Shell’s Stake in Atlantic LNG to Decrease as BP’s Increases in Restructuring
December 5, 2023
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Shell ($NYSE:SHEL) PLC is a global energy company with a long-standing presence in the oil and gas industry. Recently, Shell’s stake in Atlantic LNG is set to decrease as BP’s share increases in a restructuring of the company. The restructuring is part of a larger effort to restructure the ownership structure of Atlantic LNG to make it more competitive. The details of the reorganization are still being worked out, but it is expected that BP will take on a larger role in the company. This restructuring could have significant implications for Shell PLC.
Additionally, with BP taking on a larger role in the venture, Shell may have to adjust their strategy and partnerships to remain competitive. Nevertheless, Shell is confident that the restructuring will benefit all parties involved and will improve the long-term outlook of the company.
Share Price
On Monday, SHELL PLC stock opened at $64.9 and closed at $64.9, down by 0.8% from last closing price of 65.4. The drop in share price is likely due to the news that SHELL PLC’s stake in the Atlantic LNG will be reduced as part of a restructuring deal with BP. As per the agreement, BP will take on more of the stake in the Atlantic LNG, while reducing SHELL’s holdings. This could potentially be a cost burden to SHELL PLC, however the company has not disclosed any details as to the financial implications of the agreement. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shell Plc. More…
| Total Revenues | Net Income | Net Margin |
| 339.19k | 29.3k | 8.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shell Plc. More…
| Operations | Investing | Financing |
| 64.03k | -19k | -38.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shell Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 413.5k | 220.55k | 57.55 |
Key Ratios Snapshot
Some of the financial key ratios for Shell Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.4% | 40.1% | 15.5% |
| FCF Margin | ROE | ROA |
| 12.3% | 17.3% | 8.0% |
Analysis
At GoodWhale, we have conducted an analysis of SHELL PLC‘s fundamentals and find the company to be strong in asset and dividend, and medium in growth and profitability. We also note that SHELL PLC has a high health score of 9/10 with regard to its cashflows and debt, indicating it is capable to sustain future operations in times of crisis. Given that SHELL PLC is classified as a ‘cow’, one of several types of companies we assess as having the track record of paying out consistent and sustainable dividends, we believe this company may be of interest to value investors who are looking for dividend yield and stability. More…
Summary
Shell PLC is an integrated energy company that operates in various sectors,mainly oil and natural gas. It is currently undertaking a restructuring of their Trinidad-based Atlantic LNG, in which Shell’s stake will be reduce, while BP’s stake will be increased. Investors should pay attention to this restructuring process, as the changes will likely affect Shell’s share price.
Additionally, Shell’s strategy for the future must also be closely monitored, as it will likely have a major impact on their financial performance in the long run. Lastly, investors should also consider the current market conditions and how they may affect Shell’s stock value in the near future.
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