Group 1 - European stocks are expected to open flat to lower, with the U.K.'s FTSE and Germany's DAX projected to decline by 0.25% [1] - A busy day of earnings reports in Europe includes major companies such as Shell, BBVA, BNP Paribas, and BMW among others [2] - The European Central Bank and Bank of England are set to publish their monetary policy decisions, with no changes expected to current interest rates [2] Group 2 - Global markets have faced turbulence, with Wall Street experiencing a second consecutive day of losses, particularly in software stocks [3] - S&P 500 futures rose following corporate earnings reports, including results from Alphabet, with Amazon's quarterly results expected soon [3] - In Asia-Pacific markets, South Korean stocks led declines, reflecting the tech sell-off trends from Wall Street [3] Group 3 - Data releases in Europe include German factory orders, French industrial production, and EU retail sales [4]

Core Insights - The "2026 China Oil and Gas Engineering Technology Exchange Conference and New Technology and Achievement Exhibition" will be held in Chengdu from April 15 to 17, aiming to gather global oil and gas elites for industry innovation and breakthroughs [1][2] Group 1: Conference Overview - The conference will feature a high-level international exchange platform with participation from major domestic oil and gas groups such as China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), and China National Offshore Oil Corporation (CNOOC), alongside international giants like ExxonMobil, Shell, BP, and Total [1][2] - The core theme of the conference is "Creating Oil and Gas Engineering Technology Tools to Promote High-Quality Development of Oil and Gas Exploration and Development," focusing on innovative breakthroughs in core engineering technologies [1][2] Group 2: Conference Structure - The conference will consist of an opening ceremony, invited reports, technical forums, and achievement displays, with domestic and international experts sharing insights on the latest technological advancements and industry trends [2] - Technical forums will cover five specialized topics, including intelligent drilling and completion technology, geophysical exploration, reservoir fracturing, deepwater unconventional oil and gas engineering, and well control safety [2] Group 3: Objectives and Impact - The conference aims to bridge the gap between industry, academia, and research, enhancing the international competitiveness of China's oil and gas engineering technology and promoting the independent upgrading of domestic equipment and processes [3] - The event is expected to foster industry consensus and promote technological collaboration, providing strong support for the high-quality development of the oil and gas engineering sector [2][3]

Core Viewpoint - Shell's subsidiary, Shell Brasil Petróleo, has agreed to divest a 20% interest in the Orca Project to Kuwait Foreign Petroleum Exploration Company (KUFPEC), while retaining a 50% ownership and continuing as the project operator [1][2]. Group 1: Transaction Details - The financial terms of the divestment were not disclosed [1]. - The Orca Project, located in Brazil's Santos Basin, is a deep-water development that includes both the BM-S-54 concession contract and the South Orca production sharing contract [1]. - The deal is pending regulatory approval and is expected to close by late 2026 [3]. Group 2: Strategic Implications - This transaction aligns with Shell's capital allocation strategy and reinforces its position as the largest foreign oil and gas producer in Brazil [2]. - The partnership with KUFPEC enhances strategic alliances in various upstream sectors, building on previous collaborations in Egypt and Kuwait [4]. Group 3: Project Operations - Shell currently holds a 70% stake in the Orca Project, with Ecopetrol owning the remaining 30% [4]. - A contract was awarded to Vallourec for offshore operations at the Orca Project, involving the provision of oil country tubular goods, with drilling scheduled to begin in April 2027 [5].

Core Viewpoint - Shell has demonstrated strong operational performance under CEO Wael Sawan, consistently beating market expectations despite a significant drop in oil prices [1][2]. Financial Performance - Shell reported better-than-expected earnings in five of the last eight quarters, with a notable third-quarter earnings of $5.4 billion, surpassing the forecast of $5.1 billion [2]. - The company anticipates a year-on-year decline in headline earnings for 2025 by around 20%, attributed to a nearly 19% drop in Brent crude prices [4]. - For the fourth quarter, earnings are expected to decrease by approximately 10% year-on-year, with lower performance in downstream and chemicals divisions [5]. Production and Capital Returns - Shell's upstream business remains robust, with production expected between 1.84-1.94 million barrels of oil equivalent per day, an increase from 1.832 million in the previous quarter [6]. - The company has announced plans for $3.5 billion in share buybacks for the last two quarters, marking the 16th consecutive quarter of buybacks exceeding $3 billion [7][8]. Cost Management and Capital Deployment - Shell has raised its cost reduction target to a cumulative $5-7 billion by the end of 2028 and reduced its capital expenditure target to $20-22 billion between 2025 and 2028 [9]. - The company is considering selling its Vaca Muerta shale assets in Argentina, which could generate several billion dollars, aligning with Sawan's strategy to reshape Shell's portfolio [11]. Regional Focus and Investments - Shell is increasing its investments in Nigeria, with $5 billion allocated to the Bonga North deepwater project and $2 billion to the HI gas field, alongside plans for the Bonga Southwest project potentially involving up to $20 billion [13][14]. Strategic Considerations - Shell has ruled out a takeover bid for BP, which has seen a 25% increase in share price since the announcement [15]. - There are speculations about Shell potentially moving its main stock listing to New York to improve its market valuation compared to U.S. rivals [16].

