The company also said on Tuesday its medium-term growth priorities were deepwater projects in Brazil and the Gulf of Mexico and its chemicals division, particularly in the United States and China.
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“Our strategy should lead to a simpler company, with fundamentally advantaged positions, and fundamentally lower capital intensity”, said chief executive Ben van Beurden, ahead of the company’s Capital Markets Day.
“As well as low oil prices today, we are seeing higher levels of price volatility, due to geopolitical change, the speed of information flows, and the pace of innovation in our sector”. Goldman Sachs reissued a “buy” rating and issued a GBX 1,805 ($26.42) price target on shares of Royal Dutch Shell Plc in a research report on Tuesday, February 16th.
Royal Dutch Shell now has 7,173,399,000 shares which are outstanding with shareholders and have a share price of 1741.5 bringing Royal Dutch Shell’s market capitalisation to 124.92B GBP.
Shell added $1bn (£690m) to its estimate of gains from the takeover of BG Group as it set out a plan to support its dividend in an era of low oil prices.
According to Shell, integrated gas has reached critical mass after the BG acquisition, but new investment is expected to slow here.
The merger has turned Shell into the world’s second biggest global oil company behind Exxon Mobil and the top LNG trader.
On the sales front, Shell said it has a target to generate between $6bn and $8bn in 2016.
While it did not mention the countries it might exit, the Anglo-Dutch multinational said it would cut $4.5bn of spending before tax in 2018. Reuters has reported that Shell plans to sell its assets in Gabon. The company expects to “make significant progress” on as much as $8 billion of its sale program this year.
In an update, the company said it expected to “achieve and exceed the $3.5bn synergies prospectus commitment earlier than expected, in 2017, when synergies should be $4bn”.
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Low oil prices make it more hard for Shell to sell its assets.
