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Shell (SHEL) Division & Idekapital Invest $90M in Kongsberg

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Shell plc’s (SHEL - Free Report) division, Shell Ventures, along with Idékapital, a Norway-based venture and growth capital firm, invested $90 million in Kongsberg Digital Holding ASA, a KONGSBERG business unit. Kongsberg Digital's future growth and development will be supported and accelerated by the funds and new investors. According to the KONGSBERG business unit, the investment is worth $540 million post-money.

Kongsberg Digital, as an industrial software firm, is revolutionizing how organizations build, run and maintain their assets. It is doing so by altering how people work for a better tomorrow. Since its inception in 2016, the company has expanded and solidified its position as the forerunner in the digitalization of heavy asset industries, with a particular emphasis on the energy, marine and renewable sectors.

Businesses depend on Kongsberg Digital for its leading technology in grid balancing and complex power systems, new energy ventures toward Net-Zero, voyage optimization, emissions reduction, and carbon capture and storage.

According to Shane McArdle, CEO of Kongsberg Digital, the company understands the value of digitalizing carbon-intensive industries by deploying new ways of working. He added that the investment from Shell Ventures and Idékapital is a turning point for Kongsberg and stands as a strong recognition of what has been accomplished thus far.

The new owner structure and partnership will aid Kongsberg Digital’s objective of enabling smarter, safer and greener operations across sectors and at a bigger scale.

Zacks Rank & Key Picks

Currently, Shell carries a Zack Rank #3 (Hold).

Some better-ranked stocks for investors interested in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Dril-Quip, Inc. (DRQ - Free Report) . While Sunoco sports a Zacks Rank #1 (Strong Buy), both Murphy USA and Dril-Quip carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past seven days.

Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, has witnessed an upward earnings estimate revision for 2023 and 2024in the past seven days.

Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector. DRQ’s balance sheet is free of debt, highlighting a sound financial position.

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