Shell (SHEL) Trades Russian Gas Despite Withdrawal Pledge
Shell plc (SHEL), an oil supermajor, is engaged in Russian gas trading, even after pledging to withdraw from the country’s energy sector more than a year ago, per media reports.
According to a research conducted by the campaign group Global Witness, Shell participated in about one-eighth of Russia's shipborne gas exports in 2022. Per the group, a thorough assessment of every liquefied natural gas (LNG) cargo coming from Russia during March-December 2022 found that Shell was in charge of trading almost 12% of the country's total LNG exports.
A Shell spokesman revealed that the company has stopped buying Russian LNG on the spot market. The transactions, according to management, were the outcome of long-term contractual commitments. Shell has been clear about not breaching any applicable laws or regulations of the countries it operates in.
Following the invasion of Ukraine in March 2022, the company apologized for purchasing a cargo of Russian oil and announced that it would stop operating in the country’s gas and oil sector. SHEL pledged to stop importing oil from Russia, and sell its gas stations and other enterprises there, both of which have been accomplished. It has also terminated its joint ventures with Gazprom, a major state energy company.
Zacks Rank & Key Picks
Shell is a group of U.S. and Europe-based big energy multinationals with operations across the world. Currently, the company carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and RGC Resources Inc. RGCO. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and RGC Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries — Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
