…both BP’s and ConocoPhillips’ asset sales look downright modest in comparison to the outright fire sale Royal Dutch Shell will soon embark on. Royal Dutch Shell unloaded billions last year, with even greater amounts to be sold off over the next two years. That’s why investors may have legitimate cause for concern about the fate of Shell’s future growth trajectory.
Royal Dutch Shell plans to sell off several billion dollars worth of assets over the next two years. Should investors be worried?
The last year was a tough one for integrated oil majors. Thinning refining margins put a serious dent in downstream earnings, and upstream profitability failed to impress despite cooperative energy prices. As a result, it’s not entirely surprising to see members of Big Oil such as (NYSE: BP) sell off non-critical assets.
Even independent exploration and production major ConocoPhillips (NYSE: COP), which isn’t nearly as integrated as its peers after spinning off its downstream and midstream business, got in on the asset sale game last year.