Citi Downgrades Royal Dutch Shell (RDS.B) to Hold

March 18, 2009 9:10 AM EDT

Citi downgrades Royal Dutch Shell (NYSE: RDS.B) from Buy to Hold.

Citi analyst says, "Consistent application of a well understood long-term strategy- For the long-term investor the underlying RD Shell investment thesis remains essentially unchanged. Predicated on 2009-12 project delivery and further maturation of a mega-project heavy resource base the company offers a level of visibility on its long-term growth options which others in the sector may be seen to lack...But the medium-term must be negotiated first - However, performance over the next 12 months will be constrained by relatively limited visibility on the medium-term interplay between free cash generation and production growth, in our view. Specifically, we regard visibility around the speed and magnitude of capex declines as the mega-projects are delivered, and production evolution post-2013 without imminent new project sanction, as low."

Royal Dutch Shell plc (Shell) is a holding company, which owns, directly or indirectly, investments in the numerous companies constituting the group. Shell is engaged globally in the aspects of the oil and natural gas industry

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