uploads///Trading

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

By

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.

Article continues below advertisement

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.

For exposure to integrated energy sector stocks, you can consider the iShares Global Energy ETF (IXC). The ETF has ~56% exposure to the sector.

Advertisement

More From Market Realist