Royal Dutch Shell B Share Price (RDSB)

Should of added more at 21.50 but was hoping for 21.00. Always another day

Seems to be a good performance at the firs tQ. Seems that shell are benefiting from there exposure in the gas markets over competitors.

Positive Points: In outlook commentary, Peter Voser, Shell's CEO, said: "With the first year of our 2012-15 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year." Shell benefited from an improved performance in its refining and marketing division. Adjusted profit in the downstream business was $1.2 billion, compared with a loss of $278 million a year ago. Production increased by 3.3% to 3.41 million barrels of oil or natural gas equivalents per day, as increases at young projects in Qatar and Australia offset declines at existing fields. Shell said it has 30 new projects under construction that will increase its oil and gas production to 4 million barrels of oil equivalent a day by 2017 or 2018. The dividend yield remains attractive in a low interest rate environment.

Negative Points: The group continues to see significant oil price volatility as a result of economic and political developments. Group earnings, on a current cost of supplies (CCS) basis, were $7.3 billion compared with $6.5 billion in the same quarter a year ago. Governments across the world continue to try to advance their share of the profits, whilst elements of the group's production (oil sands) generate higher costs than more traditional sources. Earlier this week, a Dutch court ruled that Royal Dutch Shell’s Nigerian subsidiary was responsible for a case of oil pollution in the Niger Delta. The company's operating activities can be severely disrupted by the effects of natural disasters or industrial accidents. Changing political forces can affect Shell's pace of development activity in any country in which it operates. The company has interests in a number of Middle Eastern countries.

Financial Highlights: Shell reported a profit of $5.6 billion in the fourth quarter, a 15% rise on the $4.8 billion it made a year ago, buoyed by a much stronger performance in its refining division. Cash flow from operating activities was $9.9 billion in the fourth quarter 2012 and $46.1 billion for the full year. A quarterly dividend of $0.43 per share has been declared, a 4.7% increase year-on-year.

Fourth Quarter & Full Year results: Today's numbers have failed to inspire against the backdrop of a generally lacklustre market. There are certainly positives within the statement. Refining margins improved in the last quarter, the company's increased investment is part of a long-term strategy, and the accompanying management comments were upbeat on future prospects. This was reflected by further hiking the dividend, where the yield is already a healthy 4.5%, a clear attraction to income seeking investors. However, the overall profit number was shy of expectations, costs are on an upward trend within the industry and the weakness of the gas price has impacted on Shell, which for the first time sold more gas than oil last year. This uncertainty has weighed somewhat on the shares, with the price having risen 3% over the last year, as compared to an 11% gain for the wider FTSE100. Market consensus has eased of late to a hold, albeit a strong one, which has fractionally edged BP into becoming the more favoured play of the two arch rivals.