The Bonds of Shell

Shell is one the largest energy companies in the world. An Anglo Dutch company.

[http://reports.shell.com/investors-handbook/2014/consolidated-data/statement-of-income.html]

Revenue of $421 Billion = £285 Billion

it is about to buy the UK’s BG Group
[www.bg-group.com]

One major finance mechanism for Shell to invest in its energy projects is to raise money is by issuing debts on the bond market.

These are Shell’s listed debt.

http://www.shell.com/investors/financial-reporting/bonds-and-credit-ratings.html

when one looks in detail you get this:-

CHF (m) 1325 = £899m
EUR (m) 12950 = £9548m
USD (m) 33250 = £22557m
GBP (m) 500 = £500m

That is the total outstanding debt on Shell’s bonds.

That is when converted into UK£ = £33,504 m = £33.5 Billion.

So at first glance that is a lot of cash £33.5 billion but then when looks at the revenues of £285 billion, then servicing the £33.5 Billion of debt can not too tricky.

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