Royal Dutch Shell (LON:RDSA) has inked a deal to offload its upstream assets in Denmark for $1.9 billion, the Anglo-Dutch oil major has said. The move is in line with the group’s $30-billion divestment programme which the company launched in the wake of its acquisition of BG Group.
Shell’s share price has inched lower in London in today’s session, having given up 0.18 percent to 2,500.50p as of 14:38 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally into positive territory and currently standing 0.15 percent higher at 7,069.64 points. The group’s shares have added just under 10 percent to their value over the past year, as compared with about a 5.8-percent drop in the Footsie.
Shell offloads Danish assets
Shell announced in a statement today that it had reached an agreement with Norwegian Energy Company ASA (Noreco), to sell its shares in Shell Olie-og Gasudvinding Danmark B.V. for a consideration amount of $1.9 billion. The sale is subject to regulatory approval and expected to be completed next year.
“Today’s announcement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment programme, and contributes to our goal of reshaping the company into a world class investment case,” Andy Brown, Shell’s Upstream Director, commented in the statement.
Analysts on blue-chip oil major
JPMorgan Chase & Co, which sees Shell as an ‘overweight,’ boosted its price target on the shares from 3,100p to 3,250p, while HSBC, which rates the oil major as a ‘hold,’ lowered its valuation on the stock from 2,880p to 2,850p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 2,922.19p.
Shell is scheduled to updated investors on its third-quarter performance on November 1.