British energy Supermajor Shell plc (NYSE: SHEL ) has performed roughly in line with its peers for 2024, underperforming US majors Chevron and Exxon but coming in well ahead of European peers which saw a ~10-15% share price decline over the year. While this year'sAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. ...

Company Performance - Shell closed at $65.39, reflecting a -1.91% change from the previous day, underperforming the S&P 500's loss of 0.29% [1] - Over the past month, Shell's shares gained 8.64%, outperforming the Oils-Energy sector's loss of 1.71% and the S&P 500's gain of 2.52% [1] Upcoming Earnings - Shell's earnings report is scheduled for January 30, 2025, with projected earnings per share (EPS) of $1.78, indicating a 19.82% decrease from the same quarter last year [2] - The consensus estimate anticipates revenue of $80.1 billion, reflecting a 0.03% decline from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Shell suggest positive near-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has decreased by 3.11% over the last 30 days, and Shell currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Shell's Forward P/E ratio is 9.17, which is a premium compared to the industry average Forward P/E of 9.1 [5] - The company has a PEG ratio of 5.96, significantly higher than the average PEG ratio of 1.88 for Oil and Gas - Integrated - International stocks [6] Industry Context - The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector and holds a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Earnings and Revenue Estimates - Shell plc (SHEL) is expected to report Q4 earnings of $1.78 per share on revenues of $80.1 billion [1] - The Zacks Consensus Estimate for Q3 earnings remained unchanged, indicating a 19.8% YoY drop, while revenue estimates suggest no significant change from the year-ago period [5] Previous Quarter Performance - In Q3, Shell reported earnings per ADS of $1.92, beating the Zacks Consensus Estimate of $1.72, driven by strong production and higher LNG sales [3] - Q3 revenues of $72.5 billion were 14.3% below the Zacks Consensus Estimate due to weaker commodity prices and a significant drop in Chemicals and Products' performance [3] - Shell has beaten the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average earnings surprise of 15.4% [4] Factors Influencing Q4 Performance - Shell flagged significant hurdles in its integrated gas, renewables, and oil trading divisions, which are expected to impact overall Q4 performance [6] - Earnings from the Integrated Gas division are expected to decline sharply compared to Q3 2024's $2.87 billion, primarily due to the expiry of hedging contracts [7] - Natural gas production is projected to fall to 880,000-920,000 barrels of oil equivalent per day from 941,000 in the previous quarter due to maintenance at Qatar's Pearl GTL plant [7] - LNG volumes are expected to decline to 6.8-7.2 million metric tons from 7.5 million, reflecting reduced feedgas deliveries and fewer cargoes [8] Impairments and Cash Flow Challenges - Shell plans to record a non-cash, post-tax impairment of $1.5 billion to $3 billion, with up to $1.2 billion stemming from its renewables division [9] - The company anticipates a $1.3 billion hit to cash flow from operations due to emission-permit payments in Germany and the United States [9] Trading and Seasonal Weakness - Shell's trading operations in both the Integrated Gas and Oil Products divisions are expected to post significantly weaker results than in Q3 [10] - Seasonal declines in demand and the expiration of hedging contracts have weighed on performance, while chemicals margins have remained depressed [10] Earnings ESP and Zacks Rank - Shell's Earnings ESP is -18.69%, and it currently carries a Zacks Rank 3 (Hold) [12] Alternative Energy Stocks - Energy Transfer (ET) has an Earnings ESP of +9.09% and a Zacks Rank 3, with a Zacks Consensus Estimate indicating 6.1% YoY growth for 2025 earnings per share [13][14] - Helmerich & Payne (HP) has an Earnings ESP of +4.57% and a Zacks Rank 3, with an average earnings surprise of 14.9% over the last four quarters [14][15] - MPLX LP (MPLX) has an Earnings ESP of +0.78% and a Zacks Rank 3, with a Zacks Consensus Estimate indicating 3.5% YoY growth for 2025 earnings per share [15]

