Just looked at the earnings for Shell’s chemical business coming up and margins dropped from 160 to 140 a metric ton, obviously giving the business a significant loss on top of the business already struggling. I think this is pretty much the last straw and Shell will either be closing or fire selling all chemical assets to stop the bleeding. Any thoughts?
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@s2 the ‘Lift & Shift’ shtick has been around for a while.
And now we have another wonderfully stealthy label: “Lift and Shift.”
Who, exactly, is still taking the LT at their word?
It is the same playbook every time, merely dressed up under a new heading, with precisely the same outcome.
A bunch of clowns running the circus, insisting it is all perfectly under control.
yep. “no reorg this year”.
right. sure. they’ll call it some other name. reshape, reorg, tweak. but a rose by any other name would smell just as sweet.
fire sale assets as usual. fire IT as usual.
Shell timing is as always impeccable... This will be Permian 2.0. As soon as we sell Chemicals business will rebound.
I should buy some Dow and Lyb shares.
Yes. This was one of the main reasons I left the company last year. Just no long term future it appears in chemicals and another company was willing to pay me more to basically do the same role at Shell.
@OP you are absolutely correct. These losses are not sustainable in the view of management. Once the integration of P&T in the business lines are complete in July there is going to be a huge bloodletting of people that serves the company no purpose in the core business of O&G. The only businesses outside of that I see with any real future within Shell is F&L. The rest, especially chemicals, will be sold or shutdown. They’ve already stated their intentions for the future of chemicals, both in the US and Europe.