Shell Stock Ranks 6th in the Top 10 Integrated Energy Stocks in 3Q17


Nov. 20 2020, Updated 4:28 p.m. ET

Shell stock’s performance in 3Q17

Royal Dutch Shell (RDS.A) stock stands sixth in the list of top ten integrated energy stocks. Shell is the last stock in the middle tier of ten stocks being ranked in this series.

Shell stock has risen 8.0% since July 3, 2017, outperforming the broad market indicator, the SPDR Dow Jones Industrial Average ETF Trust (DIA). DIA has risen 4.7% during the same period.

Leading integrated energy firms BP (BP) and Chevron (CVX) returned 5.8% and 10.4%, respectively, in 3Q17. However, ExxonMobil (XOM) has fallen 0.8% in the current quarter.

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Shell’s moving averages

In 3Q17, Shell’s 50-day moving average (or 50-DMA) stood above its 200-day moving average (or 200-DMA). Plus, the steep rise in Shell stock has led to a rise in its 50-DMA.

Shell’s 50-DMA, which stood 2.3% above its 200-DMA on July 3, now stands 2.7% above its 200-DMA. This suggests that Shell technically stands in a bullish territory.

Why the rise in Shell stock?

Shell stock’s correlation coefficient versus WTI for the past one-year period stood at 0.57, implying a positive correlation. WTI prices rose 8.4% in 3Q17, which could have boosted Shell stock.

Shell posted its 2Q17 results during the current quarter, and its earnings surpassed estimates. For more on this topic, please refer to Shell Kick-Starts 2Q17 Earnings Season with a Bang.

In 3Q17, Shell experienced a series of events that affected its stock. At the beginning of 3Q17, Shell announced the purchase of Turritella FPSO for the Stones project in the Gulf of Mexico. Shell also announced the sale of its stake in Shell E&P Ireland Limited, marking its exit from its Upstream business in Ireland. This move is in line with its divestment strategy to exit its non-strategic positions.

During 3Q17, Shell also started production at the Gbaran-Ubie Phase 2 project in Nigeria. For more on this topic, please read Why Shell’s Gbaran-Ubie Project Is Vital to Upstream Portfolio

In the next part, we’ll look at the stock returns of ENI (E) in 3Q17.


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