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A "solid Shell man," new CEO Ben van Beurden has worked for Shell (RDS.A +0.3%) for 30...

A "solid Shell man," new CEO Ben van Beurden has worked for Shell (RDS.A +0.3%) for 30 years, turning around the chemicals business and spending 10 years in its liquefied natural gas business. But Chairman Jorma Ollila's comment that the new CEO would "continue to... develop the strategic agenda we have set out" suggests there's no real change ahead - which leaves little for investors to get excited about.
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Comments (3)
  • Ray Merola
    , contributor
    Comments (4124) | Send Message
     
    Shell management has offered investors a four-year plan that highlights several initiatives. Here's the synopsis, excerpted from my recent S.A. article about it:

     

    "...Shell management had previously announced an ambitious, 2012-to-2015 financial growth plan. There are four cornerstones:

     

    1. Improve operating cash flows between 30 and 50 percent versus the previous four-year period; the target is OCF of $175 to $200 billion over the period;
    2. Capital investment of $120 to $130 billion over the period; emphasizing the following three lines of business: Integrated natural gas opportunities, Deepwater production, "Tight" hydrocarbon / shale resource plays
    3. Maintain a strong balance sheet;
    4. Link the cash dividend to the results...."

     

    Why in the world would a new CEO try to undo that initiative? For what purpose? The plan was set in 2012 and runs through 2015. The commentator may not understand much about the energy business. Super Major strategic plans are generated that take years to unfold. They are not "flavors of the month." The capital and resources required are enormous.

     

    "....there's no real change ahead - which leaves little for investors to get excited about....."

     

    Pure silliness.

     

    Here's the entire article for those interested:

     

    http://bit.ly/1a8FTUi
    9 Jul 2013, 11:33 AM Reply Like
  • chuck lewis
    , contributor
    Comments (417) | Send Message
     
    Editor The Lewis Letter
    Mr. Merola's comments are on the money and aptly describes the new CEO's map of excellence established by the current chief. Why alter a sound, sensible program that works. The author missed the rig.
    9 Jul 2013, 12:37 PM Reply Like
  • rhiannion
    , contributor
    Comments (422) | Send Message
     
    Thank you for the info; if their facetious comments should bring stock down some, it will be a buying opportunity. I could use double of what I have at 66.
    9 Jul 2013, 12:05 PM Reply Like
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