What’s the Role of Shell’s Trading Activity?


Jun. 23 2016, Updated 12:04 a.m. ET

Shell’s trading activities

Let’s discuss Royal Dutch Shell’s (RDS.A) trading volumes as a percentage of refined product sales. Shell’s trading volumes made up ~54% of sales volumes in 1Q16.

The company’s trading percentage has been calculated as sales volume in excess of refining output divided by sales. This rose from ~51% in 1Q15. Usually, all else being equal, trading margins on refined products are lower than sales margins on refined products.

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Peers’ trading activities

Shell’s peer BP’s (BP) trading volumes stood at ~51% of its refined product sales volumes in 1Q16. ExxonMobil’s (XOM) trading volumes stood at ~22% of its refined product sales volumes during the same period.

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