Undervalued and over here

5 May 2022 By George Hay Follow @gfhay

Exxon Mobil and Chevron trade at big premiums to Shell, BP and Total, despite all benefitting from soaring fossil fuel prices. The Americans’ slower pivot to renewable energy is one reason why. Europeans’ lucrative trading arms give cause for investors to be more generous.

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Context News

Shell on May 5 reported first-quarter earnings of $9.1 billion, compared to $3.2 billion in the first quarter of 2021.

The UK oil group beat its previous highest quarterly profits recorded in 2008 even after writing down $3.9 billion post-tax as a result of its decision to exit operations in Russia.

Shell said its dividend payments and share repurchases reached $5.4 billion in the quarter, part of its plan to buy back $8.5 billion of shares in the first half of the year. Shareholder distributions for the second half of 2022 are expected to be in excess of 30% of cash flow from operating activities, compared to a 20%-30% range before.

Net debt fell to $48.5 billion from $52.6 billion at the end of 2021.

As of 0725 GMT Shell’s shares were trading at 22.95 pounds, up 3.2% in early trading.

Context News

Shell on May 5 reported first-quarter earnings of $9.1 billion, compared to $3.2 billion in the first quarter of 2021.

The UK oil group beat its previous highest quarterly profits recorded in 2008 even after writing down $3.9 billion post-tax as a result of its decision to exit operations in Russia.

Net debt fell to $48.5 billion from $52.6 billion at the end of 2021.

As of 0725 GMT Shell’s shares were trading at 22.95 pounds, up 3.2% in early trading.

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