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Barrieprov,
I just hope that Biden hasn't thrown out too much helicopter money.....it is all brewing up to a lot of money out there and prices are going to have to rise ....the FED and Biden HAVE to get it all right....not easy of course
There is A LOT of leveraged money in the US markets ..and if.. anything goes wrong ( I am not saying it will ) then that call on the leverage market is what will be the other side of the coin from the current bull recovery plan
Pokerchips
Can’t wait for next two quarterly updates
Dow going to be up 200 at open as US retail sales jumped 10% in March - just need to see optimism feed through into RDSB
Barrieprov,
I would guess they have used some of the asset sales to help pay the dividend lately ..not surprising given the circumstances ... ....so in many ways..it isn't "really " a performance dividend ..partly ..you could probably describe it as "returning asset cash to shareholders" ...but anyway.......they got through a really tough year (again!)
Hi Neversellshell22
In the final quarter of 2020 net debt rose so in reality the dividend wasn’t covered by free cashflow
https://www.shell.com/investors/results-and-reporting/quarterly-results/2020/q4-2020/_jcr_content/par/toptasks_1119141760_.stream/1612367462808/f6e86f369c7083244d6999144f17fae917d82093/q4-2020-qra-document.pdf
You maybe right about Q1 2021 however and like you I’ll be sifting through the announcement on 29 April
The SP is struggling a bit given the OP but I see the opportunity to buy on any dip albeit I’m getting quite overweight on this stock I’m still like you positive about the near and medium term
Thanks Barriepov,
Cant see why they wont have covered their dividend at oil over 60$ all quarter. I know our gas isnt cutting the mustard but we have great oil assets....And the trading always helps....
RDSB net assets $158 billion at 31 Dec 20 so $65 billion is 41% of that figure but at end of 2020 it stood at $75 billion so there’s $10 billion to go and that only happens from net cash generation from profits after tax, depreciation and working capital adjustments, dividends and capital expenditure
Share buybacks improve return on capital but the logic is usually no better alternative use of capital which given the transitional nature of RDSB business is a complex and moving picture. As for cash generation I think we need at least 2 quarters to see it stabilise as currently I doubt they even covered their dividend?
Can you explain thats a bit more with some numbers .....I dont quite get it
Looking at net assets 31 Dec 2020. Both targets are c41% of net assets (realisable value per the stats..)
Major difference is BP reached their target quicker?
The term "surplus cash flow"....is actually pretty vague....
60% of a little amount is worse than 30% of a big amount ?
"surplus" ..difficult to pin down what that actually turns out to be
"Once we have reduced net debt to $65 billion, we will look to further
increase total shareholder distributions. Through progressive dividend and
share buybacks, we are targeting total distributions to shareholders of
20-30% of our cash flow from operations. We will also seek to increase
capital spending in a disciplined way."
BP have said
"On reaching this net debt target, bp is committed to returning at least 60% of surplus cash flow to shareholders by way of share buybacks, subject to maintaining a strong investment grade credit rating."
Does that seem a major difference ?????