Shell changes priorities. What will happen to its shares

Shell begins the production of "green" hydrogen in CHINA. At the same time, the course for reinvestment in oil production remains .as a source of stable, long-term cash flow.This course could have a double benefit for shareholders

Shell is the largest international oil and gas company based in Europe, the third largest by market capitalization among the majors, whose shares are traded in developed markets. The main divisions of the company are "integrated gas", exploration and production, a segment of petroleum products and the production of organic synthesis products (orgchemistry). The gas segment includes, in addition to gas production, gas liquefaction assets in 11 countries, a fleet of gas carriers, a global LNG trading business, as well as renewable energy and gas liquids (GTL) assets.

The company's strategic focus is on the growth of the LNG and green energy segments, as well as retail, industries that are valued higher by the market than oil production and refining. An increase in dividends and a share buyback program for 2021 is also possible as part of the obligation to return to shareholders 20-30% of operating cash flow (OCF), as well as proceeds from the sale of assets.

Over the past four quarters, the company's LNG sales amounted to 65 million tons - 16% of the world turnover, its gas liquefaction capacity (43 million tons per year) - 9% of the world. Exploration and production is represented by assets in all major regions, including the United States , Brazil, Australia, Nigeria and Oman. In total, hydrocarbon production in the nine months of 2021 amounted to 3.21 million boe/d, including 47% gas and 53% liquid hydrocarbons. The petroleum products segment includes sales divisions and the refining and trading business.