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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 +1.93% rose 2% and BP /zigman2/quotes/202286639/delayed UK:BP +1.65% added 1%, helping the broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.37% rise 0.3%.

Land Securities /zigman2/quotes/207145631/delayed UK:LAND +1.95% and British Land /zigman2/quotes/210491538/delayed UK:BLND +2.25% 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 +6.06% , the food-delivery service.

Aircraft-parts supplier Senior /zigman2/quotes/200980573/delayed UK:SNR +0.49% 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
£ 1,795.00
+34.00 +1.93%
Volume: 7.94M
Oct. 15, 2021 4:35p
P/E Ratio
36.28
Dividend Yield
0.04%
Market Cap
£137.72 billion
Rev. per Employee
£1.52M
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
363.60 p
+5.90 +1.65%
Volume: 33.52M
Oct. 15, 2021 4:35p
P/E Ratio
11.78
Dividend Yield
4.36%
Market Cap
£72.33 billion
Rev. per Employee
£2.21M
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,234.03
+26.32 +0.37%
Volume: 0.00
Oct. 15, 2021 4:56p
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/zigman2/quotes/207145631/delayed
UK : U.K.: London
711.60 p
+13.60 +1.95%
Volume: 1.23M
Oct. 15, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
3.93%
Market Cap
£5.28 billion
Rev. per Employee
£1.16M
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/zigman2/quotes/210491538/delayed
UK : U.K.: London
503.40 p
+11.10 +2.25%
Volume: 2.73M
Oct. 15, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
2.99%
Market Cap
£4.67 billion
Rev. per Employee
£619,048
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/zigman2/quotes/216303066/delayed
UK : U.K.: London
5,865.00 p
+335.00 +6.06%
Volume: 195,083
Oct. 15, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£12.49 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200980573/delayed
UK : U.K.: London
162.50 p
+0.80 +0.49%
Volume: 502,800
Oct. 15, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£674.51 million
Rev. per Employee
£124,762
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