THE HAGUE, The Netherlands, September 9, 2013 /PRNewswire/ –
The Board of Royal Dutch Shell plc (“RDS”) (NYSE: RDS.A) (NYSE: RDS.B) today announced the pounds sterling and euro equivalent dividend payments in respect of the second quarter 2013 interim dividend, which was announced on August 1, 2013 at US$0.45 per A ordinary share (“A Share”) and B ordinary share (“B Share”).
Dividends on A Shares will be paid, by default, in euro at the rate of €0.3406 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by September 2, 2013 will be entitled to a dividend of 28.67p per A Share.
Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 28.67p per B Share. Holders of B Shares who have validly submitted euro currency elections by September 2, 2013 will be entitled to a dividend of €0.3406 per B Share.
This dividend will be payable on September 26, 2013 to those members whose names were on the Register of Members on August 16, 2013.
Taxation cash dividends
Dividends on A Shares will be subject to the deduction of Netherlands dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Provided certain conditions are met, shareholders in receipt of A Share dividends may also be entitled to a non-payable dividend tax credit in the United Kingdom.
Shareholders resident in the United Kingdom, receiving dividends on B Shares through the Dividend Access Mechanism, are entitled to a tax credit. This tax credit is not repayable. Non-residents may also be entitled to a tax credit, if double tax arrangements between the United Kingdom and their country of residence so provide, or if they are eligible for relief given to non-residents with certain special connections with the United Kingdom or to nationals of states in the European Economic Area.
The amount of tax credit is 10/90ths of the cash dividend, the tax credit referable to the second quarter 2013 interim dividend of US$0.45 (28.67p or €0.3406) is US$0.05 (3.19p or €0.0378) per ordinary share and the dividend and tax credit together amount to US$0.50 (31.86p or €0.3784).
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* Syria concerns keep investors on edge
* Airlines among top fallers after Ryanair profit warning
* Consumer staples weak on continued emerging market concerns (Adds comment, detail; updates prices)
By Alistair Smout
LONDON, Sept 4 (Reuters) – Britain’s top share index fell on Wednesday, extending the previous session’s losses, as leading U.S. lawmakers’ support for military action against Syria took its toll on investor sentiment.
Airlines suffered steep falls, with worries about disruption from possible U.S. strike on Syria compounding a weak update from Ryanair which traders said had a read-across for the UK-listed sector.
Budget airline easyJet, which reports traffic numbers on Thursday, fell 6.3 percent, while British Airways parent IAG dropped 3.5 percent.
“The market is certainly keeping its eyes on Syria… and if oil prices stay high, airlines would suffer further from that. Ryanair had a profit warning, and easyJet is a very similar airline, so there’s concern that easyJet’s numbers may follow suit,” Lee Armitage, senior trader at Accendo Markets, said.
“It could be a case of easyJet attracting Ryanair’s customers, but there are concerns that we may see even more underwhelming figures from the sector.”
Shares in the Irish group, which said it could miss its full-year profit forecast, sank 14 percent.
The FTSE 100 was down 34.91 points, or 0.5 percent, at 6,433.50 points by 1044 GMT, extending a 0.6 percent fall on Tuesday against a backdrop of investor concern over Syria.
“Upside is going to be limited for now, at least till the Obama attacking Syria situation is resolved,” said Lex van Dam, hedge fund manager at Hampstead Capital, which manages around $500 million in assets.
Late on Tuesday, leaders of the U.S. Senate Foreign Relations Committee reached an agreement on a draft authorisation for the use of force in Syria, paving the way for a vote by the committee on Wednesday.
The index has fallen 2.4 percent since mid-August, with investors nervous about the prospect of instability in the Middle East and many emerging markets facing slowing growth.
Consumer staples that have a lot of exposure to emerging markets were the biggest weight on the index, accounting for 12 points – or a third – of the drop. Weak data from India prompted the central bank to support the currency to stop it hitting a new all time low, with local consumers facing a squeeze.
