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Shell (RDS.A) Signs Deal for Low-Carbon Mobility Solutions

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Royal Dutch Shell Plc  announced that it entered a new five-year global business cooperation agreement with Hyundai Motor Company to facilitate the delivery of zero-emissions mobility solutions for a carbon-neutral future.

Per the deal, both companies will develop and deploy zero-emission battery electric and hydrogen mobility solutions for all the customers of Hyundai located mainly in Asia. Also, they will discuss cooperation schemes for energy supply businesses, including electric vehicle and FCEV charging services.

The agreement, which runs through 2026, is the fourth extension of the partnership since its beginning in 2005. Notably, this time Shell and Hyundai will focus on renewable energy and aim to reduce carbon emissions in proactive response to market changes.

Shell and automobile manufacturer Hyundai execute joint research and development programs, particularly for the first-fill lubricants to address Hyundai’s specific engine requirements. The integrated energy giant remains the official sponsor for Hyundai Shell MOBIS World Rally Team since 2014, and has manufactured and delivered advanced lubricants, which have favored the second consecutive victory of the team.

Hyundai is expected to continue recommending Shell lubricants throughout its global aftermarket network. Importantly, the recommendation comprises a series of dedicated co-branded and affordable Shell Helix products, such as Shell Helix Ultra with PurePlus Technology. Throughout their long-term relationship, Shell provides aftermarket support for Hyundai in more than 70 markets worldwide.

On its part, the new agreement enables Hyundai to boost carbon-neutral production and continue its transformation as a Smart Mobility Solution Provider. Shell will also enhance its role in providing Hyundai with cleaner mobility solutions as part of its new objectives for electric-car charging, carbon capture and storage, and electricity sale.

Company Profile & Price Performance

Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully-integrated, as it participates in every aspect related to energy from oil production to refining and marketing.

Shares of the company have outperformed the industry in the past six months. The stock has gained 55.9% compared with the industry’s 49.2% growth.

 

 

Zacks Rank & Other Stock to Consider

The company currently carries a Zack Rank #2 (Buy).

Some other top-ranked players in the energy space are Suncor Energy Inc. (SU - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and ConocoPhillips (COP - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Suncor’s earnings for 2021 are expected to surge 138.2% year over year.

Diamondback’s earnings for 2021 are expected to increase 20.2% year over year.

ConocoPhillips’ earnings for 2021 are expected to increase 10.1% year over year.

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