Shell: Green For The Planet But Not Your Portfolio

Jan. 11, 2023 12:22 PM ETShell plc (SHEL), RYDAFBP, EQNR, TTE, CVX, XOM44 Comments
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  • Shell plc has stepped up the pace of share repurchases and increased dividends to reward shareholders amid high oil prices.
  • It is, however, the poorest-performing energy stock when compared with European majors like TTE, BP, and EQNR, and has a low valuation.
  • Its low valuation is well-deserved, owing to the risks posed by its court-mandated clean energy transition that doesn't seem to be in the interest of shareholders.
  • In this article, I argue that the ongoing divestments of fossil fuel-linked assets could be value-destroying and that increased tax, legal and regulatory risks in Europe will weigh on the stock.

Focus On Rising Petrol Pump Prices

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Analysts estimate that Shell plc (NYSE:SHEL) will earn revenues of $359.49 billion in FY 2023, a 7% decline from the $388.73 billion it is expected to earn in FY 2022. Like other leading integrated oil and gas companies, SHEL has

SHEL is the European laggard

SHEL is the European laggard (Seeking Alpha)

This article was written by

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We are global investors who invest in good companies at fair valuation and speculate on all else, subject to the risk exposure we can afford

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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