NEW YORK (TheStreet) -- Shares of Royal Dutch Shell are trading higher by 6.13% to $66.80 in afternoon trading Tuesday on very heavy volume, as oil prices rally for a third consecutive day, CNBC reports. WTI crude for March delivery was last up 6.54% to $52.81 a barrel as of 3:02 p.m., while Brent crude was up 5.61% to $57.82, according to CNBC. Oil giant BP announced that it would cut capital spending for 2015 by 13% to $20 billion in 2015, which will help to reduce the global glut in oil supply, CNBC added. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Similarly, Chevron has also cut back on its capital expenditures by 13% to $35 billion, after reporting a 30% decline in its fourth-quarter earnings. Plus, Shell will begin a public consultation this month to dismantle the Brent Delta platform in the North Sea. Shell says Brent has produced around four billion barrels of oil equivalent since 1976, according to the Associated Press. About 7.93 million shares of Shell traded hands as of 3:13 p.m. ET, compared to its average trading volume of about 4.59 million shares. U.K.-based Shell is an independent oil and gas company, operating in three segments including upstream, downstream and corporate. Separately, TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate ROYAL DUTCH SHELL PLC (RDS.A) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: Net operating cash flow has significantly increased by 59.38% to $9,608.00 million when compared to the same quarter last year. In addition, ROYAL DUTCH SHELL PLC has also vastly surpassed the industry average cash flow growth rate of -2.03%. RDS.A's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.93 is somewhat weak and could be cause for future problems. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ROYAL DUTCH SHELL PLC's return on equity is significantly below that of the industry average and is below that of the S&P 500. The gross profit margin for ROYAL DUTCH SHELL PLC is currently extremely low, coming in at 12.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.83% trails that of the industry average. You can view the full analysis from the report here: RDS.A Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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