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Summary
- Royal Dutch Shell Plc to divest its Puget Sound Refinery in Washington to HollyFrontier Corp.
- The agreement has been finalised at $350 million in cash.
- The company would also additionally pay $150 million to $180 million for the inventories.
Oil and gas major Royal Dutch Shell Plc (LON: RDSA) has announced it would sell its Puget Sound Refinery in Washington to HollyFrontier Corporation. The agreement has been finalised by a subsidiary of Shell, Equilon Enterprises LLC for a consideration of $350 million in cash along with the value of hydrocarbon inventory.
Royal Dutch Shell Plc had last year announced its plans to bring down its refinery portfolio from 14 to 6 sites by 2025. The company aims to diversify to low-carbon fuels. It is focussing to bet on the future potential of petrochemicals.
Also read: 3 Oil & Gas Stocks in Focus After Oil Prices Rebound Despite Suez Canal Blockage
HollyFrontier would additionally be paying between $150 million to $180 million for the inventories in its sites in Alabama and Washington, as per a statement by HollyFrontier. The agreement would include logistical assets and on-site co-generation. The transaction is expected to be completed in the fourth quarter of this year.
HollyFrontier said the takeover might be funded through cash in hand and a one-year suspension of its regular quarterly dividend payout.
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Here’s a look at three oil and gas stocks with the highest dividend yield:
Diversified Gas & Oil Plc (LON: DGOC)
The FTSE 250 company has a dividend yield of 9.36 per cent. For the year ended 31 December 2020, the company’s hedged adjusted EBITDA was up over 10 per cent at $301 million compared to $273 million a year ago. The company reported a revenue of $409 million, a fall of 12 per cent from $462 million a year ago.
Also read: How will energy green revolution headwinds sway the oil exporters?
The stock was trading at GBX 119.20, down by 0.33 per cent on 5 May at 10:56 GMT+1. Meanwhile, FTSE 250 was up 0.27 per cent at 22,389.49.
(Source: EODHD/Others, Thomson Reuters)
Gulf Keystone Petroleum Plc (LON:GKP)
The Iraqi gas production and exploration company has a dividend yield of 9.45 per cent. The company reported a loss after tax of $47.3 million for the full year ended 31 December 2020 compared to $43.5 million profit a year ago. The company’s revenue fell to $108.4 million compared to $206.7 million a year ago, which was mainly driven by fall in the price of Brent oil. Its cash balance was at $147.8 million at the end of the year, falling from $190.8 million a year ago.
The stock of the company was trading at GBX 179.60, up by 1.89 per cent on 5 May at 11:16 GMT+1.
(Source: EODHD/Others, Thomson Reuters)
BP Plc (LON: BP)
The FTSE 100 company has a dividend yield of 6.38 per cent. For the first quarter of 2021, the company’s profit rose to $4,667 million from $1,358 million in the previous quarter. The company also announced a share buyback worth $500 million in the second quarter.
(Source: EODHD/Others, Thomson Reuters)
The company’s CEO Bernard Looney said the company made good progress in its electrification agenda and is looking forward to further growth in the Gulf of Mexico.
The shares of the company were trading at GBX 310.15, up by 1.56 per cent on 5 May at 11:26 GMT+1. The FTSE 100 was up 1.16 per cent at 7,003.22.
