Shell Weighs $8 Billion Chemicals Sale as Earnings Hit $9.8 Billion

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3▲2 ▼0Impact / 5
Summary · why it matters

Shell plc is weighing the potential sale of its U.S. chemicals operations for as much as $8 billion, part of a broader portfolio optimization push that also includes a new deep-water acquisition and a retail expansion. In September, Shell Offshore acquired a 30% interest in Conifer, an exploration prospect operated by BP in the U.S. Gulf of Mexico, while subsidiary Equilon Enterprises LLC will raise its stake in Tri Star Energy from 33% to 100%, enabling supply arrangements with close to 650 dealer-owned locations and expanding Shell's Mobility & Convenience US portfolio to around 550 company-owned convenience sites. The moves follow a second quarter in which record refinery utilization and upstream production in Brazil drove adjusted earnings to $9.8 billion, with a $3.4 billion working capital inflow helping generate $21.4 billion in cash flow from operations. The recently finalized ARC Resources acquisition eases concerns about resource depletion, though it was financed largely with shares, diluting existing shareholders. Morgan Stanley recently lifted its price target on Shell to $101.30, and the stock closed at $95.61 on October 1, up 29.50% so far in 2026, with a market capitalization of $267.76 billion and a forward P/E of 9.57x.

Impact on assets 3

Energy Transition & Power Demand▲
Shell plc
SHEL
▲ PositiveCapitalrelevance

Shell reported adjusted earnings of $9.8 billion on record refinery utilization and Brazil upstream production, with $21.4 billion operating cash flow.

Financials▲
Morgan Stanley
MS
▲ PositiveCapitalrelevance

Morgan Stanley lifted its price target on Shell to $101.30, a valuation call on a covered stock.

Off-coverage companies 2

Tri Star Energyi
Private▲ PositiveDemandrelevance

Equilon Enterprises will raise its stake in Tri Star Energy from 33% to 100%, enabling supply arrangements with close to 650 dealer-owned locations.

ARC Resources Ltd.i
Private± MixedCapitalrelevance

The finalized ARC Resources acquisition eases resource-depletion concerns but was financed largely with shares, diluting existing shareholders.