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Shell (RDS.A), Partner Win Offshore Wind Farm Bid in the UK

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Royal Dutch Shell , in partnership with ScottishPower, has jointly secured offers to develop large-scale offshore floating wind farms as part of Crown Estate Scotland’s ScotWind leasing. For this purpose, two sites constituting the total power of 5 gigawatts (GW) of the east and northeast coast of Scotland have been taken over by the companies.

Shell and ScottishPower plan to deliver the new wind farms via two joint ventures, namely MarramWind and CampionWind. Following the completion, MarramWind’s and CampionWind’s floating wind projects could generate around 3 GW and 2 GW of power, respectively, improving the clean energy prospects in Scotland. The country will be able to light up six million homes through clean energy post the project construction, doubling more than from today. The initial development planning has already begun and work will rapidly continue toward final investment decisions.

Both the companies hailed the bid win and expressed confidence in generating floating wind power at a massive scale in the United Kingdom to hasten its transition toward net zero. They believe that offshore wind is set to become a key component of the U.K.’s energy mix going ahead. The projects would also boost manufacturing, improve the supply chain and generate skilled employment locally.   

Royal Dutch Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy from oil production to refining and marketing.

Shell currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently carry a better Zacks Rank. Oceaneering International (OII - Free Report) has a Zacks Rank #2 (Buy).  Murphy USA (MUSA - Free Report) and REX American Resources (REX - Free Report) , each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for Oceaneering’s 2022 earnings is projected at 48 cents per share, which is a mammoth increase of about 164% from the projected year-ago earnings of 18 cents.

Oceaneering beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 62.3%. OII’s stock price has increased around 26.7% in a year.

Murphy USA is valued at around $5 billion. The Zacks Consensus Estimate for Murphy USA’s 2022 earnings has been revised 17.2% upward over the past 60 days from 9.45 to 11.08.

Murphy USA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 20.9%. MUSA stock has rallied around 56.7% in a year.

REX American’s stock price has increased 16% in the past year. REX American beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 93.9%.

The Zacks Consensus Estimate for REX’s 2022 earnings is fixed at $9.30 per share, with an increase of 12.4% from the projected year-ago earnings of $8.27.


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