Royal Dutch Shell Share Price Forecast September 2021 – Time to Buy RDSB?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of Anglo-Dutch multinational oil and gas company Royal Dutch Shell (LSE: RDSB) are in the green today, trading around the 1505p range. The shares have reached levels that have not been encountered since mid-March 2021. Many investors are wondering why this is happening and whether it’s the right time to buy RDSB shares.
Royal Dutch Shell – Technical Analysis
According to the financial statement released by Royal Dutch Shell, the market cap of the company is at £111.097 billion with total assets worth £288 billion. Revenue for 2020 was at £132.55 billion with a profit margin of -12.76% compared to £266.54 billion.
Moving averages for Royal Dutch Shell Exponential Moving Average (10)(1461.0), Simple Moving Average (10)(1455.1), Exponential Moving Average (20)(1449.4) and Simple Moving Average (20)(1445.5) are indicating a buy action. Oscillators such as Relative Strength Index (14)(62.5), Stochastic %K (14, 3, 3)(68.5), Commodity Channel Index (20)(231.4) and Average Directional Index (14)(17.1) are neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Royal Dutch Shell released its financials for the first half of 2021 back in July, which showed a continuing upward trend from the last quarter. Net profits increased to $9 billion, which is a 150% increase. However, when comparing these numbers with those in 2019, it has achieved a small increase in profit. But if dividends continue to increase, the company’s attractiveness to investors increases.
The long-term future of oil companies is still unclear as the world moves away from polluting fuels as technology to support clean energy. It has recently challenged a Netherlands ruling that directed the company to reduce its global net carbon emissions by 45% within 2030. Today’s share price surge was caused by the company’s plans to sell its Permian Basin business in the US to ConocoPhillips. The sale will result in $9.5 billion in cash for the company, allowing it to focus on its most profitable gas and oil operations.
The sale is seen as part of the company’s overall efforts to become a net-zero emissions energy business by 2050. The company has also been making strides towards clean energy besides the sale of oilfields in the U.S. It has announced plans for building a biofuel facility in Rotterdam in the Netherlands to produce sustainable aviation fuel and renewable diesel. It has also started its first renewable project in the Middle East in the form of the Oman-based Qabas solar plant.
Should You Buy RDSB Shares?
It remains to be seen how successful Royal Dutch Shell will be in the renewables market. This nagging doubt among investors may be the main reason why RDSB share prices have been relatively muted in spite of a sharp rise in oil prices over the past year. Despite the company improving its prospects and performance, share prices are still about 35% below pre-pandemic levels. Its dividend yield has also decreased, which has gone from double-digit numbers before the pandemic to a current dividend yield of 3.8%.
There are reasons for investors to be optimistic as the company is already starting to change. It has already announced plans to invest billions in renewable energy technology which will help it to diversify away from oil and gas. The group’s robust balance sheet with $400 billion worth of assets provides it with a great deal of financial flexibility. The group’s future prospects remain high and the share price could go up even further in the next few months. Considering all of these factors, investors should think about adding RDSB shares to their portfolios.
Buy RDSB Stock at eToro for just $50 Now!
