Shell Absorbs Charges, Pauses Project: Q2 Outlook Dims With Impairments and Biofuels Halt
Portfolio Pulse from Lekha Gupta
Shell plc (NYSE:SHEL) has updated its Q2 FY24 outlook, expecting non-cash post-tax impairments of $1.5 – $2 billion and pausing its biofuels project in Rotterdam. The company revised its production and sales volume guidance across various segments. SHEL shares are trading higher premarket.
July 05, 2024 | 3:01 pm
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NEUTRAL IMPACT
Investors can gain exposure to Shell through the VanEck Natural Resources ETF (NYSE:HAP). The ETF may see minor fluctuations based on Shell's updated outlook and stock performance.
HAP's performance may be slightly influenced by Shell's stock movements, but the impact is expected to be minor given the ETF's diversified holdings.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Investors can gain exposure to Shell through the Direxion Hydrogen ETF (NYSE:HJEN). The ETF may see minor fluctuations based on Shell's updated outlook and stock performance.
HJEN's performance may be slightly influenced by Shell's stock movements, but the impact is expected to be minor given the ETF's diversified holdings.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Shell expects non-cash post-tax impairments of $1.5 – $2 billion in Q2 FY24 and has paused its Rotterdam biofuels project. The company revised its production and sales volume guidance across various segments.
The impairments and project pause are significant but non-cash, and the revised guidance shows mixed signals. The stock is trading higher premarket, indicating a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100