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Shell Stock Rises 1% in Pre-market, Company Reported Q1 Earnings that Beat Analysts’ Estimates

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by Steve Muchoki · 3 min read
Shell Stock Rises 1% in Pre-market, Company Reported Q1 Earnings that Beat Analysts’ Estimates
Photo: Depositphotos

During the first quarter, Shell company managed to reduce its debt by $4 billion to $71.3 billion. 

The Royal Dutch Shell Plc (NYSE: RDS.A) stock was up approximately 1% during Thursday’s pre-market and was trading around $39.50. Shell stock closed Wednesday’s market trading at $39.08, up approximately 1.45%. The spike was attributed to the first-quarter earnings results that ostensibly beat analysts’ estimates.

Notably, the Anglo-Dutch company reported its adjusted earnings per share of $3.2 billion versus $3.1 billion estimated by analysts according to a survey conducted by Refinitiv according to CNBC. Putting the earnings into a proper perspective, the company reported adjusted earnings per share of $2.9 billion last year during the same period. Additionally, the company reported adjusted earnings per share of $393 million during the fourth quarter.

The company noted that the oil industry has begun to rebound from the coronavirus devastation as governments roll out various covid vaccines. To represent the argument numerically, Shell stock added approximately $17.96 last year while the rally year-to-date is up approximately 11.21%.

Shell Stock and the Market Outlook

At the height of the coronavirus pandemic, Shell sold some of its global assets to help with the company’s liquidity among other needs. Notably, the company sold the Appalachia shale gas position for $541 million to the National Fuel Gas Company (NFG). Additionally, Shell Signed an agreement with a consortium to sell its upstream assets in Egypt for approximately $646 million.

Having recorded positive earnings results at the beginning of the year, the company anticipates reporting better results in the coming quarters as the global economy recovers from the pandemic.

Ben van Beurden, CEO of Royal Dutch Shell, said in a statement that the company had made a “strong start” to the year and was “ideally positioned to benefit from recovering demand.”

During the first quarter, Shell company managed to reduce its debt by $4 billion to $71.3 billion. According to the earnings report, the company anticipates reducing its overall debt to $65 billion as part of its sustainable future.

Forward, the company advised its investors that there are possibilities of sales volume plummeting during the second quarter. This is due to the market uncertainty that is fueled by the ongoing Covid pandemic. “Such measures will likely have a variety of impacts on our operational and financial metrics,” Shell said.

According to metrics provided by MarketWatch, the company has a reported market valuation of approximately $143.67 billion, with approximately 2.05 billion outstanding shares. Shell stock ranged between $23.07 and $44.50 in the past 52 weeks. Notably, a survey conducted by MarketWatch indicates Shell stock received an average of Buy rating from 30 ratings.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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