Valuation - Royal Dutch Shell PLC
A Valuation of Royal Dutch Shell PLC (LON: RDSB) on 4 November 2020
The Company
Royal Dutch Shell PLC, usually called Shell, is a multinational oil and gas company. It is one of the oil and gas supermajors and the third-largest company in the world measured by 2018 revenues (and the largest based in Europe).
Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, transport, distribution and marketing, petrochemicals, power generation, and trading. It also has renewable energy activities, including biofuels, wind, energy-kite systems, and hydrogen and is aiming to be carbon-neutral by 2050.
Shell reports in USD and I have valued the shares in USD.
The Story
In recent decades gas exploration and production has become an increasingly important part of Shell's business. Shell acquired BG Group in 2016, making it the world's largest producer of LNG, with integrated gas becoming an increasing focus of the business (~12% of revenues).
Most of the oil & gas demand lost in 2020 is expβ¦