Shell plc (SHEL) is set to release third-quarter results on Oct. 31. The current Zacks Consensus Estimate for the to-be-reported quarter is earnings of $1.72 per share on revenues of $84.6 billion.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Let’s delve into the factors that might have influenced the integrated energy behemoth’s results in the September quarter. But it’s worth taking a look at SHEL’s previous-quarter performance first.Highlights of Q2 Earnings & Surprise HistoryIn ...

Shell (NYSE: SHEL ) reports earnings 10/31/2024 in the pre-market. I think this is going to be a beat on earnings. Most likely a beat on revenue as well. I have more confidence that earnings will be beatBram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucrative investments based on special situations.Analyst’s Disclosure: I ...

Core Viewpoint - Shell plc's divestment deal to sell its onshore Nigerian subsidiary for $1.3 billion has encountered regulatory challenges, as the future buyer lacks the necessary qualifications to manage the assets [1][2]. Group 1: Overview of SHEL's Divestment Deal - In January 2024, Shell announced a divestment strategy to sell 15 oil mining leases and three shallow-water operations held via its Nigerian subsidiary, SPDC, to refocus on more profitable ventures like deep-water offshore fields [2]. - The completion of the deal was contingent upon regulatory approvals and other conditions, which were recently rejected due to the Renaissance Group's inability to manage the assets [2]. - The sale agreement stipulated a change of ownership while retaining operating capabilities with SPDC, which would continue to support the management of SPDC JV facilities for feed gas supply [2]. Group 2: Future Projections for Shell - Following the rejection of the divestment plan, Shell faces uncertainty regarding its onshore assets in Nigeria but is actively engaging with regulatory authorities to provide necessary information for the sale process [3]. Group 3: SHEL's Zacks Rank and Key Picks - Shell is classified as a primary oil super major with a Zacks Rank of 3 (Hold) and remains a significant investor in Nigeria despite the divestment of its onshore business [4]. - Investors may consider better-ranked stocks in the energy sector, such as PEDEVCO Corp. (Zacks Rank 1), Nine Energy Service, Inc. (Zacks Rank 2), and MPLX LP (Zacks Rank 2) [4]. - PEDEVCO Corp. has seen a 33.33% improvement in the Zacks Consensus Estimate for its 2024 earnings over the past 60 days [4]. - Nine Energy Service, Inc. has an expected EPS growth rate of 23.08% for the current quarter, outperforming the industry's growth rate of 6.14% [5]. - MPLX LP's expected EPS growth rate for three to five years is 8.50%, also exceeding the industry's growth rate of 5.80% [5].

Group 1 - Petrobras S.A. has signed three concession agreements with Shell and CNOOC for blocks in the Pelotas Basin offshore southern Brazil, awarded during the fourth cycle of the permanent concession offer by ANP in December 2023 [1] - In total, Petrobras was awarded 29 blocks in the Pelotas Basin, with 26 contracts in partnership with Shell, where Petrobras holds a 70% stake as the operator [2] - For the remaining contracts, Petrobras formed a consortium with Shell and CNOOC, holding a 50% stake as the operator, while Shell and CNOOC hold 30% and 20% stakes, respectively [3] Group 2 - Petrobras has a $102 billion spending plan as part of its 2024-2028 strategy, focusing on significant investments in oil and gas, including the newly acquired contracts [4] - The company aims to diversify its portfolio and strengthen its position in deep-water oil fields, with a focus on energy transition and plans to establish 14 new floating production storage and offloading vessels over the next five years [5] Group 3 - Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America, currently holding a Zacks Rank 4 (Sell) [6] - The company is involved in multiple projects in countries like Colombia and South Africa as part of its diversification strategy [6]

Core Viewpoint - Oil stocks are experiencing a decline due to a combination of increased supply and slowing demand growth, as indicated by the International Energy Agency (IEA) report [3][5]. Group 1: Oil Prices and Market Dynamics - West Texas Intermediate (WTI) crude oil prices have fallen to approximately $70.60 per barrel, a 9% decrease from the previous week, with a significant drop of 4.5% occurring in one day [2]. - The IEA has revised its oil demand growth forecast for 2024 down to an increase of only 862,000 barrels per day (bpd), a decline of 4.5% from earlier estimates [3]. - Non-OPEC oil production is expected to rise by 1.5 million bpd this year and another 1.5 million bpd next year, contributing to an oversupply situation in the market [5]. Group 2: Demand Trends - China's oil demand is particularly weak, with consumption decreasing by 500,000 bpd year over year in August, marking the fourth consecutive month of declines [4]. - The overall demand growth is projected to be less than 1 million barrels per year for two consecutive years, while supply continues to increase, potentially leading to a price war among suppliers [5]. Group 3: Investment Opportunities in Oil Stocks - ExxonMobil, ConocoPhillips, and Shell are identified as potential investment opportunities, with price-to-earnings ratios of 14.8, 12.2, and 12.1 respectively [6]. - Analysts forecast single-digit growth rates for these stocks over the next five years: 6% for Exxon, 7% for Conoco, and 5% for Shell [7]. - Shell offers the highest dividend yield at 4%, followed by Exxon at 3.1% and Conoco at 2.8%, making Shell the most attractive option in terms of valuation and dividends [7][8].

