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18/10/2021

Royal Dutch Shell stock

Royal Dutch Shell, commonly known as "Shell", is one of the world's largest oil companies. Of Anglo-Dutch origin, the eminent company is present on all continents. 

This guide provides key information that can help you in your future investment projects. 

History

The history of this oil giant begins in 1897. At the time, the company was called "Shell Transport and Trading Company". Its founder, Marcus Samuel, was the descendant of antique dealers who had been importing shellfish since 1833. 

Despite its success, the company quickly came up against a major competitor, Royal Dutch Petroleum. In 1907, Shell Transport and Royal Dutch merged to pool their strengths in the face of new competitors such as Standard Oil. Its current name Royal Dutch Shell was adopted in 2004.

The formalities of the time made it too complicated for the stock exchange listings to be pooled. So Royal Dutch continued to keep its shares listed in Amsterdam, while Shell Transport's assets were traded on the London Stock Exchange.

From the 2000s onwards, Royal Dutch Shell sold several of its shares on the stock market and cut several jobs. The reason was the low price of crude oil. However, the company discovered a new oil field in May 2021. The site in question is in an area where the company already has several wells.

Royal Dutch Shell activities

As a reminder, Royal Dutch Shell is a company specialized in the oil industry. Its main activities include refining and distribution of petroleum products, crude oil and natural gas exploration and production, and elaboration of petrochemical products.

The Royal Dutch Shell business model 

Royal Dutch Shell's business model is based on the sale of oil and gas products. In recent years, the company has also begun to invest in solar energy production infrastructure. 

Royal Dutch Shell seeks to extract while respecting the environment. The company also uses natural elements to obtain energy resources.

The company also develops onshore and offshore fields.

Royal Dutch Shell's IPO and listing on the stock exchange

The current market capitalization of Royal Dutch Shell is estimated at 151 billion euros. The company's business is doing well. This year, the company has so far generated a figure of 18, 046 billion euros. The 2021 yield on a share of the company is 3.49 %. Experts estimate that this rate will increase to 3.75 % for next year. 

Respectively for 2021 and 2022, Royal Dutch Shell's PERs will be 8.14 and 8.60.

Royal Dutch Shell trading information :

  • Isin code : GB00B03MLX29 
  • Market : London
  • Share price on June 03, 2021 : EUR 16,394

Factors influencing the Royal Dutch Shell share price

Royal Dutch Shell’s biggest asset is its reputation. Currently, the company is among the six largest entities in the oil and gas industry. 

From its beginnings to the present day, Royal Dutch Shell has constantly evolved. Its share price on the stock exchange has risen steadily. This means that its stock has a stable value over the long term. 

Beware, however, of the potential exponential growth of the electric car market. This would indeed risk damaging Shell's share value. Other than that, there are no major threats to the future of this strong global company.  

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