This one caught my eyes, because I'm a believer in the Great Rotation, and sooner or later, over-coverage fatigue will set-in with A.I and tech stocks. Not to mention, the power hungry data centers can't be fueled alone with solar or wind. Traditional energy is here to stay. This is also a good diversifier in tech-heavy portfolios (that we all have).
I'm also a half-believer in energy transition bandwagon. This (should) sound like almost a propaganda to anyone with analytical mind of 12 year old. Renewables are fine as a “top-up” source or to smooth out peak demands. EVs – where do they get their power from? Much of logistics, happening with trucks and ships, still remains dependent on oil & gas. It's plain science. A battery simply won't have enough juice to pull a truck load or power a ship across oceans. Just one litre of fuel packs more than 10 units of energy (3 hour charge at 3 KW).
Now specifically for Shell Plc, a few things caught my eyes –
- Q3 guidance and better refining margins outlook
- Expected severe cold winter in Europe
- $3.5B buyback and juicy 4% dividend yield
- Historically low valuation, with rising crude/gas prices
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