Also weighing was a fall in the value of stocks trading without the attraction of their latest dividend, including Resolution, TUI Travel (LSE: TT.L – news) , and BHP Billiton (NYSE: BBL – news) , which took 4.23 points off the index.
By Dominic Lau
TOKYO (Reuters) – Asian shares climbed to a two-week high on Monday, and the Australian dollar and copper gained, as China said its manufacturing expanded in August at the fastest pace in more than a year.
A delay in potential U.S. military action against Syria, as U.S. President Barack Obama sought Congressional support, also helped boost short-term risk appetite.
China’s bullish purchasing managers’ index added to recent positive data from the U.S. and Europe, raising hopes the global economy was on a firmer footing.
European shares were expected to open firmer, with Britain’s FTSE 100 seen up as much as 0.7 percent and Germany’s DAX up as much as 0.9 percent, according to financial spreadbetters.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 1 percent, hitting a two-week high and extending a 2.1 percent rise in the previous two sessions, and Tokyo’s Nikkei gained 1.4 percent in light trade. U.S. markets are closed for the Labor Day holiday.
Hong Kong’s Hang Seng Index climbed 1.8 percent and China’s CSI300 index was up 0.5 percent.
Steven Englander, Citi’s global head of G10 FX strategy, recommended investors short the yen on the back of the Chinese figures, the Syrian news, and a panel supporting an increase in Japan’s sales tax.
China’s official purchasing managers’ index (PMI) rose to the highest level since last April and topped market expectations.
“This will reinforce views of China stabilisation. It is a risk positive, if only because it removes some of the short-term risk that the China slowdown could spiral further downwards,” Citi’s Englander wrote in a note.
A separate manufacturing PMI report from HSBC, released on Monday, showed activity in privately owned factories increased over August for the first time in four months.
But India’s manufacturing PMI, also from HSBC, shrank in August for the first time in more than four years, adding to the country’s deepening economic malaise as the central bank struggles to defend the battered rupee currency.
The Indian rupee edged down 0.3 percent to 65.90 to the dollar after two days of gains, and was not far from a record low of 68.80 per dollar hit last week.
Indonesia’s rupiah, which has also been under pressure lately, was down 0.2 percent after the country logged a wider-than-expected trade deficit.
The yen had risen recently on heightened geopolitical tensions and as investors dumped emerging market currencies to position themselves for the U.S. Federal Reserve to begin reducing stimulus, perhaps from its meeting later this month.
“I think the delay in the potential military strikes against Syria will help the global environment in terms of risk,” said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong.
On Monday, the yen slipped 0.5 percent to 98.62 yen to the dollar, pulling well away from last week’s low of 96.81, and eased 0.3 percent to 130.21 to the euro.
The Australian dollar, which is seen as a proxy for Chinese growth because of the two countries’ close trade ties, rose 0.7 percent to $0.8966.
Against a basket of major currencies, the U.S. dollar held steady at a four-week high.
Buoyed by the factory activity data from top-consumer China, copper prices rose 2.2 percent and were on track to end a four-day losing run.
Oil and gold prices fell as investors unwound their positions after the U.S. postponed a military strike against the Syrian government, which is accused of using chemical weapons against civilians.
Brent crude prices dropped 1.1 percent to below $113 a barrel, on track for a third day of declines. They touched a six-month peak of $117.34 last week on concerns that U.S. military intervention could lead to retaliation and disrupt crude supply in the Middle East region, which pumps a third of the world’s oil.
Safe-haven gold dipped 0.3 percent to around $1,391 an ounce after falling as low as $1,379.44, a one-week trough, earlier in the session.
By Manoj Kumar and Rajesh Kumar Singh
NEW DELHI (Reuters) – The collapse of the rupee is derailing India‘s hopes of raising more than $6 billion from the sale of stakes in state-run firms, jeopardizing a key plank of Finance Minister P.Chidambaram’s blueprint to reverse the country’s economic malaise.
Investor confidence has evaporated amid fears over the rising cost of funding India’s gaping current account deficit, prompting New Delhi to delay plans to raise much-needed funds through partial privatizations, finance ministry sources said.
