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Royal Dutch Shell: earnings forecasts are revised

Corona and the general situation on the commodities markets are causing Royal Dutch Shell to reduce its long-term assumptions about oil and gas prices. The latest events also mean that Shell will likely face $ 15 billion to $ 22 billion in pre-tax depreciation in the second quarter. This will increase the level of debt. The goal of achieving a debt level of 25 percent has thus moved far into the future. Already in the first quarter, the debt ratio was almost 29 percent.

Investors have little hope of getting higher dividends at Shell. The current quarterly dividend drops 66 percent to $ 0.16 per share. It is not expected that something will change soon.

As before, the analysts at DZ Bank issued a recommendation to hold Shell shares. The price target for the oil share drops from 15.00 euros to 14.50 euros.

For 2020, the analysts forecast earnings per share of $ 0.73 (old: $ 0.98). The forecast for 2021 will be cut from $ 1.70 to $ 1.53. The dividend is expected to be $ 0.64 and $ 0.76, respectively.

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