the growing electric sector for them (i.e. home and gas electricity)?

[@gre6821]

I am happy to take your shares at these levels.

[@JodyLeeSchroeder]

@@gre6821 me 2 ..

[@othmarskalitzky3526]

RDS is not an investable company. Shame on CEO. Where is his pay cut ?

[@dividendwave]

at 03:36 "Our dividend yield was at a level that very clearly also signaled to the market that our dividend was seen to be at risk" - this is such a bizarre explanation and almost pathetic in a circular logic. As a dividend investor i find the justification unacceptable. he does go on to make better justifications at the end of the interview and talking of income shareholders, but that quote tainted the interview.

[@tommiel6740]

Man does not beat around the bush. No window dressing. No holding up hands to the FED. Only sensible thing to do in the current situation.

[@johnj8069]

He just pointed out what the market already expected. Whenever a company's dividend yield gets to 7-10% it means that the market doesn't believe the company can keep paying it. I bought RDS at ~$25 for hoping to get 4-5% yield for the next couple of years and hopefully higher a few years from now. When I bought the stock the yield was more than 10% but I never expected to get it.

[@mtaracenag]

@@tommiel6740 I get that it was a necessary move... But was the share buyback program all these years a sensible thing to do? I hope they get rid of it completely. It doesn't make sense for an oil company.

[@dividendwave]

@@tommiel6740 kzbin.info/www/bejne/eYG7qnWfmLOKf6s he did beat around the bush explaining the cut. He ended up saying the yield was high therefore the market saw the risk, so Shell cut it as the market was expecting it. Circular logic

[@harrywissink842]

World class investment case ? BG gas : up to now : a huge failure with consequences RD : every quarter past 4 years bad results No investments that are really future prospective ! ( investing in batteries would have proven far better , huge demand, gas and hydrogen: no demand) So ben is a nice guy but he has to step down ..

[@ErikS-]

I agree. He is one of the worst RDS CEO’s ever. I was shocked when RDS was competing to take over a netherlands based ELECTRICITY company. That whilst its an oil&gas company!

[@VP-wt5dv]

Oil tankers will benefit tremendously.

[@deniskaliberda7599]

Making billions but a buying a good mic......

[@gre6821]

As I said: A money making machine with..good..leadership.

[@ErikS-]

Most important question that is NOT asked: “if oil prices recover, will dividend get back to old level?” My guess is that this dividend lowering is a ploy to get money to acquire electricity companies!

[@tatecraft1361]

“If you ain’t dutch, you ain’t much” - RDS

[@ephapax1]

Tate Craft Lol not many people know that saying.

[@anjopot9951]

Never sell Shell

[@iBANGgears]

Mix the kerosene with the diesel to drop the kerosene supply. I can guarantee you semi truck owners & diesel truck owners will be happy about it. It burns better & has higher lubricity

[@phildurre9492]

even 1/3 dividend is to much, they can still pay higher dividend next year

[@hookybrickshooky9529]

With that dividend cut, Shell suddenly is just another Oli company. Well, let‘s see how shareholders will respond to that.

[@RonSommar]

Good decision.

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@bobleroy1924]

Oh my God. They have made how Many Billions every quarter for decades 4 or 3 ? I do hope they were able to save of those profits. Guess what you will be taxed like All other companies. We need a new source of tax revenue to pay back all this stimulus money. . So get use to only 2 billion every quarter or just sell

[@tommiel6740]

Bob leroy they invest their profits to replenish production and reserves

[@m.k.282]

This guy should be fired. In one action he has destroyed Shell's reputation for reliability. Fund and individual loyalty will go out of the window. The company faces very challenging times ahead. The fact most people here seem to be praising the action just fires my contrarian instinct.

[@khooboobeng2184]

Any plan for a US$120 per barrel? So that we poor nations have to struggle to put money in your pocket.

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@zjcai4330]

wheres your pay cut

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@sayadoomdoomdoom4431]

Cut🤦🤦🤦

[@andreasjanen6617]

A dividend we believe it is ....

[@hyouzanren1846]

Look how clean our air now! We must use this chance and move toward EVs and solar! Let Oil industry died Already!

[@tommiel6740]

EV’s are often coal or gas powered....

