RBC Capital Markets claims to prefer Shell as a player in the natural gas market. The business bank argues that the gas market is structurally improving and that this improvement can continue in 2021, also through a winter that may become colder than usual. Shell would be well positioned for this. Shell’s advice is on outperform.
The bank believes that Shell’s cash flow in the third quarter may be higher than estimated, as well as Total and Equinor’s. For Repsol, ExxonMobil and Chevron, a disappointing cash flow is expected. RBC also says that pressure on the energy sector will continue for the time being and that the pace of transition to lower emissions in Europe varies considerably between companies. The probability of buying shares this year is low as surplus money is used to reduce debt, according to the bank.
Shell closed on Friday at 10.46 euros.