Shell Stock Faces A Tougher Test As Erste Downgrade Lands Before Q1 Results
Shell shares slid again Wednesday after Erste Group downgraded the oil giant to “hold” from “buy.” The bank flagged concerns about the staying power of Shell’s current profits, with that call landing just a day ahead of first-quarter earnings. Shell’s New York shares were trading at $86.80 in the afternoon, off $2.91, or roughly 3.2%. BP, Exxon Mobil, and TotalEnergies were also in the red. The clock’s ticking for Shell. With its May 7 update due, the company faces a sharp question: can it squeeze enough out of turbulent oil trading to make up for softer gas production, ongoing issues in Qatar, and a big swing in working capital—money locked away in inventories and outstanding payments? Shell has already warned