NEW YORK (TheStreet) -- Shares of Royal Dutch Shell (RDS.A) are slightly lower after a consortium they lead is close to selling several Nigerian oilfields for about $5 billion to domestic buyers, as foreign companies retreat from sub-Saharan Africa's oldest oil industry, the Financial Times reports.
The price tag for the four oilfields and a key pipeline co-owned by Shell, France's Total (TOT) and Eni (E) of Italy has doubled since initial estimates towards the end of last year, highlighting the financial muscle of a cluster of Nigerian oil companies that have emerged as prominent players in the country's hydrocarbon industry, the Times said.
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TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL DUTCH SHELL PLC (RDS.A) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."