Core Viewpoint - European energy companies are facing significant challenges this earnings season, with shareholder payouts at risk due to cost-cutting measures amid declining crude prices [1][2]. Group 1: Earnings Outlook - Shell and TotalEnergies are anticipated to report their lowest fourth-quarter profits in nearly five years, reflecting a tough market environment for European energy firms [2]. - Analysts expect lower quarterly profits and free cash flow across the industry, indicating a challenging financial landscape [2]. Group 2: Strategic Responses - Companies are likely to prioritize maintaining dividends over cutting them, although they may reduce share buybacks and scale back capital programs [3].

Core Insights - The decline in oil prices over the past year has negatively impacted the earnings of major oil companies, with prices around $60 per barrel compared to $100 in 2022 and $80 in 2023 and 2024, indicating that shareholder returns may not be sustainable going forward [1] Group 1: Impact on European Oil Majors - European oil firms may announce cuts to their share buybacks in response to lower oil prices [2] - Analysts predict that European majors could reduce buybacks by 10% to 25% due to sustained low oil prices [6] - Companies like BP, Shell, TotalEnergies, Equinor, and Eni are expected to report lower earnings for the fourth quarter compared to the third quarter, influenced by low liquids prices and reduced chemicals margins [7] Group 2: Comparison with U.S. Peers - U.S. supermajors, such as ExxonMobil and Chevron, have maintained their share repurchase programs and reiterated buyback plans through 2026 under reasonable market conditions [3] - Unlike European firms, U.S. companies have not shifted their focus away from oil production, maintaining high-margin assets [4] Group 3: Strategic Adjustments - European majors are currently adjusting their strategies to focus back on oil and gas while reducing investments in renewables [4] - TotalEnergies has indicated plans to lower buybacks for the fourth quarter of 2025 and for 2026, aligning with hydrocarbon prices and refining margins [8]

Core Insights - Subsea7 S.A. has been awarded a contract by Shell plc for the Kaikias Waterflood project in the Gulf of America, focusing on subsea equipment transportation and installation [1][8] - The contract is considered 'sizeable', valued between $50 million and $150 million, with project management and engineering tasks commencing immediately [2][8] - Offshore activities for the project are scheduled to begin in 2027, with subsea infrastructure to be installed at depths of up to 1,650 meters [2][8] Company Relationship - The contract award strengthens Subsea7's long-standing relationship with Shell, allowing the company to leverage its deepwater experience for the Kaikias project [3] Project Details - Shell made a final investment decision on the Kaikias waterflood project in December 2025, aimed at increasing recoverable resources by injecting water into the reservoir to aid oil extraction [4]

Shell has agreed to sell a 20% stake in its Orca project offshore Brazil to Kuwait Foreign Petroleum Exploration Company (KUFPEC), the oil major said on Tuesday. ...

Core Viewpoint - Shell (SHEL) is expected to report quarterly earnings of $1.21 per share, a 0.8% increase year-over-year, with revenues projected at $68.09 billion, reflecting a 1.9% year-over-year increase [1]. Earnings Projections - The consensus EPS estimate has been revised 0.3% lower over the last 30 days, indicating a reevaluation by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Estimates - Analysts predict the 'INTEGRATED GAS - Realised gas price' to be $6.90 per thousand scf, down from $8.10 in the same quarter last year [5]. - 'INTEGRATED GAS - LNG liquefaction volumes' are forecasted to reach 8 million tons, up from 7 million tons year-over-year [5]. - The estimated 'INTEGRATED GAS - Realised liquids price' is $55.89 per barrel, compared to $63.45 in the same quarter last year [6]. - The consensus for 'CHEMICALS & PRODUCTS - Global indicative refining margin' is $13.56 per barrel, significantly up from $5.54 in the same quarter last year [6]. - 'CHEMICALS & PRODUCTS - Refinery utilisation' is expected to be 93.0%, a notable increase from 76.0% year-over-year [7]. - 'CHEMICALS & PRODUCTS - Chemicals sales volumes' are projected at 2469 thousand tons, down from 2926 thousand tons in the same quarter last year [7]. - The estimated 'UPSTREAM - Realised liquids price' is $60.34 per barrel, compared to $70.69 in the same quarter last year [9]. Stock Performance - Over the past month, Shell shares have returned +0.9%, while the Zacks S&P 500 composite has changed by +1.8% [11]. - Shell currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [11].

科威特石油公司首席执行官谢赫纳瓦夫·萨巴赫2月3日在活动中表示，壳牌公司将与科威特石油公司合 作开发巴西的一处油田。萨巴赫同时透露科威特将延长与英国BP公司的油田合作合同。 来源：滚动播报 ...