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 (

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.