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Message
Shell cuts dividend for first time since WW2
Posted on 4/30/20 at 9:31 pm
Posted on 4/30/20 at 9:31 pm
CNBC Link
Probably a wise decision by Shell in the long run, but speaks to the the difference between previous downturns and this one.
Inb4 something something truck nuts.
quote:
Oil giant Royal Dutch Shell on Thursday cut its dividend to shareholders for the first time since World War II, following a dramatic slide in oil prices amid the coronavirus crisis.
The board at Shell said it had decided to reduce the oil major's first-quarter dividend to $0.16 per share, down from $0.47 at the end of 2019. That's a reduction of 66%.
quote:
The energy giant's results come shortly after a historic plunge in oil prices.
The May contract of U.S. West Texas Intermediate plunged below zero to trade in negative territory for the first time in history last week. Trading volume was thin given it was the day before the contract's expiration date, but, nonetheless, the move lower was extraordinary.
WTI futures had fetched more than $60 a barrel at the start of the year. A dramatic fall-off in demand as a result of the coronavirus outbreak has sent oil prices tumbling.
On Thursday, the June contract of WTI traded at $16.55 per barrel, almost 10% higher for the session, while international benchmark Brent crude stood at $23.81, up around 5%.
Earlier this week, BP reported first-quarter net profit had fallen 67% compared to the same period a year earlier.
Probably a wise decision by Shell in the long run, but speaks to the the difference between previous downturns and this one.
Inb4 something something truck nuts.
3
Posted on 4/30/20 at 9:36 pm to lostinbr
sucks but Shell is known for being very fiscally responsible in protecting their long term goals
Posted on 4/30/20 at 9:36 pm to lostinbr
quote:
Probably a wise decision by Shell in the long run, but speaks to the the difference between previous downturns and this one.
Not really. Speaks to cash flow management.
Posted on 4/30/20 at 9:38 pm to roguetiger15
Yep. They cancelled all employees and executive bonuses for nest year as well.
Very forward looking company. XOM could learn from them
Very forward looking company. XOM could learn from them
Posted on 4/30/20 at 9:40 pm to notiger1997
my dad retired with shell, he was an employee for 42 years- no one can beat their pension.... do they still do a pension?
Posted on 4/30/20 at 9:46 pm to roguetiger15
It’s a mini pension now. But as you stay on with them through the years, the 401K match and pension goes up a lot
Posted on 4/30/20 at 9:46 pm to roguetiger15
quote:
my dad retired with shell, he was an employee for 42 years- no one can beat their pension.... do they still do a pension?
Not any more. Now they give a six figure lump sum upon your retirement.
Posted on 4/30/20 at 9:47 pm to roguetiger15
Do any of the majors give pensions anymore?
Posted on 4/30/20 at 9:47 pm to brass2mouth
figured that. pensions are a thing of the past
my dad got a percentage of his 5th highest paid years averaged. my mom gets 80% of that total when he dies
my dad got a percentage of his 5th highest paid years averaged. my mom gets 80% of that total when he dies
This post was edited on 4/30/20 at 9:50 pm
Posted on 4/30/20 at 9:48 pm to slackster
quote:
Not really. Speaks to cash flow management.
I might be misunderstanding your stance here, but they could have covered the dividend without cutting it. Their free cash flow was up considerably YoY. From what I’ve read so far, this was more of a forward-looking decision.
Posted on 4/30/20 at 9:48 pm to Sun God
quote:
Do any of the majors give pensions anymore?
Yes.
Posted on 4/30/20 at 9:52 pm to CollegeFBRules
ensco just announced today mass layoffs for their gom based employees. will be final on may 31
This post was edited on 4/30/20 at 9:53 pm
Posted on 4/30/20 at 9:52 pm to lostinbr
My dad works at one shell square and he is feeling the heat
Layoffs coming
Layoffs coming
Posted on 4/30/20 at 9:53 pm to notiger1997
quote:
It’s a mini pension now. But as you stay on with them through the years, the 401K match and pension goes up a lot
Has it changed significantly in the past 3-5 years? I interviewed with them a few years back, and their retirement plan was still WAY better than anything I’ve seen elsewhere. The only downside was that there was a fairly long period before you became eligible for pension and company 401k match - either 3 or 5 years I think. But most people don’t take a job with Shell planning to jump ship in a couple of years.
Posted on 4/30/20 at 10:19 pm to brass2mouth
I think the pension thing changed at Shell about 10 years ago. If you hired in before that the standard 80 point pension applies.
Posted on 4/30/20 at 10:20 pm to roguetiger15
quote:
ensco just announced today mass layoffs for their gom based employees.
Diamond filed chapter 11.
Posted on 4/30/20 at 10:43 pm to lostinbr
quote:
Has it changed significantly in the past 3-5 years? I interviewed with them a few years back, and their retirement plan was still WAY better than anything I’ve seen elsewhere. The only downside was that there was a fairly long period before you became eligible for pension and company 401k match - either 3 or 5 years I think. But most people don’t take a job with Shell planning to jump ship in a couple of years.
Shell puts money in to your 401k even if you don’t. They start out at 2.5% in years 0-5
Goes up to 5% at years 5-10 and then jumps to 10% afterwards.
Upon retirement now, you get a six figure lump sum to do with as you please plus your 401k. If you managed it well and were putting in yourself, you’ll be doing pretty good when you bounce.
However, as another guy poster said if you were hired on about 10years ago you were still eligible for the pension.
Posted on 4/30/20 at 10:46 pm to CollegeFBRules
quote:
Yes
New employees? Damn I picked the wrong company
Posted on 4/30/20 at 10:58 pm to lostinbr
quote:
I might be misunderstanding your stance here, but they could have covered the dividend without cutting it. Their free cash flow was up considerably YoY. From what I’ve read so far, this was more of a forward-looking decision.
They clearly don't believe they could continue to do that, hence the substantial cut. Their CEO explicitly said they'd have to borrow to pay the dividend. They've borrowed to cover it in thr past, as do many other majors.
My bigger point is Shell's decision doesn't necessarily mean this downturn = the worst since WW2. It's an independent decision. If Chevron and Exxon follow suit tomorrow, you may have a point.
Posted on 4/30/20 at 11:29 pm to djangochained
quote:
My dad works at one shell square and he is feeling the heat
Layoffs coming
What’s your dad do for the GoM? Contractor or Shell employee?
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