| Shell Junks Westward Ho Project on Waning Shipper Interest | |
| | |
|
Energy major Royal Dutch Shell plc RDS.A has decided to call off its Westward Ho pipeline project which would have transported crude oil from St. James, LA to Houston.
The pipeline was anticipated to start operating this year with its peak capacity being 900,000 barrels each day. However, waning shipper interest in the pipeline owing to challenging business conditions has compelled Shell to scrap the project.
Another reason behind the energy major’s exit from the planned project is that other pipelines have already started transporting significant amounts of crude to the Houston area.
U.K-based Shell is one of the largest integrated energy firms in the world with a strong and diversified portfolio of development projects that offer attractive long-term opportunities. The company’s decision to acquire BG Group, U.K.’s third largest energy player, for $70 billion, is a major positive. Moreover, the company reported impressive second-quarter 2015 financial results in spite of an unfavorable business environment.
However, with crude prices remaining low, Shell’s upstream division is likely to extract less value for its products. Additionally, Shell’s ADRs are expected to remain soft due to its major natural gas focus and lofty capital spending.
As a result, the company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, better-ranked players in the energy sector include Seadrill Partners LLC SDLP, Alon USA Partners, LP ALDW and Halcón Resources Corporation HK. All the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report HALCON RESOURCS (HK): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report ALON USA PTNRS (ALDW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
|
|
|
Royal Dutch Shell
|
|
|
CODE : RDSA.AS |
ISIN : US7802592060 |
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Dutch Shell est une société de production minière de pétrole basée au Pays-Bas. Royal Dutch Shell est cotée au Pays-Bas, au Royaume-Uni, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 187,4 milliards €UR (214,0 milliards US$, 191,9 milliards €). La valeur de son action a atteint son plus haut niveau récent le 24 mai 2018 à 31,38 €UR, et son plus bas niveau récent le 30 octobre 2020 à 10,10 €UR. Royal Dutch Shell possède 8 222 179 840 actions en circulation. |