Shell: Dividend share II

Shell (formerly Royal Dutch Shell) is a company active in the fields of oil/gas (utilities), raw materials extraction (oil/gas), raw materials and oil and gas. Shell is one of the largest energy companies in the world. Shell is involved in oil and gas exploration and production projects in around 70 countries and is one of the world's largest distributors of fuels and lubricants. Its production operations are mostly carried out through joint ventures with international and national oil and gas companies and are equipped with their own transportation infrastructure. The company's end products include fuels and lubricants, bitumen and liquefied petroleum gas for domestic use by end customers as well as for industry and transportation. Shell also produces chemicals and petrochemicals for industrial customers who process them into plastics, surfaces and cleaning products.

In 2022, the company produced 1.5 million barrels of liquefied natural gas and 7.9 billion cubic feet of natural gas per day. At the end of 2022, reserves amounted to 9.4 billion barrels of oil equivalent, of which 50% was liquefied natural gas. The company's production and reserves are located in Europe, Asia, Oceania, Africa and North and South America. The company operates refineries with a capacity of 1.7 million barrels/day in North and South America, Asia, Africa and Europe and sells 12 million tons of chemicals per year. The company's largest chemical plants, which are often integrated with local refineries, are located in Central Europe, China, Singapore and North America.

Shell's competitors include Anadarko Petroleum, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, FUCHS, Petro Welt, Repsol and TotalEnergies. The share has a very high free float of 97.3 %.

www.shell.com

In this analysis, we turn our attention to Royal Dutch Shell, which has already been mentioned several times in our webinars. The business model of this energy giant is well known to us, so we will refrain from describing it in detail. Of particular note is that Royal Dutch Shell recently cut its dividend - a historic move last seen after the Second World War. This measure was a reaction to the massive price shock that the corona crash triggered on the financial markets in March 2020. Despite these challenges, we expect, based on the current share price, that the dividend can remain stable at at least 3-4% annually in the coming years.

According to the Elliott Wave Theory, the stock has already seen the worst, especially after the low in March. As long as the support in the EUR 9-10 range holds, the share could continue to show potential for a rise. Oil prices, which are stable according to the EW theory, could also give the share an additional boost.