Shell (LON:RDSa) is trading down 1.15% at 22.775
Shell (LON:RDSa) again boosted its dividend and share repurchases on Thursday after fourth quarter profits hit their highest in eight years, fuelled by higher oil and gas prices and strong gas trading performance.
The strong results cap a year of dramatic recovery for Shell and the oil and gas sector after energy demand and prices collapsed in 2020 in the wake of the Coronavirus epidemic.
Shell shares were up 1.2% by 1015 GMT, compared with a 0.1% decline for the broader European energy index.
Shell, which moved its headquarters from The Hague to London last month, said it expected to increase its dividend by 4% in the first quarter of 2022 to $0.25 per share. This will mark the fourth dividend increase since Shell cut its dividend in early 2020 for the first time since the 1940s.
The company also announced it will buy back $8.5 billion worth of shares in the first half of 2022, including $5.5 billion from the sale of its Permian shale assets in the United States.
That compares with share buybacks totalling $3.5 billion in 2021.
Natural gas and electricity prices around the world have soared since the middle of last year on tight gas supplies and higher demand as economies rebounded from the COVID-19 pandemic.
Benchmark European gas prices and Asian LNG prices hit all-time highs in the fourth quarter. Shell, the largest trader of liquefied natural gas (LNG), said its integrated gas earnings were boosted by “significantly higher” profits from trading.
Trading helped offset an 11% decline in LNG sales and a 7% in LNG production in 2021 as a result of plant maintenance and unplanned outages, including at its flagship Prelude floating LNG plant in Australia.
On technical fronts Shell (LON:RDSa) RSI stood at 61.01 and currently stock is trading above all MA. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : Shell (LON:RDSa) – BUY: 22.83, TARGET: 23.11, STOP LOSS : 22.68