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Leading integrated energy firm, Royal Dutch Shell plc (RDS.A - Analyst Report) recently launched a high-quality diesel fuel that is expected to offer three additional levels of protection to diesel engines.

The Shell Diesel FiT™ (Fuel Injection Technology) will protect against fuel injector deposits and has anti-wear and anti-corrosion properties to curb performance degradation. Also, in cold weather, the ultra-low sulphur diesel is expected to prohibit fuel gelling.

The company chose Waco-Temple in Texas as one of the two areas to introduce its new product, which will be available in more than 60 Shell stations. The aim for launching Shell Diesel FiT is to support the growing demand of diesel engines seen in recent times.  As the diesel vehicles’ market expands for both personal and professional use, Shell will have a greater opportunity to realize profits.  

Shell owns one of the largest integrated oil and gas businesses in the world. The group is involved in various activities related to oil and natural gas, chemicals, power generation, renewable energy resources, and other energy related businesses.

The company has a strong and diversified portfolio of development projects that offer attractive long-term opportunities. Moreover, its healthy dividend yield and reasonably cheap valuation are other positives.

However, the company is particularly susceptible to high exposure to the downstream business, its major natural gas focus and lofty capital spending.

Shell currently carries a Zacks Rank #3 (Hold), implying a performance in line with the broader U.S. equity market over the next one to three months.

Meanwhile, other stocks to consider in the energy sector include Abraxas Petroleum Corp. (AXAS - Snapshot Report), SM Energy Company (SM - Analyst Report) and Matador Resources Company (MTDR - Snapshot Report). These stocks currently hold a Zacks Rank #1 (Strong Buy).

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