TONY SHEPARD | CHARLES STANLEY
The share price has been weak ahead of these results and understandably, the share price has initially fallen on publication of the results but longer term, Shell has set out a strong set of new growth priorities. Our recommendation remains Accumulate.
RICHARD HUNTER | HARGREAVES LANSDOWN
The initial disappointment of this update does not detract from the longer term view, where Shell’s drive for progressive business and dividend growth remains strongly on track. the market consensus of the shares as a buy and the sector’s preferred play is likely to stay intact. Shell is striving to boost production and is expecting some of its projects shortly to reach full production.
STUART JOYNER | INVESTEC
We are concerned about Shell's ever-rising investment expenditure, which could mean the company is spending "more for less" with costs coming in higher than forecast, for less return. We expect to see material downgrades to the consensus FY2012/13 earnings numbers. The overall result represents a substantial undershoot. Gearing fell to 13 per cent so the company has the ability to sweeten the earnings and capex disappointments if it choses to.
