Energy giant Shell has announced its decision to divest its home energy retail business in Europe.
According to reports, Shell is also exploring various options, including a potential stake sale to external investors, for its global renewable power operations.
Bloomberg reported that the company is working closely with advisers to study different possibilities, which may also involve separating the business into a more independent unit.
During the company’s Capital Markets Day, Tjerk Huysinga, Executive Vice President of Investor Relations at Shell, said: “We must now deliver value from this portfolio, which means making disciplined and difficult choices such as stepping back from opportunities that do not fit our strategy or do not generate enough returns.
“In line with this, we have taken decisions to exit projects in Ireland and France.”
“We will be disciplined with our investments and will limit capex to $2 billion (£1.5bn) a year in 2024 and 2025. This is a net figure so proceeds from dilutions of around $1 (£760m) to $2 billion (£1,5bn) offset the gross cash capex figure,” the company added.
A Shell spokesperson said: “We have no comment on the substance of this story. As we made clear at our Capital Markets Day event last month, Shell will selectively invest in power, focusing on markets where its trading activities and customer reach can help to deliver higher returns, while also using access to green electrons to enable growth in low carbon energy solutions.
“We also stated that dilutions from our power interests are part of our plans to deliver our strategic objectives.
“Power remains an important part of our strategy and will support Shell to get to net zero by 2050. We look to power to become a growing source of low-carbon value for Shell.”
