Oil major Shell PLC SHEL has reportedly decided to exit China’s power markets, aligning with CEO Wael Sawan’s focus on bolstering profitability in its natural gas and oil sectors.
Shell has withdrawn from China’s power value chain, encompassing generation, trading, and marketing, effective since the close of 2023, according to a report from Reuters.
This move reflects a commitment to selectively invest in profitable ventures within the power sector.
The decision to exit China’s power market comes amid a broader effort to streamline operations and save up to $3 billion annually.
The changes do not apply to Shell’s electric vehicle charging business, the report noted, citing a spokesperson.
Also Read: Legal Battle Unmasks Shell’s Under-The-Radar Oil Trading Earnings: Report
Recently, the company set a new ambition to reduce customer emissions from the use of its oil products by 15%-20% by 2030 compared with 2021 and against its previous target of 20%.
Interestingly, Shell had urged shareholders in an AGM notice to vote against an independent resolution, co-filed by a group of 27 investors, that demanded the company set tighter climate targets.
In April, Shell reportedly inked a deal with the Nigerian government to supply gas to the proposed $3.8 billion Brass menthol facility.
Shell stock has gained more than 15% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF HJEN and VanEck Natural Resources ETF HAP.
Price Action: SHEL shares are trading lower by 1.20% at $70.80 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: Nigeria Reportedly Audits Shell’s $1.3B Onshore Oilfield Sale
Photo via Wikimedia Commons
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.