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I suppose that with the District Court in The Hague, in May, saying that Shell must reduce its global net carbon emissions by 45% by 2030 compared to 2019 levels
....one way of doing that is to pass some of the "offending" assets on to someone else !!
Take the cash and run..and claim to be now one of the "good" boys !!!
Good valuation received by the looks of things .... but they don't make any mention of using any for "acquisitions"
" The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations2
Let's call it 100p.
The RNS says"The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder DISTRIBUTIONS (my caps) after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be IN ADDITION TO (my caps again) our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021. So that IMV clearly means a special divi (of about 60-70p by my calc)early next year, not buybacks and that makes sense , the news will drive the SP up in the short term and perhaps other divestments are in train as part of the " Greening" process, so buybacks have less benefit.
Decent deal, shale is high capex and low returns.
Would have preferred the cash was used to pay down debt rather than being returned to shareholders though.
Let’s see what the market thinks.
That's just what I read on Bloomberg so don't take it as gospel.
Looks like it's going to buy backs, not a special div. I would personally prefer a dividend, it's money in the (my) bank. Buy backs always just seem to get lost in the general ups and downs of the markets and the shareholder never really sees any tangible reward in my experience anyway.
Thanks that's Christmas sorted.
Based on the Total number of shares as of August 31, 2021 of 7,784,375,231, that works out roughly about 90p per share I think, that’s a nice cash to have if we all get it in Special Divi.
Also the share price could easily go to 1520.60 from today’s closing price from arbitrage perspective to me.
Lovely Jubbly
How much extra divi and when will it get payed ,
Oh - and there's the RNS!!!
The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30% of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021......
Drinks all round then!
9.5 billion cash in hand no bad thing. (if
we are lucky, they can hide it from HMRC.)
I think this was flagged up in June? https://www.offshore-technology.com/news/shell-sale-permian-basin-assets/
The Permian doesn't fit a genuine 'green' agenda - assuming that is actually what RDS is striving for - so it's probably good news and raises cash to reduce debt, pay a special divi or invest.... in a genuine green agenda without this blue hydrogen malarky. By which, I essentially mean blue is not green - or even remotely close, apparently.
Sounds like Conocco have bought Shell assets for 9.5$ billion.
Not sure if thats good or bad business??