Abstract

This report aims to study stock behavior of Royal Dutch Shell Plc. The report includes graphs describing stock and commodity behavior (use relative percent changes through the years, to properly compare stock vs. commodity prices). Shell is one of the largest oil companies in the world. Its operations include upstream and downstream operations spanning 90 countries. The company has interests in oil production operations in several countries and majority interest in many refineries worldwide. Shell operates the world's largest single-brand retail network, with about 45,000 service stations. Therefore, crude oil price has significant impact on the operation of the company. It is expected that oil price movement certainly impact the business of the company. In this report we analyzed the impact of company related news and commodity related news the stock performance of the company and found that company fundamental and crude oil price can move the stock behavior of the company. Shell has a strong balance sheet and a low debt/capital ratio. Strong cash flow from operations should be sufficient to fund investments and pay its dividend; however, should oil and gas prices retreat for a prolonged period, the company may need to increase its debt load.

Royal Dutch Shell plc: Stock Performance

Company Background

Royal Dutch Shell (Shell) is engaged in oil and gas exploration and production, transportation and marketing of natural gas and electricity, and marketing and shipping of oil products and chemicals. The company has interests in oil production operations in several countries and majority interest in 30 refineries worldwide. The company's strong market position gives it significant bargaining power in the global oil industry. However, the company's operations in Iran and Syria, countries against which the US government has imposed sanctions, could exert pressure on Shell's operational and financial results.

Shell is one of the largest oil companies in the world. Its operations include upstream and downstream operations spanning 90 countries. The company has interests in oil production operations in several countries and majority interest in many refineries worldwide. Shell operates the world's largest single-brand retail network, with about 45,000 service stations. The cornerstone of the company is its leadership position in various domains such as oil products, deep-water production, LNG, and polyolefin. The company has established a strong brand image operating for over 100 years worldwide. Shell is ranked fifth in 2011 Forbes Global 2000. The company is ranked second in 2011 Fortune Global 500 ranking. The company's strong market position gives it significant bargaining power in the global oil industry.

Shell is an integrated energy company with exploration, production, and refining operations worldwide. With production of more than 3 million of barrels of oil equivalent (BOE) a day, Shell is one of the largest energy companies in the world. Refineries are in the United States, Europe, and Asia and capacity is expected to be 3.3 million BOE barrels of oil a day in 2012. 2010 year-end proven reserves (including equity affiliates attributable to Shell shareholders) stood at 14.2 billion BOE, 43% of which is oil.

Shell's business operations ...