Shell share price: Group wraps up Gabon and North Sea assets disposals

Move comes ahead of oil major’s third-quarter update

Shell share price: Group wraps up Gabon and North Sea assets disposals

Royal Dutch Shell (LON:RDSA) has completed the disposals of its Gabon onshore interests and its North Sea assets package, the Anglo-Dutch oil major has said. The news comes as the company prepares to update investors on its third-quarter performance tomorrow.

Shell’s share price has been steady in London in today’s session, having added 0.17 percent to 2,369.50p as of 14:32 BST, slightly underperforming the benchmark FTSE 100 index which currently stands 0.26 percent higher at 7,512.22 points. The group’s shares have added more than 12 percent to their value over the past year, and are up by more than five percent in the year-to-date.

Shell wraps up disposals

Shell announced in a statement today that it had completed the sale of a package of UK North Sea assets to Chrysaor for a total of up to $3.8 billion. The sale was first announced in January. The Anglo-Dutch oil major separately said that it had wrapped up the disposal of its entire Gabon onshore oil and gas interests to Assala Energy Holdings for a total $628 million.

The FTSE 100 group has been looking to divest $30 billion of assets in an effort to shore up its balance sheet in the wake of BG Group’s acquisition. Last month, the company inked a deal to sell its interest in a Brazilian gas distribution company for $380 million.

Anglo-Dutch oil major to post Q3 results

Shell is scheduled to update investors on its third-quarter performance tomorrow and Proactive Investors reports that RBC Capital analyst Biraj Borkhataria noted in a recent preview that the Anglo-Dutch group would not be as exposed to improving refining conditions as peer BP (LON:BP), which yesterday posted a surge in profits.

“A number of one-offs, both positive and negative could lead to a volatile quarter,” the analyst pointed out. 

As of 14:51 GMT, Wednesday, 01 November, Royal Dutch Shell Plc 'A' share price is 2,369.00p.

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