You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Royal Dutch Shell

0
Written by: YourMoney.com
16/10/2017
Graham Spooner, investment research analyst at The Share Centre, picks Royal Dutch Shell as stock of the week.

It appears that Royal Dutch Shell is exploring a future beyond oil with group’s moves to buy ‘NewMotion’, a Netherlands based company, which owns 30,000 electric-vehicle charging points across Western Europe. Shell told the market that this move will complement the company’s existing roll-out of charging stations and there were no plans at this stage to integrate the two.

Shell is known for finding and refining oil, and is the largest listed company in the UK. In recent years the company has been going through some major restructuring programs, which should lead to cost efficiencies, increased production capacity and higher cash flows. However, interested investors will know that the recent lower oil price environment has led the company to rein back on major investment programs.

It is reassuring, however, that Shell’s first half 2017 profits jumped to just over $5bn versus the $1bn in the first half of 2016. It showed that recent trends of better average oil prices, better operational performance, significantly reduced operating expenses and stronger conditions in the chemicals and refining sector have continued.

The oil price trending higher since June and potential for further restructuring benefits and new production sites in 2018, could all help restore market confidence. Moreover, the income is attractive but investors should be wary that any fall in the oil price could once again raise questions about the company’s ability to maintain its dividend.

We continue to recommend Royal Dutch Shell as a ‘buy’ for investors seeking income and willing to accept a low to medium level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
energy bills
Your energy supplier could move you onto another fixed deal

Customers who come to the end of a fixed deal could be rolled onto another similar fix rather than a...

Close