Executive Changes - Huibert Vigeveno, Downstream, Renewables and Energy Solutions Director, will step down effective 31 March 2025 after 30 years of service [1] - Wael Sawan, CEO, praised Vigeveno for his leadership in transforming Downstream, Renewables and Energy Solutions, and for successfully integrating BG [2] - Andrew Smith will be appointed Director, Trading and Supply, and Machteld de Haan will be appointed Director, Downstream, Renewables and Energy Solutions, both joining the Executive Committee from 1 April 2025 [2] New Appointments Background - Andrew Smith has been with Shell since 1986, holding various leadership roles including Executive Vice President, Trading and Supply, and leading Shell's LNG and Onshore Gas businesses in Australia [6] - Machteld de Haan joined Shell in 1998, with experience in Lubricants, Chemicals and Products, and was previously CEO of Pennzoil Quaker State Company [6] Company Strategy and Transformation - Shell continues to evolve its structure to deliver more value with less emissions, aligning with its ongoing transformation strategy [2] - The company's financial reporting segments remain unchanged: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate [6] Net Carbon Intensity and Emissions Targets - Shell's Net Carbon Intensity (NCI) includes emissions from production, suppliers, and customers, as well as emissions from energy products purchased for resale [9] - Shell's operating plans reflect Scope 1, Scope 2, and NCI targets for the next ten years but do not yet incorporate the 2050 net-zero emissions target due to its current planning period limitations [10][11]

Shell plc (SHEL) recently announced that CNOOC and Shell Petrochemicals Company Limited (CSPC) have jointly taken a final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, China. The expansion is driven by constructing a third ethylene cracker with an impressive capacity of 1.6 million tons annually. Ethylene isthe key component in making plastics, and downstream derivatives units produce chemicals, including linear alpha olefins.The final investment decision will also include bu ...

Group 1 - Shell plc is a multinational oil and gas company based in the UK with a market capitalization of approximately $200 billion, classifying it as a "supermajor" in the oil industry [1] - The company is recognized as one of the largest oil companies globally, indicating its significant presence and influence in the energy sector [1] Group 2 - The article does not provide any specific financial performance metrics or recent developments related to Shell plc or the oil and gas industry [2][3]

Shell plc (SHEL) , the British oil and gas major, has stated that it will record a financial write-down of nearly $400 million over an offshore oil discovery in Namibia. The company has found the oil discovery to be commercially infeasible for development.Per Reuters, SHEL cannot confirm the development of this resource under the current circumstances. The oil and gas find, located in the offshore block PEL 39, was discovered by Shell and its partners, QatarEnergy and the national oil company of Namibia, in ...

Shell plc (SHEL) , the British energy major, has announced that it plans to increase the sales of liquefied natural gas (LNG). This decision has faced criticism from a group of major shareholders, who filed a resolution questioning whether the expansion of LNG sales aligns with the company’s commitment to reduce carbon emissions related to its operations.Shell's LNG Expansion Plans Under ScrutinyBeing the largest trader of LNG globally, Shell is banking on the anticipated rise in demand for the commodity in ...

KEY TAKEAWAYSShell shares are falling in premarket trading Wednesday after the oil giant said it expects to post a large quarter-over-quarter production slump in its integrated gas division.The London-based energy firm attributed the forecast to the expiration of hedging contracts.Shell also said it expects write-offs of around $300 million in the division. Shell (SHEL) shares are falling 2% in premarket trading Wednesday after the oil giant said it expects to post a large quarter-over-quarter production sl ...

The following is an update to the fourth quarter 2024 outlook and gives an overview of our current expectations for the fourth quarter. Outlooks presented may vary from the actual fourth quarter 2024 results and are subject to finalisation of those results, which are scheduled to be published on January 30, 2025. Unless otherwise indicated, all outlook statements exclude identified items. See appendix for the definition of the non-GAAP measure used and the most comparable GAAP measure.      Integrated Gas ...