Natural gas is in short supply at the moment and the Shell-Aktien (WKN: A3C99G) might be a good alternative for this investment thesis overall. Fossil fuels is a market that now has a solid perspective, at least in the medium term. Market conditions are simply favourable, biased towards solid returns in times of inflation.
The special thing regarding the Shell share is that there is not only the well-known oil business. No, with the takeover of the BG Group a few years ago, the management set an important course to distinguish itself here as well.
How does this make itself felt and how important is natural gas? Today we want to find out a little more regarding that.
Shell shares and natural gas: A billion dollar market!
Ultimately, looking at the Shell share, we see that many areas are quickly becoming a billion-dollar market. In this respect, this subheading is not as big as it appears. Nevertheless, the current context in the context of the quarterly reporting season shows that the segment is very, very important operationally.
In the natural gas segment (Integrated Gas), the British group achieved adjusted earnings of over 3.7 billion US dollars. With a view to total earnings of USD 11.4 billion, this corresponds to an earnings share of around 32.5%. Every third dollar earned comes from this segment. Only the upstream area was able to record a higher result with 4.9 billion US dollars.
But Integrated Gas is also extremely important for Shell stock in terms of operating cash flow. Here the value was even 8.17 billion US dollars. Yes, that was even slightly larger than upstream, which had $8.11 billion in operating cash flow.
In the case of Shell shares, the natural gas area is therefore large. We might even say: It is one of two defining areas that have now made such a significant contribution to the operational success.
A value bet
At the current price level of around 25 euros, the Shell share appears as a value bet. Last but not least, this is also due to the fact that there is this high cash flow and the solid results. With a price-to-earnings ratio of 12 or even lower and a dividend yield of 4%, there might be plenty of value. As I said: in the oil and natural gas market, which has always been cyclical in recent years. You should decide for yourself whether this is worth an investment for you. However, a shortage of natural gas now appears to be a working investment thesis.
The item Natural Gas Shortage: Is Shell Stock a Top Alternative Now? appeared first on The Motley Fool Deutschland.
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Vincent owns shares of Shell. The Motley Fool does not own any of the stocks mentioned.
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