ROYAL DUTCH SHELL

Analysis of Royal Dutch Shell share price

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You can now invest in the Royal Dutch Shell share price and thus invest in the energy sector thanks to our detailed sheet which contains all the important data to know about this security. You will notably find a historical technical analysis of its share price together with the current share price in real time.

Latest news

Shell: Disappointing quarterly activity report

19/04/2021 - 07h29

On Wednesday, Shell shares were in trouble among the stocks in its sector. Shell is also thinking of building a network in Asia and in collaboration with Porsche.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we would recommend you carefully follow all buyout and acquisition operations related to company shares and competitors’ company parts that would enable Shell to gain a larger part of the market.

Analysis N°2

Movements in the global demand for oil should of course also be carefully monitored.

Analysis N°3

We would also urge that you follow government laws and regulations and any changes in international laws that could influence the activities and profitability of this company.

Analysis N°4

Although it is one of the leaders in its activity sector Shell still faces heavy competition.You should therefore take this into account and take the time to get to know the major competitors to this group by following their financial news, publications and shares of the market.

Analysis N°5

It is clear that with laws relating to the environment that are becoming increasingly stricter this could present an obstacle to Shell’s activities.

Analysis N°6

Finally, the worldwide global instability remains a threat to be taken into consideration for the Shell Company.

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General presentation of Royal Dutch Shell

The Royal Dutch Shell Group is a Dutch company that exercises its activities in the production and distribution of oil and natural gas.  To better understand the activities of this group it is possible to categorise them into different sectors according to the turnover generated by each type of activity as follows:

Firstly, we know that the majority of the revenue of the Royal Dutch Shell Company is achieved through its refinery and distribution activities which account for 86.2% of this group’s turnover.  This is followed by this group’s revenue from its 21 refineries and network of over 44,000 service stations around the world. It should be mentioned here that the group also manufactures petrochemical products such as olefins, aromatic products, solvents, ethylene, propylene, phenols and various additives as well as its activities related to the production of solar energy.

The rest of the group’s income, that is to say 13.8% of its turnover, is from the exploration and production of crude oil and natural gas. We should also note here that this company is currently developing its activities in the production of energy and fuel from wind power and oil sands.

It can also be useful to know how the group’s activities are distributed from a geographical point of view. Royal Dutch Shell achieves 30.6% of its turnover in Europe, 39.6% in Asia, Oceania and Africa, 23.1% in the United States and the remaining 6.7% from various other countries around the world.

The share price of the Royal Dutch Shell Company is currently quoted in compartment A of the Euronext Amsterdam stock market and is integrated in the calculation of the AEX stock market index.

Analysis of Royal Dutch Shell share price
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The major competitors of Royal Dutch Shell

ExxonMobil

The primary direct competitor to Royal Dutch Shell is currently the American oil and gas company ExxonMobil Corporation. This is in fact one of the extra large petroleum companies with fields considered to be among the largest owned by a private company at the present time.

BP Group

Then we find the BP Company which is a British company created in 1909 that exercises the activities of research, extraction, refinery and sale of oil and refined products.  This has become the largest company in the United Kingdom since its merger with Amoco, Atlantic Richfield and Burmah Castrol. It is also the third largest petroleum company worldwide.  The BP Group currently exercises its activities in approximately one hundred countries around the world and employs more than 80,000 people.

Total

We would also monitor the French Total S.A. Group which is also a top oil and gas company and the largest French company in this sector in terms of turnover. It also happens to have the fourth largest stock market capital in the Euro zone. This group provides a full range of activities in this sector from the extraction of crude oil and natural gas through to the creation of energy and including refinery activities and retail sales. The Total Group also exercises its activities in the low carbon fuel sector and the production of electricity. It operates in over 130 countries at present and employs more than 100,000 people.  It also operates more than 16,000 service stations worldwide, 3,500 of these in France alone through the brands Total, Total Access and ELAN.

Chevron

Then we find the Chevron Corporation which is the second largest American company in this sector after ExxonMobil.  This company operates its activities in around 180 different countries and in each sector of the crude oil and gas industry including the exploration and production, as well as refineries, the sale and transport of chemical products and the production of electricity. This company’s share price is notably included in the composition of the Dow Jones Index and can therefore be classified as among the ten largest companies worldwide in terms of turnover.

ConocoPhillips

To conclude, the last major competitor to Royal Dutch Shell is the American group ConocoPhillips, a company that is specialised in the extraction, transport and processing of crude oil.  This company notably owns and operates a network of service stations in a number of countries.


The major partners of Royal Dutch Shell

Rosneft

In 2007 the Royal Dutch Shell group signed a partnership agreement with the Russian petroleum company Rosneft relating to a strategic co-operation and the joint completion of projects relating to the exploration, extraction and transformation of hydrocarbons.

Technip and Samsung

In 2012 the Shell Group signed an agreement to strengthen its partnership with Technip and Samsung relating to LNG floats.

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The factors in favour of a rise in the Royal Dutch Shell share price:
  • First we would note that among this company’s principal advantages is its position among the extra large petroleum companies; it is one of the six largest crude oil and gas companies worldwide.
  • The value of this brand is also significant as the Royal Dutch Shell group is positioned among the leaders of the energy sector worldwide. This enables it to benefit from a strong position in terms of negotiation and attract more clients.
  • Still relating to the strengths of this group we would also draw your attention to the financial growth exhibited by this company from its creation to the present, notably due to a strong expansion strategy and the diversification of its activities.
  • The investments undertaken by the Royal Dutch Shell Company in research and development are also an undeniable advantage that enables the company to offer increasingly innovative and technological solutions in the energy sector and thereby retain a comfortable operating margin against the competition.
  • We also note the admirable ability of this group to form alliances with other large companies worldwide in order to increase its profitability and become more integrated in new sectors or markets through business or technological partnerships or the creation of joint ventures.
  • To conclude we can of course also point out the current international expansion strategy of Royal Dutch Shell as being one of its major strengths. It should be remembered here that the group exercises its operations in over 90 different countries around the world and operates a huge network of service stations which enables it to be present throughout the fuel production and distribution chain.
The factors in favour of a drop in the Royal Dutch Shell share price:
  • First of all, this group often encounters legal problems, resulting in financial losses and a tarnished brand image.
  • The group's activities are also closely linked to the oil market.As a result, its profitability is as volatile as the price of this raw material, which is a notable weakness.
  • Finally, the group is also often singled out for criticism because of human rights and environmental problems that degrade its brand image.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What were the latest performances of the Royal Dutch Shell share?

It is interesting to know the evolution of the Royal Dutch Shell share price in recent years to assess its possible attractiveness for investors. Thus, it should be noted that the change in the price of this share over one year is currently -49.28%. It has also been negative over the last 5 years with -49.02%. The annualized return of the Royal Dutch Shell share, however, remains positive at 9.73%.

What is or what are the stock market indices on which the Shell share is listed?

You must know, if you have read this article dedicated to the Royal Dutch Shell action, that this company is both a British and Dutch company. As a result, its share price is double listed both on the Euronext Amsterdam market and on the LES. Likewise, Shell is part of the calculation of the AMX and FTSE 100 indices which are the benchmarks of these two countries.

How to effectively analyze the Royal Dutch Shell share price?

Analysis of the Royal Dutch Shell share price requires a good understanding of the elements likely to influence it. You must carry out both a coherent fundamental analysis of this value by studying the news likely to make it go up or down and a technical analysis which will be based this time on the study of graphical movements and indicators.

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