SHELL / EQUINOR : Shell, the antidote to Equinor?

Research evidence excerpt

SHELL / EQUINOR : Shell, the antidote to Equinor?

re 6: The next several months could see USD billions from Shell divestments

Assets that Shell is understood to have placed sales mandates upon

Value Comment

SprnG Energy ~$1.8bn Indian solar. In process for some time. Press reports suggest USD1.8bn sought,

from business that we estimate generates cUSD110m EBITDA.

North West Shelf ~$3.0bn Legacy 16.7% interest in 19mtpa facility Australian LNG facility. Press reports

suggest USD3bn value. CVX announced swap with Woodside for similar interest

for value that we estimate at modestly over USD2bn.

LNG Canada ~$4.0bn As discussed in our January note Shell known to be in talks to sell down infra-

structure associated with its 40% interest in 14mtpa LNG Canada. Press reports

suggest valuation could substantially higher depending on stake size.

European wind ~$1.0bn Shell stated to have appointed Rothschild to sell European offshore wind portfolio

in line with strategy of repositioning non-performing/low return capital

Source: BNP Paribas Equity Research estimates;

Post Hormuz discussions on NA Chemicals divestment also back on the table …

These assets aside the company has also appeared more constructive in recent months

on the potential for the divestment of its poorly performing chemical assets, most

specifically those in North America. No doubt in part this has reflected the recent notable

improvement in industry profitability as a consequence of Hormuz, albeit we strongly

suspect likely very short lived.

… supported perhaps by the greater appeal of US assets to ME buyers

Yet perhaps it also reflects the increase in their strategic appeal, not least to Middle

Eastern buyers, that Hormuz closure has also thrown up as Middle Eastern players