LONDON, Feb 12 (Reuters) - Shell is reviewing strategic options to unlock long-term value for its Sprng renewables unit, the company said on Thursday. Shell agreed in 2022 to buy India-based
Shell reviewing strategic options for Sprng renewables unit
Shell's Strategic Review of Sprng Energy
LONDON, Feb 12 (Reuters) - Shell is reviewing strategic options for its India-based Sprng Energy renewable power unit, the company said on Thursday.
Background on Sprng Energy Acquisition
The British oil major said it was too early to comment on the outcome of the review. The review comes as CEO Wael Sawan shrinks the company's low-carbon projects to focus on liquefied natural gas trading and upstream.
Market Context and Competitor Actions
Shell agreed to buy Sprng in 2022 for $1.55 billion. The platform has operational capacity of 2,300 megawatt peak (MWp) and contracted total capacity of 5,026 MWp, its website said.
Last week, Shell missed fourth-quarter profit expectations with an 11% drop to the lowest level since early 2021 amid weaker oil prices, but kept its bumper share buyback programme.
Rival BP is also undergoing a strategy reset back to hydrocarbons and took about $4 billion in charges on its renewables and biogas assets last quarter.
(Reporting by Stephanie Kelly and Shadia Nasralla, Editing by Louise HeavensEditing by Peter Graff and Louise Heavens)
