Zoe announced that SPDC is sold. We have the best executive committee don’t we folks. They know nothing but cutting and by god are they good at it. Cut cut cut.
Hopefully we can finish divesting all of our assets and firing all employees except for the EC by 2030 so that we can meet our climate goals early and offer a huge return to shareholders via a giant mountain of asset sale cash sitting in a bank making 10% a year which beats shells 15 year avg ROR. Win win, master plan. Who needs assets?
BP is not a great performing company but one of the benefits of a BP merger is they would get some additional assets in the US.
Selling off assets, piece by piece, to raise cash, with the result that someone else who better use them is nothing short of a SLOW MOTION BANKRUPTCY.
But don't let that unsettle you. Stick around. Watch the show.
Divesting things and investing in something better is a great idea. We should cheer them on.
Literally, they could invest in a total stock market index or an index of our competitors and it would be a better return on investment (ROI) than Shell's average. Do the math or look back for the last 3 years or even the last 100 years. A total stock index way -way outpaces Shell's profits. $16bln profit paying out ~$8.1bln in dividends on a $208 bln market cap... That's about what Bill Bengen would do with the "4% rule" demonstrating that no historical circumstances would lead to going broke doing this.
Divestment isn't bad if you use the proceeds to purchase something better.
Shell really should get into the Permian Basin (again); but unfortunately, the price of entry is higher than our price to exit. That leaves throwing money at the Vaca Muerta, Oman, or GOM (Gulf of America, if you're reacting). But alternatively, is there anything that would be a viable investment?
you’re obviously from india so i have some news for you
here in the places where the energy is actually harvested, we all know that you must invest lots of capital in many bets in order to be an energy company. this is because very few of these prospects become assets. if you don’t do this, your asset funnel will empty and you will no longer be a company in a decade. you can feel free to check into these claims with your research tools of choice.
energy is not a low risk capital light growth industry and this will not change just because crazy dutch people have green fever and feel cool when they hang out with blackrock at davos.
i genuinely hope you get your wish and they divest everything but india and some dutch people to lead them until they go broke. it won’t take a long time if things go that way.
Most of the assets return close to the low end of the P10-P90 range. Meaning that the estimate of the value of most if not all of the assets is pretty far off the mark and they don't know the value of what they have; so, I don't trust them to identify the low performing assets to sell.
Remember Guyana (give away) and Appalachia, Aera, and Permian sales... those were pennies on the dollar sales.
Ask not what Shell can do for you but what you can do for Shell
I think it's time for Shell employees in the high income countries to look themselves in the mirror and ask themselves if they have been good stewards of the company. The executive team is having to divest assets that have low or zero returns. It's time for the rank and file to take ownership of Shell's challenges that they bought onto the company. Shell employees should take note of what the new Starbucks CEO told his corporate employees - "you own whether or not this place grows". Shell employees performance will decide whether Shell deserves to invest $25 billion per year in CapEx.