Proactive Investors - Shell PLC (LON:SHEL) today underlined how much it is investing in overseas projects just a day after divesting twelve fields in the North Sea and its Bacton gas terminal.
The sign-off on the North Sea disposals followed Chancellor Rachel Reeves' confirmation that the windfall levy on North Sea profits would rise by three percentage points.
Coincidence, probably, but some commentators noted that today’s interim report was about buybacks, cashflow and new overseas fossil fuel developments and very little about greening initiatives, a central plank of the new government’s plans, or the UK.
Shell said it had ‘further strengthened our leadership position in LNG, with an agreement to acquire Pavilion Energy in Singapore, had partnered in the ADNOC Ruwais LNG project in Abu Dhabi and taking final investment decision (FID) on the Manatee backfill project in Trinidad and Tobago
“In addition, it had enhanced an advantaged Upstream portfolio with a focus on cash flow longevity by taking FID on Atapu-2 in Brazil,” said the statement.
While there was a commitment to a carbon capture project in Canada and a new electrolyser in Germany the level of projects 'green' under construction has reduced to 3.8Gw from 4.6Gw a year ago and the move back towards oil and away from the UK was clear, said commentators.
Panmure Liberum commented: “The pivot back towards core O&G business continues,” while Derren Nathan, at wealth platform Hargreaves Lansdown (LON:HRGV), noted: “Mentions of new investments in new energy were conspicuous by their absence.”
Shell’s renewable and energy solutions business posted a US$187 million loss in the half year just ended as power prices stabilised after the surge following Russia’s invasion of Ukraine.
Shares rose 1.3% to 2,877p.