Royal Dutch Shell a global group of energy and petrochemical companies. I have a holding in my income portfolio (epic code: RDSB)
Royal Dutch Shell announced their full year results yesterday. Revenue for the year was $421.1bn down 6.7%, on production output for oil & gas that was down 4%.
Shell's return on capital employed is just under 15% and with a weighted average cost of capital of 10% there is little margin of safety.
The share price was down to 2104.5p today and if the dividend remains at the current level, on a prospective yield of 6% and assuming an EPS of $3 for 2015 on a prospective P/E of 10.5. Good value if the oil price recovers over the next 24 months, before pressure is put on the sustainability of the level of dividend.