Shell plc (SHEL) confirmed that it has temporarily shut down a unit at Pernis in Rotterdam, due to a leakage, per media reports.
With a processing capacity of more than 400,000 barrels of crude oil per day, Pernis is the biggest oil refinery in Europe. According to a fire safety alert from the region's Rjinmond Veilig service, the compressor of the fluid catalytic cracker unit 2 suffered a malfunction on Oct 12, owing to the loss of power supply. Per a notice posted on the website of the environmental authority DCMR, the incident led to 200 complaints from the public regarding Shell's Pernis facility near Rotterdam.
The refinery underwent significant maintenance that lasted approximately two months before the recent shutdown. Early in March, Shell started extensive maintenance work on several systems at the refinery. The same was expected to be completed by the end of May.
According to a statement from Shell, although the government was informed about the incident, there’s no clear information regarding how long the outage would last, what processing capacity was impacted or what it would mean for the fuel supply system.
Zacks Rank & Key Picks
Currently, Shell carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Sunoco LP SUN, Murphy USA Inc. MUSA and RGC Resources Inc. RGCO. While both Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy), RGC Resources carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flow. For this year, SUN has witnessed an upward earnings estimate revision in the past 30 days.
Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries —Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas. For this year, the company has witnessed an upward earnings estimate revision in the past 30 days.
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