Shell Pumps The Brakes in Malaysia, Gas Station Network Reportedly Up for Sale For $1B

Zinger Key Points
  • Shell reportedly in talks with Saudi Aramco to sell its Malaysian gas station business.
  • The divestiture aligns with Shell's strategy to focus on profitable ventures, including plans to divest 500 gas stations annually.

Shell plc SHEL is reportedly in talks with Saudi Arabia’s state-owned oil & gas giant, Saudi Aramco, to sell its gas station business in Malaysia.

The deal for the second-largest gas station network in the country could be worth up to $1 billion, reported Reuters.

Notably, Shell wholly owns around 950 fuel stations across the Southeast Asian country, with only Malaysia’s state-owned Petronas operating a bigger network.

As per the report, the divestiture talks began in late 2023 and the deal may be finalised in the coming months. 

As per the report, Shell earlier said that it plans to divest 500 gas stations this year and next and this sale is a part of Shell’s CEO Wael Sawan’s efforts to focus on the profitable businesses. 

Also ReadShell Exits Chinese Power Market, Eyes Gas Growth: Report

Also, Shell’s effort to sell its Malaysia fuel stations is at par with its move to sell its refinery on Bukom Island in Singapore, which supplies the network, said Reuters.

Last week, Shell disclosed first-quarter FY24 results, with revenue of $72.48 billion missing the consensus of $82.04 billion

Shell stock has gained ~19% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF (HJEN) and VanEck Natural Resources ETF (HAP).

Price Action: SHEL shares are up 0.80% Y/Y at $72.95 premarket at the last check Monday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsAsset SalesMediaBriefsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!