A Closer Look At Royal Dutch Shell’s Energy Transition Strategy

A Closer Look At Royal Dutch Shell’s Energy Transition Strategy

The Shell logo is pictured outside a Shell petrol station in central London on January 17, 2014. ... [+] Shell issued a severe profits warning on January 17 blaming exploration costs, pressures across the oil industry and disruption to Nigerian output, sparking a sharp drop in its share price. The London-listed energy group said in a surprise trading update that fourth-quarter profits were set to be "significantly lower than recent levels of profitability". AFP PHOTO / CARL COURT (Photo credit should read CARL COURT/AFP via Getty Images) Earlier in May, Royal Dutch Shell (NYSE: RDS. A) highlighted the energy transition strategy to transform its offerings consistent with the net-zero emission targets. In 2020, the company's revenues declined by 47% (y-o-y) to $183 billion resulting in a net loss of $21 billion. Thus, the company reported $34 billion of cash from operations which assisted $17 billion of capital expenses and $9. 4 billion of dividends & stock repurchases. Per the new strategy, Shell is targeting a higher share of capital expenditure toward its growth and transition businesses instead of the conventional upstream business. As the company progresses toward net debt of less than $65 billion, the cash capital expenditure is slated