Shell: Berenberg stays on 'buy' after asset sale

(CercleFinance.com) - Berenberg confirms its 'buy' recommendation on Shell with price targets kept at 20.
5 euros and 1720 pence, following the energy group's announcement that it would sell its Permian basin business to ConocoPhilips for 9.5 billion dollars.

The broker says that the sale considerably raises shareholders' profits, whilst at the same time reducing carbon emissions and debt, although it adds that it leaves a smaller asset base with which to cover and grow dividends.

As a reminder, the broker points out that the cash proceeds from this transaction will be used to fund seven billion dollars of additional distributions to shareholders once it is complete, with the rest used to further strengthen the balance sheet.

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