Right now, it seems like Shell leadership is selling and selling until Shell is small enough to buy. Clearly, Shell has had a fire sale on many of its assets in the US and Canada. But it does not seem like the low profit centers have been sold off leaving only the cream of the crop. Heck, assets tend to be more like the very low end in the P10 to P90 range. So, Shell doesn't even really understand the quality of what they are producing. Should Shell be looking to buy into some assets or should it buy something lock stock and barrel, or stay the path hoping to be bought by a benevolent overlord?
16 replies (most recent on top)
shell just pulled out of power and sold a bunch of power sh-t and fired a bunch of power people
the LT was no good at that industry
Nextera Energy... too many jokes about "the Knights Who Say NEE"
The future is in electrons. Merge with a power company and reap the benefits of being fully integrated. Or merge with Nextera energy, they're already doing that and have a 28% profit margin... But they're an American company so that'd shift the focus to the profitable US rather than the traditional homelands.
Maybe Shell will merge with bp due to the issues bp are having making them a target. But apart from that, it’s easier for Wael to focus on reducing the cost side to increase profit - he’s already getting positive headlines from what he’s done so far. Shell still has a too many employees and spends too much time on things that don’t impact production, so Wael knows there is scope to do a lot more.
Wael’s all staff standup is the same day as BP’s capital markets day. Something tells me that is not a coincidence.
@b3+1jmaxp3zm
that mean's its a prime candidate for Shell to acquire. They always buy assets at a premium and sell off at the lows. Remember the Permian acreage sale to ConocoPhillips.
i imagine they’ll have to pay someone to take their low carbon businesses
I imagine BP will sell their retail, gas and low carbon and onshore businesses. That’ll take care of a lot of their head count. Then they can layoff the redundant people.
they better fire heavier on the BP end
wael the cutter just did two rounds in a row on shell for christs sake
Fire everyone. Set fire to all these sh---y assets.
It’s gonna be BP. The agreement is all but signed
“better assets” come from better leadership decisions, not luck
we did not get unlucky one day and accidental have to sell good assets to buy useless BG or a freaking hydrogen electrolyzer with no customers
that’s incompetence up top
@@a6+
Shell would literally be taking lunch money from Exxon's eemployees...lol
She’ll should merge with Chick-Fill-A so we can have a better cafeteria.
According to Yahoo finance
Shell's profit margin was 5.66%,
BP's profit margin was 0.2%,
Chevron's profit margin was 8.91%,
Exxonmobil's profit margin was 9.81%,
Conoco Philips profit margin was 16.38%
Hess' profit margin was 21.87%
Devon's profit margin was 23.43%.
Maybe just maybe some have better assets\profit centers than others?
Shell has returned about 10% (annually) to shareholders over the last 5 years. Considering 4% of the return was dividend distributions, I would consider that positive for a non-growth investor looking for yield. They are doing great. They just need to stop trying to be a growth company because they are not. They sell a commodity product. Micron is an example of this in the Semiconductor space. Micron is only seeing growth right now because of the AI capital spend. Otherwise it's a company that sells a commodity product that will be at the whims of tech hardware equipment sales (PC, servers, mobile phones).