Group 1: Shell's Refining Segment Performance - Shell's refining margins dropped 30% in Q3 compared to the previous quarter, primarily due to a decline in global demand for refined products [1] - The indicative refining margins for Shell decreased from $7.7 per barrel in the previous quarter to $5.5 per barrel [3] - The trading results for Shell's chemicals and oil products division are expected to be lower than the prior quarter, indicating a negative impact on financial performance [3] Group 2: Industry-Wide Impact - A global slowdown in economic activities is anticipated to negatively affect the third-quarter earnings of major energy firms, including Shell [2] - The third quarter saw a 17% decline in oil prices compared to the second quarter, which is expected to adversely impact the results of many major energy companies [5] - Exxon Mobil Corporation expects a reduction in upstream profit by $600 million to $1 billion due to the slump in oil prices and declining refining margins [5] Group 3: Natural Gas Market Dynamics - Natural gas prices have risen recently, which may positively affect the third-quarter results of upstream companies [6] - Companies like EQT Corporation are increasing production in response to rising natural gas prices after previously scaling back production when prices were low [6] Group 4: Shell's LNG Segment - Shell raised its production guidance for liquefied natural gas (LNG) from 6.8-7.4 million tons to 7.3-7.4 million tons for the quarter [4] - However, the trading results for the LNG segment are expected to remain flat sequentially [4]

Shell plc (SHEL) , a London-listed energy major, has signed a long-term naphtha supply deal with QatarEnergy. Per the terms of the agreement, QatarEnergy will supply 18 million metric tons of naphtha to Shell over a duration of 20 years. The deal is expected to begin in April next year. The head of QatarEnergy has highlighted that the naphtha supply agreement is its longest and largest supply deal to date. This is the latest one in a string of deals that QatarEnergy has signed with Asian and European partne ...

Following our June 2024 analysis, the company " Is On The Right Track ," today we are back to comment on Shell plc (NYSE: SHEL ) ( OTCPK:RYDAF ). In our Shell coverage, we highlighted how OPEC+ countries announced Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treat ...

Shell (SHEL, Financial) saw its shares rise by 1.56%, reaching $69.58. The company announced expectations of a significant decline in refining margins for the third quarter due to reduced global demand, which also impacted oil product trading earnings. Despite these challenges, Shell has raised its liquefied natural gas (LNG) production forecast for the third quarter from the previous range of 6.8-7.4 million tonnes to 7.3-7.7 million tonnes, with trading performance expected to remain stable compared to th ...

Core Insights - The company provides an updated outlook for Q3 2024, with expectations for various segments including Integrated Gas, Upstream, Marketing, Chemicals, and Renewables [1][2][3][4][5]. Integrated Gas - Adjusted EBITDA is projected with production between 920 - 960 kboe/d and LNG liquefaction volumes of 7.3 - 7.7 million tonnes [1]. - Underlying operating expenses (opex) are expected to be in the range of 1.1 - 1.3 billion [1]. Upstream - Adjusted EBITDA is anticipated with production between 1,740 - 1,840 kboe/d [2]. - Underlying opex is forecasted to be between 1.9 - 2.5 billion [2]. - Pre-tax depreciation is expected to be in the range of 2.3 - 2.9 billion, with a taxation charge of 2.0 - 2.8 billion [2]. Marketing - Adjusted EBITDA is projected with sales volumes between 2,750 - 3,150 kb/d [3]. - Underlying opex is expected to be in the range of 2.5 - 2.9 billion [3]. - Pre-tax depreciation is forecasted to be between 0.4 - 0.8 billion, with a taxation charge of 0.2 - 0.5 billion [3]. Chemicals and Products - The indicative refining margin is expected to be $5.5 per barrel [4]. - The chemicals sub-segment is projected to reflect a marginal loss in Q3 2024, with an indicative chemicals margin of $164 per tonne [5]. - Refinery utilization is expected to be between 79% - 83%, while chemicals utilization is forecasted at 73% - 77% [5]. Renewables and Energy Solutions - Adjusted earnings are expected to be in the range of (0.4) - 0.2 billion [5]. Corporate - Adjusted earnings are projected to be between (0.7) - (0.5) billion [5]. Cash Flow from Operations - Cash flow from operations (CFFO) is expected with tax paid in the range of 2.5 - 3.3 billion, derivative movements between (2) - 2 billion, and working capital ranging from 0 - 4 billion [6]. Guidance and Consensus - The 'Quarterly Databook' contains guidance on indicative refining and chemicals margins, with consensus for quarterly adjusted earnings and EBITDA expected to be published on October 23, 2024 [7].