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June 22, 2021, 7:51 a.m. EDT

Royal Dutch Shell’s cash-generation potential is highlighted by JPMorgan as FTSE 100 rises

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By Steve Goldstein

Royal Dutch Shell was named by JPMorgan Cazenove as its top pick in the oil sector, as the broker flagged its cash-generation potential.

The analysts said selling Shell’s Permian Basin assets could fetch at least $10 billion and help not just its decarbonization push but also give balance sheet and capital allocation headroom. At $60 a barrel, net debt could fall below $40 billion by the end of 2022, the analysts said, and that Shell could return a cumulative 18% of its market cap to investors in stock buybacks and dividends between 2021 and 2023.

The U.K. oil and gas sector climbed on Tuesday as Brent crude-oil futures reached $75 a barrel, after closing Monday at its highest level since Oct. 31, 2018. Shell /zigman2/quotes/204253697/delayed UK:RDSB -1.11% rose 2% and BP /zigman2/quotes/202286639/delayed UK:BP -1.13% added 1%, helping the broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.53% rise 0.3%.

Land Securities /zigman2/quotes/207145631/delayed UK:LAND +0.44% and British Land /zigman2/quotes/210491538/delayed UK:BLND +0.21% each rose 4%, as investors bought property stocks on reopening optimism. That reopening optimism weighed on Just Eat Takeaway /zigman2/quotes/216303066/delayed UK:JET -1.12% , the food-delivery service.

Aircraft-parts supplier Senior /zigman2/quotes/200980573/delayed UK:SNR -0.18% slumped 8% to 152 pence after U.S. private-equity firm Lone Star said its fifth takeover attempt, worth 200 pence per share, would be its final offer.

/zigman2/quotes/204253697/delayed
UK : U.K.: London
£ 1,781.40
-20.00 -1.11%
Volume: 1.28M
Oct. 21, 2021 12:15p
P/E Ratio
36.00
Dividend Yield
0.04%
Market Cap
£138.08 billion
Rev. per Employee
£1.52M
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
359.00 p
-4.10 -1.13%
Volume: 6.24M
Oct. 21, 2021 12:14p
P/E Ratio
11.63
Dividend Yield
4.42%
Market Cap
£71.98 billion
Rev. per Employee
£2.21M
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,185.04
-38.06 -0.53%
Volume: 158,138
Oct. 21, 2021 12:15p
loading...
/zigman2/quotes/207145631/delayed
UK : U.K.: London
681.20 p
+3.00 +0.44%
Volume: 285,390
Oct. 21, 2021 12:13p
P/E Ratio
N/A
Dividend Yield
4.11%
Market Cap
£5.18 billion
Rev. per Employee
£1.16M
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/zigman2/quotes/210491538/delayed
UK : U.K.: London
486.20 p
+1.00 +0.21%
Volume: 262,473
Oct. 21, 2021 12:13p
P/E Ratio
N/A
Dividend Yield
3.09%
Market Cap
£4.65 billion
Rev. per Employee
£619,048
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/zigman2/quotes/216303066/delayed
UK : U.K.: London
5,987.00 p
-68.00 -1.12%
Volume: 53,688
Oct. 21, 2021 12:15p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£12.80 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200980573/delayed
UK : U.K.: London
162.50 p
-0.30 -0.18%
Volume: 80,452
Oct. 21, 2021 12:07p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£673.26 million
Rev. per Employee
£124,762
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