Shell share price: Group drops petchem plant expansion in Saudi Arabia

on Oct 24, 2014
Updated: Oct 21, 2019
Listen

iNVEZZ.com, Friday, October 24: Royal Dutch Shell Plc (LON:RDSA) and Saudi Basic Industries Corp will not proceed with plans to expand an existing petrochemical joint venture in Saudi Arabia as the results of feasibility studies were not encouraging.

As of 10:00 BST, Shell’s share price was trading 0.09 percent down at 2,208.00p.
**Petrochemical plant expansion suspended**
Royal Dutch Shell and Saudi Basic Industries Corp (SABIC) announced yesterday that they would not pursue further the investment in their petrochemical SADAF joint venture in Jubail, on the Gulf coast of Saudi Arabia, because the studies results were not encouraging.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Sadaf, which is one of the oldest petrochemicals ventures in the Kingdom of Saudi Arabia, produces some 4.7 million tonnes of building-block petrochemicals a year, including ethylene, crude industrial ethanol and styrene monomer.
In 2012, the two companies unveiled plans to explore an expansion of their petrochemical plant. They said at the time that they would jointly carry out the necessary studies to implement the project. The expansion was expected to develop a full range of polyols and styrene monomer propylene oxide plants at the existing Sadaf site.

A Shell spokesman commented yesterday as quoted by Reuters: “Shell and SABIC have agreed not to pursue this investment further but have agreed to continue to have constructive discussions to explore other opportunities for expansion.”


**Analysts on Shell**
Investment analysts at Canaccord Genuity reaffirmed its ‘buy’ rating on Shell’s shares in a note issued to investors on Wednesday. They currently have a 2,800p price target on the stock. Separately, Liberum Capital also reiterated its ‘hold‘rating on the Anglo-Dutch energy major, while, Credit Suisse lowered its price target on the stock from 2,700p to 2,625p.
Analyst Ratings Network reports that the FTSE 100 energy company’s stock currently has a consensus ‘buy’ rating and an average target price of 2,572.86p.
**As of 10:00 BST, buy Shell shares at 2,208.50p.**
**As of 10:00 BST, sell Shell shares at 2,207.50p.**

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Energy & Power Stock Market