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Shell (RDS.A) to Divest its 37.5% Stake in German Refinery
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Integrated energy major Royal Dutch Shell plc and leading refining firm VARO Energy recently reported that they are in advanced discussions regarding the divestment of Shell’s 37.5% interest in the PCK Refinery in Schwedt, Germany. The PCK Refinery has the capacity to refine 220,000 barrels of oil per day.
The value of the deal has not been disclosed as yet. However, Shell expects the deal to help it focus its downstream activity on areas where it can be most competitive. VARO Energy, on the other hand, believes that this deal will enable it to expand geographically to the northern and eastern part of Germany, as well as further optimize its fuels value chain.
VARO Energy – a joint venture between oil trader Vitol and P-E firm Carlyle Group – refines, stores and distributes oil products for the North West European market.
Shell, which is headquartered in Hague, the Netherlands, is one of the largest integrated oil and gas companies in the world. It explores for and extracts crude oil, natural gas and natural gas liquids. It has interests in chemicals as well as power generation and renewable energy.
Shell intends to divest as much as $30 billion by exiting operations in five to 10 countries. It has, however, made relatively slow progress in this regard as the oil price rout dampened buyer enthusiasm for deals at the prices Shell is targeting. In 2016, Shell sold or agreed to sell around $6 billion of assets.
The Anglo-Dutch group’s divestment plans are targeted to weather the more than two-year downturn in oil prices and to improve its financials post the BG Group acquisition.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 21.6%. However, the Shell stock has outperformed the industry by gaining 24.6%.
Shell currently carries a Zacks Rank #3 ( Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ocean Rig UDW LLC and McDermott International Inc. . Braskem and McDermott sport a Zacks Rank #1 (Strong Buy), whereas Ocean Rig carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ocean Rig, on the other hand, delivered an average positive earnings surprise of 66.39% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
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Shell (RDS.A) to Divest its 37.5% Stake in German Refinery
Integrated energy major Royal Dutch Shell plc and leading refining firm VARO Energy recently reported that they are in advanced discussions regarding the divestment of Shell’s 37.5% interest in the PCK Refinery in Schwedt, Germany. The PCK Refinery has the capacity to refine 220,000 barrels of oil per day.
The value of the deal has not been disclosed as yet. However, Shell expects the deal to help it focus its downstream activity on areas where it can be most competitive. VARO Energy, on the other hand, believes that this deal will enable it to expand geographically to the northern and eastern part of Germany, as well as further optimize its fuels value chain.
VARO Energy – a joint venture between oil trader Vitol and P-E firm Carlyle Group – refines, stores and distributes oil products for the North West European market.
Shell, which is headquartered in Hague, the Netherlands, is one of the largest integrated oil and gas companies in the world. It explores for and extracts crude oil, natural gas and natural gas liquids. It has interests in chemicals as well as power generation and renewable energy.
Shell intends to divest as much as $30 billion by exiting operations in five to 10 countries. It has, however, made relatively slow progress in this regard as the oil price rout dampened buyer enthusiasm for deals at the prices Shell is targeting. In 2016, Shell sold or agreed to sell around $6 billion of assets.
The Anglo-Dutch group’s divestment plans are targeted to weather the more than two-year downturn in oil prices and to improve its financials post the BG Group acquisition.
Year to date, the Zacks categorized International Oil and Gas Integrated industry has registered an impressive growth of 21.6%. However, the Shell stock has outperformed the industry by gaining 24.6%.
Shell currently carries a Zacks Rank #3 ( Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ocean Rig UDW LLC and McDermott International Inc. . Braskem and McDermott sport a Zacks Rank #1 (Strong Buy), whereas Ocean Rig carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ocean Rig, on the other hand, delivered an average positive earnings surprise of 66.39% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>