RYDAF - Shell Is On The Right Track
2024-06-18 16:32:46 ET
Summary
- Q1 results show solid earnings and operational performance.
- One year has passed since the Shell 2023 Capital Market Day presentation. The company's strategy, which focuses on capital discipline, cost reduction, and portfolio simplification, is progressing well.
- FCF yield supports Shell's remuneration, and there is also a deleveraging path to consider. This means a buy.
Following our update on TotalEnergies SE ( TTE ) with a solid buy rating, it is time to review our Shell plc valuation ( SHEL ) ( RYDAF ). As a reminder, the company is the result of the merger between Shell Transport and Trading and Royal Dutch Petroleum, completed in 2005. In 2022, Royal Dutch Shell was renamed Shell and moved its headquarters to the UK. The company is one of the super-major oil players with arms in low-carbon activities (hydrogen, renewable power, & carbon capture and storage), petrochemicals, and refining & marketing, with more than 45,000 stations. Aside from oil exploration and production, Shell also has one of the most extensive LNG portfolios globally. Here at the Lab, we positively view the OPEC+ Decision , and we see support from a favorable environment for the European integrated oil and gas sector. Taking advantage of TotalEnergies' follow-up, after a brief Q1 comment, we believe Shell still has the potential to grow its share price on a twelve-month basis....
Shell Is On The Right Track