[@Capeau]

You can shit all you want on him for cutting your precious dividends, but just think for a moment if he turns out to be right... You'll be all praising him for what he did. He understands you need to adapt to survive. I dont mind being a bit in the red short-term if it results in more certainty long-term in these unsure times. Sadly the market is driven by how other people/the masses react and they react in a verry impulsive short-minded way... so, yeah the stock is dropping at alarming rates now... lets hope it turns out positive for those who hold on (and possibly see an opportunity to buy cheap).

[@h2innovationlabh2il69]

Thank you from 'H2 Innovation Lab' H2IL - innovative technology for a green sustainable hydrogen future.

[@霜田修]

Kasawaki Heavy C-2,schjule Broker-Returns City of Kawasaki.

[@j.dsmith9210]

This interview is a nothing Burger...he's jut saying words for no reason. Forget all that political talk and discuss the outlook and where do they see oil for the next few years..

[@gre6821]

Did you noticed that 30 million Americans are out of work at the moment? There might be something going on in the World. Useless comment.

[@j.dsmith9210]

@@gre6821 tell us what did you learn from his interview?

[@Bradgilliswhammyman]

Chevron kept their dividend Shell up your game.

[@tommiel6740]

Chevron is just plain stupid

[@jillm4406]

this is getting bad the more money that they give out people know the middle their all bad at being real estate agent they're going to raise all the prices for everything and so rent and food is getting ridiculous and they're hoarding things and their properties so yeah

[@jeetendrasahuji7084]

Dharmendra sahu nowgon

[@marjorietench3925]

Horrible move by Shell. I’ll be selling my shares today.

[@thetruth4829]

sell sell sell!!!! The world is ending lol

[@issemxfi]

Thanks for the bargain, I will go and get me some growth stock now....and sell it back to you when the world comes to its senses...

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@Terry-io8ji]

Everyone is “shell shocked “….

[@Terry-io8ji]

Even “Dick Turpin” would be embarrassed…..

[@freedykrueger382]

AZERBAYCAN CRISIS,NO MONEY,RESULT OF CENTRAL BANK ILLEGAL REVOLUTION OF SUPPLY TONNING??? EXAMINATION PROCESSED...?

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@youngpocket7846]

They are worried about numbers on a screen going down when they should be worried that their drilling all of the oil out of the earth that doesn't last forever .

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@eglinton007]

Oil mafia ..

[@viviancrane7046]

The company’s earnings from oil trading in 2020 beat the highest ever net income at Vitol Group, the world’s largest independent trading house, which made a record $2.3 billion in 2019. Vitol has yet to disclose 2020 results. Shell only revealed the earnings from oil trading in its annual report, and left power, natural gas and liquefied natural gas trading out. Analysts suspect it was able to make similar profits from those businesses. The result is a boon to the company amid the energy transition as it leans on its trading prowess to push through less-profitable renewables. 2021 shell disaid to try the Crypto market too Crypto market is very profitable Expert Mary Cartier made a huge profit in Bitcoin investment she's a well verified broker see for yourself brokercheck.finra.org/individual/summary/5538817 Text her on watsapp ⤵️⤵️ [phone]

[@dennisjanda5081]

Some dividend is better than no dividend..Why not have a rotating partial shut down at each refinery to cut production volumes ??..Just Askin' !!

[@PatricksFinanzen]

But why cut 2/3? Why not cut 1/3 now and maybe a bit more later? It sucks!

[@Giuseppe_coachgius]

@@PatricksFinanzen perhaps better safe now than sorry when too late...though it would be nice to have an explicit rationale.

[@lordrisay]

@@PatricksFinanzen more cash to horde and keep on hold so that once the crisis ends they can go on the offensive. The oil major with the biggest war chest will come out the strongest not the one with the smallest.

[@ErikS-]

Sitting there laughing whilst he lowers the dividend, ... ... impacting hugely many peoples livelihoods. Many people depend on the oil dividend for there pension. That the debt load increased so much, has more to do with HOW you invested in past.

[@shmoney4257]

But you know what is going on in the oil industry right now right ?

[@霜田修]

I inpossible Sir.Rechard-Reasn a little Prince Missing Mr.ma Me Hide Tanker One,Souji Prince,Sir.Kerosine YOKOHAMA-Port