Hit by the U.S. Federal Reserve’s preparations to wind down monetary stimulus, which is driving up borrowing costs globally, India’s rupee has lost 17 percent since May – touching an all-time low of 65.56 to the dollar on Thursday – and the stock market is close to its lowest in 12 months.
“In the current situation, we cannot go to the market. We may have to wait for some more time before the market stabilizes,” said an official who attended a meeting with the finance minister on Monday to plan for the next three months.
Three weeks ago the cabinet deferred a decision on selling an 11 percent stake in hydropower producer NHPC, which it had hoped would raise $300 million, after the power ministry raised concerns it would be undervalued in the current market.
Chidambaram announced in February a target of 400 billion rupees ($6.2 billion) for this fiscal year through partial sell-offs of state-run firms, as part of his efforts to stave off a threatened ratings downgrade by reducing the fiscal deficit to 4.8 percent of GDP.
His ministry has not officially abandoned the target – which many private sector economists already considered optimistic – and is hopeful conditions will improve before the financial year ends next March.
The top official from the finance ministry‘s divestment department, Ravi Mathur, is on a tour this week to Singapore and Malaysia to drum up investor interest in the stake sales and in a proposed exchange-traded fund of state-run companies.
“We need a short window of two months to raise the funds,” a senior government official with direct knowledge of the stake-sale program said. He asked not to be named because of the sensitivity of the issue.
“No one can say with certainty for how long the market will remain volatile,” he said, adding that if it stabilized by the end of next month, the government could sell stakes in companies in October and November.
Past experience, however, shows that hitting the stake-sale target might be difficult. Similar goals were missed in each of the last three fiscal years, when market conditions were better.
India raised 239.56 billion rupees in fiscal 2012/13 against an initial target of 300 billion, and 138.94 billion rupees in the previous year against a target of 400 billion.
While a weak rupee makes Indian assets more affordable to foreign buyers, with no end in sight to the current crash rupee assets bought now will likely lose value in dollar terms.
Currency weakness particularly reduces the attractiveness of Indian Oil Corporation (IOC). Sales of shares in IOC and Coal India Limited were expected to raise the bulk of the total stake sale target for this year.
IOC, the country’s biggest refiner and retailer, sells fuels at state-set lower prices and gets partial compensation for the revenue losses through federal subsidies. However, because of the rupee’s slide, its oil import bill has risen sharply, which has derailed plans to end subsidies on diesel by June 2013.
IOC’s shares have dropped 30 percent since the beginning of May, when the rupee began its descent.
“All our oil companies now face difficult times,” another finance ministry official said, noting it would not be easy to sell the stake in IOC because of the growing revenue losses.
In this fiscal year, which began in April, the government has so far raised $203 million by selling stakes in seven companies, including Hindustan Copper, MMTC Indian Tourism Development Corp. and Neyveli Lignite Corp..
Plans to sell a 10 percent stake in Coal India have already been scaled back to 5 percent because of resistance from unions that now oppose any privatization of the world’s largest coal company. They plan a three-day strike next month to stop the 5 percent sale from going ahead.
“Maybe the process (stake sale) itself might get delayed. (It) may not take place unless the market looks up,” Coal India’s personnel and industrial relations director, R. Mohan Das, told Reuters.
In June, Chidambaram said the government planned to raise nearly 200 billion rupees ($3.15 billion) from the sale of the 10 percent stake in Coal India alone. Now the government could expect to raise just $2 billion jointly from the sales of Coal India and IOC stakes, given current market valuations.
The cabinet approved the IOC share sale this month, the officials said. Divestments in Hindustan Aeronautics Ltd and Bharat Heavy Electricals Ltd. before March 2014 are also key to the government’s plans. ($1 = 64.2900 Indian rupees)
(Additional reporting by Malini Menon and Nidhi Verma; Writing by Frank Jack Daniel; Editing by John Chalmers and Alex Richardson)