The oil and gas sector should benefit from the upcoming corona vaccinations worldwide, as the global economy should thus recover. This is good for Royal Dutch Shell’s business too. The oil price has already increased by almost 10 percent in the past few weeks. How OPEC will act with future oil production volumes is completely unclear. However, higher prices traditionally lead to higher production volumes outside of OPEC.
Overall, however, the earnings situation for the industry has brightened somewhat recently. However, structural change continues to be a challenge.
The analysts from Independent Research expect Shell 2020 to have adjusted earnings per share of $ 0.74 (old: $ 0.62). The dividend is said to be $ 0.653 per share. For 2021, the analysts are forecasting earnings per share of $ 1.00 (previously: $ 0.80). Then there should be a dividend of $ 0.666 per share. The dividend yield is thus just under 4 percent.
The analysts continue to recommend holding Royal Dutch Shell’s papers. The price target has been raised from EUR 10.30 to EUR 14.60.
The shares of Royal Dutch Shell gain 3.5 percent to 15,366 euros.