• 1 day Shell Oil Trading Head Steps Down After 29 Years
  • 1 day Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
The Hidden Cost Of Electric Cars

The Hidden Cost Of Electric Cars

As countries across the globe…

Shell Ready to Get Rid of Woodside Stake

Asset Sale

Royal Dutch Shell has reclassified its 13.6-percent stake in Australia’s Woodside Petroleum and now considers it as “an asset for sale”, The Australian Financial Review reports, citing Shell’s chief financial officer Simon Henry, speaking to investors in a conference call.

The reclassification was prompted from the fact that Shell has had the right to appoint just one director at Woodside since it sold a stake in the Australian company in 2014, The Australian Financial Review quoted Henry as saying.

In its second-quarter results release on Thursday, Shell said: “During the second quarter 2016, management concluded that a change in Shell’s level of involvement over Woodside’s financial and operating policy decisions resulted in no longer having significant influence”.

In June 2014, Shell sold 9.5 percent of Woodside’s issued share capital in an underwritten institutional sell-down at AU$41.35 per share, ending up holding 13.6 percent in the Australian company. Woodside planned to buy back another 78.3 million shares which Shell held, worth US$2.680 billion at the time. This would have further reduced Shell’s stake to 4.5 percent, but Woodside’s shareholders voted down the buyback proposal in August 2014.

Related: Forget Inventories – Drilling Cutbacks Will Lead To Much Higher Oil Prices

This accounting reclassification for Woodside came in the quarter in which Shell saw its profits plunge 72 percent. The company reported on Thursday a second-quarter net income dropping to US$1.05 billion, down from US$3.76 billion in the second quarter of 2015. The numbers, the worst quarterly figures in 11 years, stunned analysts and missed forecasts by more than US$1 billion.

Shell attributed the lower profits to persisting low oil prices, increased depreciation with the acquisition of BG Group, weak refining market, and higher taxation. The low oil prices are still a significant challenge across the business, especially in the upstream segment, Shell’s chief executive Ben van Beurden said in the company statement.

By Tsvetana Paraskova For Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News