Royal Dutch Shell (LON:RDSa) Plc UP 1.51% AT 83.88
Royal Dutch Shell (LON:RDSa) Plc reduced its debt burden in the first quarter, with profit rising by more than expected due to the recovery in global oil and gas markets.
As investors demand higher returns, Shell took another step toward giving them what they want. After slashing its dividend last year, the company went ahead with a planned 4% increase to the payout. It also managed to pay off $4.1 billion of net debt, moving closer to the level of borrowing that will allow it return extra cash to shareholders.
“Shell has made a strong start to 2021,” Chief Executive Officer Ben van Beurden said in a statement on Thursday. “We have reduced net debt by more than $4 billion this quarter, progressing towards the $65 billion milestone to increase shareholder distributions.”
First-quarter adjusted net income was $3.23 billion, up from $2.86 billion a year earlier, Shell said. That compares to an average analyst estimate of $3.06 billion. It was the highest profit since the third quarter of 2019, joining Total SE, BP (NYSE:BP) Plc and Equinor ASA (NYSE:EQNR) in restoring earnings to pre-pandemic levels.
On technical fronts Royal Dutch Shell (LON:RDSa) Plc RSI stood at 47.35 and currently stock is trading Above 5 days MA and Below 20 and 50 days Moving Averages. So, SELL position can be taken with following target and stoploss.
TRADE SIGNAL -: Royal Dutch Shell (LON:RDSa) Plc – SELL: 16.23, TARGET: 16.13, STOP LOSS: 16.47