Shell share: 30 euros still 2022?!
The Shell share has delivered a very solid performance in the current quarterly reporting season. The bottom line is that earnings grew and cash flow developed splendidly. In the first quarter, the British oil and natural gas group achieved a value of $14.8 billion in operating cash flow alone.
In return, there was not such strong growth in other areas. Those who were hoping for a big increase in Shell's dividend, or even an increase in share buybacks, may be disappointed. 4% more dividend is what we can take away from the quarterly figures.
Nevertheless, Shell shares are in demand and rising after the presentation of these figures. Can the share regain the 30 euro mark in no time? Yes, perhaps even in 2022.
Shell share: The market as a driver! For me, at any rate, the Shell share has a good chance of reaching this valuation level now. Perhaps to make this comparison as well: In 2018, the stock traded above this level, although Brent and WTI tended to scratch the $80 mark. This means that at the current oil price level of over 100 US dollars per barrel on average, we have even more attractive market conditions.
I would argue: more stable, too. It is true that the oil market has been volatile very often in the last decade. At the moment, however, there is a setting in which there is not even a theoretical possibility that supply and demand will meet. The shunning of Russian oil due to the Ukraine conflict, less investment in exploration in recent years and an OPEC+ at the limit are fundamental limits. Therefore, we can assume that the oil price has a downside limit.
Even if we assumed that the oil market would plunge 20% or 30%, we would still be at about 2018 levels. But there is just a limit to the downside. For me, this is a very good perspective, which is why Shell shares can climb above 30 euros. Simply because the oil market is so stuck in terms of the supply and demand situation. Even minor, temporary dampers such as a partial shutdown in China have made no difference to the level.
Source: https://t1p.de/5znt
Do you have Shell in your portfolio?
Shell is currently the largest position in my portfolio.
Since I bought most of it at the Corona low, I am also standing with a big plus :)
