Shell plc SHEL, the oil supermajor, has restarted producing and shipping liquefied natural gas (LNG) from its 3.6-million-ton-a-year Prelude floating LNG (“FLNG”) facility following a complete shutdown for more than six weeks owing to industrial action by workers.
The industrial action, which was started by unions protesting for enhanced pay, escalated to a complete shutdown of operations at the facility back in June.
The resumption at the unit, however, comes more than three weeks after the strike was concluded on Aug 25, following an in-principle enterprise agreement reached between SHEL and the Australian Workers' Union and Electrical Trades Union in relation to the Prelude facility.
Shell mentioned that the enterprise agreement has been supported by the majority of employees and is anticipated to come into effect in October 2022. "We are focused on moving forward as a business and delivering affordable, reliable energy to our customers through continued safe, stable production in order to meet the critical global demand for energy security," Shell further stated.
Situated in Browse Basin, about 295 miles northwest of Broome in Western Australia, the Prelude FLNG facility produces natural gas off the coast of Australia. Shell has a 67.5% interest in the facility, while Japan’s Inpex holds a 17.5% stake. Additionally, Korea’s KOGAS holds a 10% and Taiwan’s CPC holds a 5% stake in the unit. Prelude FLNG can produce up to 3.6 million tons per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG.
Headquartered in London, Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with worldwide operations. The company is fully integrated as it is involved in all aspects of energy, from oil production to refining and selling.
Shell currently has a Zacks Rank #3 (Hold). Investors interested in the energy space might also look at some top-ranked stocks — Murphy USA MUSA, EnLink Midstream ENLC and PBF Energy PBF — each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Murphy USA’s 2022 EPS has been revised upward by about 31.9% over the past 60 days, from $18.27 to $24.09.
MUSA beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being 49%.
The Zacks Consensus Estimate for EnLink’s 2022 earnings stands at 41 cents per share, up 720% from the year-ago earnings of 5 cents.
The Zacks Consensus Estimate for ENLC’s 2022 earnings has been revised upward by about 17.1% over the past 60 days from 35 cents to 41 cents per share.
The Zacks Consensus Estimate for PBF Energy’s 2022 earnings stands at $20.38 per share, up about 915.2% from the year-ago loss of $2.50.
PBF beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 78%.
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