Caution urged ahead of Shell earnings report, Argus says

|By:, SA News Editor

Caution is warranted ahead of Royal Dutch Shell's (RDS.A, RDS.B) Q2 earnings, Argus says while reiterating its Hold rating on the shares as management restructures (Briefing.com).

While the restructuring should be a positive for shareholders over the long term, Argus does not expect any meaningful improvement in Shell's operating results over the next 12 months; the firm also says the shares deserve to trade at a discount given the company's declining production, unfavorable production mix, and underperforming upstream Americas and downstream businesses.