Shell Adds Moroccan SAF Offtake and Greek LNG Supply as Two Banks Lift Targets
Published on 11/07/2026 at 16:32 | Editorial boerse-global.de
Shell has secured a pair of long-term fuel agreements on two continents while absorbing a run of fresh analyst target hikes — a combination that leaves the energy major's strategic story and its recent share-price weakness pulling in opposite directions.
The more recent of the two supply deals, reported by Energy Intelligence, is a long-term offtake agreement signed Thursday between Shell Trading and Green Sky Manara. It covers sustainable aviation fuel and other low-carbon fuels from a planned facility at Port Nador in Morocco. Unlike a conventional sales contract, this arrangement gives Shell a buyer's position in future low-carbon volumes rather than a seller's.
On the LNG side, Shell Global LNG Limited agreed on Monday to deliver six cargoes a year to METLEN under a five-year contract that begins in 2027. The annual volume works out to roughly 0.6 billion cubic metres, drawn mainly from Shell's US LNG portfolio, with Greece and other European markets lined up as destinations. That deal fixes both the intended source of the molecules and where they may end up.
Two Banks, Two Higher Targets
Morgan Stanley raised its price target on Shell to GBP 39.61, according to media reports. The move came as the stock was down 8.5% over seven trading days, so the upgraded target now sits against a softer share price. Earlier in the week, TD Cowen analyst Jason Gabelman had reaffirmed his buy recommendation and lifted his target to $120 from $115 — the second target increase in quick succession, and the only one of the two explicitly tied to a positive investment call.
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RBC Capital Markets had already moved on 30 October, raising its target to 4,100p from 4,000p while keeping a "Sector Perform" rating. The bank pointed to updated commodity price assumptions and higher earnings forecasts as the rationale.
The recent share-price slide, by contrast, appears to have little to do with Shell itself. Axios cited falling oil prices as the driver on Wednesday, with hopes of progress toward ending the Iran conflict tempering concerns about crude supply — a macro move rather than a company-specific deterioration.
Buyback and Distribution Schedule
Shell also disclosed purchases of its own shares for cancellation, executed on Thursday across several venues including the LSE and XAMS. The trades fall under the $5.0 billion buyback programme announced just over a week ago, which is scheduled for completion before the publication of fourth-quarter 2026 results.
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The company's third-quarter 2026 figures, released on 29 October, showed adjusted earnings of $10.814 billion and operating cash flow of $21.043 billion. Shell declared a quarterly dividend of $0.3906 per share. The fourth-quarter 2026 dividend is due to be announced on 4 February 2027, with payment scheduled for 30 March 2027.
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