Investors in Royal Dutch Shell PLC (LON:RDSB) are most likely to be distracted by the corporate and bigger picture issues than the expected reduction in production.
Dividends, share buy-backs and rate of capital spending will be among the focal points for investors.
In a preview, UBS said it expected the oil major to reveal a 5% drop in production on Thursday, reflecting an upstream business “held back” by two interruptions as well as post restructuring asset sales.
The interruptions come from the temporary shut-down of the Forties pipeline in the North Sea (which took 20,000 barrels of oil equivalent per day (boepd) offline for three weeks) and a fire on the Enchilada platform in the Gulf of Mexico (knocking out operations accounting for between 50-60,000 boepd) which is ongoing.
The upstream decline will partially be offset by two new fields, Gorgon and Schiehallion, and expansion in Brazil, said analyst Jon Rigby. The analyst forecasts group production at 3.7mln boepd.
Investors will be most keen to see what happens to the dividend though UBS, which rates Shell a ‘buy’, reckons it will be held at its “already generous” level.
Restructuring progress eyed for Rank
Rank Group PLC (LON:RNK), owner of the Mecca Bingo and Grosvenor Casino chains, has been restructuring its UK operations after tough trading conditions hit its 2017 results.
In the year to June 30, 2017, the company reported lower revenues and profits, blaming “a combination of macro-economic conditions, customer due diligence, venue closures and competitor openings”.
SUBSequently, it kicked off a review of its cost base and decided to cut working hours, remuneration and management roles as well as simplify its organisational structure.
In an effort to lift revenues, it sought to beef up its digital arm amid slowing growth at land-based venues.
“The new financial year has started well and the board looks to the future with confidence,” it said at the time.
Thursday February 1:
Finals: Royal Dutch Shell PLC (Q4) (LON:RDSA), Unilever PLC (Q4)
Interims: Rank Group PLC (LON:RNK)
Trading updates: Vodafone PLC (Q3) (LON:VOD), AG Barr PLC (LON:BAG), Glencore PLC (LON:GLEN), RPC Group PLC (Q3) (LON:RPC)