Shell Reshapes Operations in Indonesia With Fuel Business Divestment
Shell plc's SHEL Indonesian affiliate has taken a bold step in reshaping its business strategy by divesting fuel retail operations to a joint venture between Citadel Pacific Limited and Sefas Group. This transaction includes the transfer of around 200 gas stations and a fuel storage terminal located in Gresik, with completion expected by next year.
Despite this move, Shell remains firmly rooted in Indonesia. The company emphasized that it will continue to operate under brand licensing agreements, maintaining visibility and legacy in the region.
The acquiring joint venture brings together the strengths of two long-standing Shell partners. Citadel Pacific, a private holding company based in the Philippines, has its presence across various industries like aviation-related services, telecommunication, gas distribution and fuel marketing. The company licenses the Shell brand across multiple territories, including Guam, Hong Kong and Macau. Sefas Group, on the other hand, is Indonesia's largest Shell lubricants distributor.
Their collaboration signals continuity for customers and partners, backed by a solid history of representing the Shell brand across various markets.
While Shell is stepping away from fuel retailing, it is optimizing the portfolio by doubling down on the lubricants business in Indonesia, a market described as key for growth. Shell operates a major lubricant blending plant in the country with a capacity of up to 300 million litres annually and a new grease manufacturing plant is currently under construction. With this repositioning, Shell reinforces its strengths in high-growth, high-margin segments that can alleviate its profitability in the future.
London-based Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at some better-ranked stocks like Flotek Industries, Inc. FTK, Global Partners LP GLP and RPC, Inc. RES. While Flotek Industries and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK's 2025 earnings indicates 55.88% year-over-year growth.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. The company owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners' 2025 earnings indicates 17.84% year-over-year growth.
Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES' next quarter earnings indicates 33.33% growth.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global Partners LP (GLP) : Free Stock Analysis Report
RPC, Inc. (RES) : Free Stock Analysis Report
Flotek Industries, Inc. (FTK) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
11 minutes ago
- New York Post
BlackRock removed from Texas investment blacklist after rolling back woke policies: ‘We're seeing a course correction'
BlackRock has been removed from Texas's investment blacklist, a major reversal that follows the asset management giant's decision to scale back some of its controversial climate commitments. The move, announced Tuesday by Texas Comptroller Glenn Hegar, ends a three-year ban that had prevented state pension and investment funds from doing business with the world's largest asset manager over its environmental, social and governance (ESG) policies. 3 BlackRock CEO Larry Fink is seen above on the floor of the New York Stock Exchange in April 2025. REUTERS 'This marks a meaningful shift,' Hegar said. 'Texas has played a leadership role in standing up to financial institutions that try to push political agendas under the guise of environmental concern. We're seeing a course correction.' Texas funds hold an estimated $50 billion in assets. A BlackRock spokesperson told The Post: 'We appreciate the Comptroller's resolution of this matter.' 'More than $4 billion in Texas funds are invested with BlackRock,' the rep said. The Larry Fink-led company had $11.55 trillion in assets under management at the end of the fourth quarter in 2024. We are 'proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state,' the spokesperson said 'These investments support the continued growth of the Texas economy.' BlackRock had drawn fire from Republican-led states like Texas for supporting climate-focused investment strategies and for its involvement in initiatives aimed at reducing global emissions. 3 Texas has taken action against companies that have adopted ESG (environmental, social and governance) investment strategies. Texas Gov. Greg Abbott is pictured. Jay Janner/American-Statesman / USA TODAY NETWORK via Imagn Images But over the past year, the New York City-based firm has distanced itself from some of those efforts. In January, it exited the Climate Action 100+ investor group. It also withdrew from the Net Zero Asset Managers initiative, a UN-backed coalition focused on reducing portfolio emissions. The rollback appears to have helped smooth tensions with officials in Texas, where fossil fuels remain a key pillar of the economy and political identity. The Texas comptroller's office had added BlackRock and other financial firms to its restricted list in 2022 after lawmakers passed legislation targeting perceived boycotts of the oil and gas industry. That law required the comptroller to identify firms that 'discriminate' against fossil fuel companies and to direct state funds to divest from them. Since then, the blacklist has become a flashpoint in the national debate over ESG investing. 3 BlackRock is the world's largest asset manager, overseeing $11.6 trillion in investments across global markets for governments, institutions and individuals. REUTERS While many conservatives have argued that large asset managers wield too much influence in promoting progressive agendas, others — including some within the financial industry — warned that the restrictions risked limiting returns and politicizing fiduciary decision-making. BlackRock has repeatedly pushed back on claims that it engages in coordinated efforts to undermine the fossil fuel sector. 'We never set out to penalize any company,' Hegar said Tuesday, 'but we made clear there would be consequences for putting politics ahead of financial performance.' Despite the thaw in relations, BlackRock remains the subject of a separate legal fight with a coalition of Republican attorneys general, including Texas Attorney General Ken Paxton, who allege the firm has violated antitrust laws through its ESG commitments. BlackRock has denied the charges, calling them baseless.
New York Post
16 minutes ago
- New York Post
Dave's Hot Chicken sold to Subway owner in $1 billion deal
Dave's Hot Chicken said Monday it has been acquired by the private equity firm Roark Capital in a deal valued at $1 billion. Dave's Hot Chicken got its start in 2017 as a popup in a Los Angeles parking lot. It has grown exponentially since then and expects to end this year with 400 restaurants worldwide. The brand specializes in Nashville-style hot chicken. 3 Dave's Hot Chicken was bought by private equity firm Roark Capital for $1 billion. AP 3 Dave's Hot Chicken was started in 2017 as a popup in a Los Angeles parking lot. AP Investors in Dave's Hot Chicken have included the rapper Drake, who gives away hot chicken sliders every year on Oct. 24, his birthday. Atlanta-based Roark specializes in franchised businesses. It bought the Subway sandwich chain in 2023 and backs two holding companies that own multiple restaurant chains: Inspire Brands, the parent of Arby's, Dunkin', Jimmy John's, Sonic and Buffalo Wild Wings; and GoTo Foods, which owns Auntie Anne's, Carvel, Cinnabon and Jamba. Dave's Hot Chicken said its leadership team — including CEO Bill Phelps and the four childhood friends who founded the company — will remain and continue to lead menu innovation, food quality, operations and marketing. 3 Atlanta-based Roark bought the Subway sandwich chain in 2023. Christopher Sadowski 'Our entire organization is excited about the fit between Dave's Hot Chicken and Roark, and we're looking forward to continuing to blow our guests' minds and unlocking growth and value for our franchise partners,' Phelps said in a statement.
Axios
23 minutes ago
- Axios
Ex-SpaceX engineer raises $300 million for satellite "tugging"
Impulse Space, a Cakifornia-based maker of spacecraft for "tugging" satellites across orbits, has raised $300 million in Series C funding led by Linse Capital. Why it matters: This is the picks and shovels of defense-tech, akin to what oilfield service companies were to the fracking boom. Zoom in: Impulse is led by Tom Mueller, the first SpaceX employee.
