Selling, but leasing back for 15 years is what I've heard.
16 replies (most recent on top)
@jv yes but you get lots of cash to buy back stocks and temporary lift the price and cash in.
@j2 no one is going to lease the space. There is too much commercial real estate on the market.
@j2 do you think that the rent isn't going to be higher than all of those money pit costs? Do you think that landlords loose money and just pay themselves through depreciation and the final sale of the land? No, they make money everywhere.
It is a bad business decision
@ej anyone else still laughing at this question?
It isn’t a terrible business decision. It’s a money pit between property taxes, maintenance cost, and so much empty space. Selling and leasing back absolves of most of those costs and the remaining space can be leased externally without assuming liability for managing tenants.
Shell is growing quite well in Bangalore, especially in technology, digital, engineering and data-related roles. India is becoming an important hub for Shell, so there can be good long-term career opportunities here.
https://www.shell.in/about-us/what-we-do/capability-centres.html
@ej
Is deepwater part of LNG or trading?
@ej Just because it’s bolted down, welded in place, and chained to the floor like my office stapler doesn’t mean it’ll stop Wael from selling it.
Any chance Shell divests upstream deepwater?
@bx I did not even last 15 years, even if I wanted to.
So stupid these people only care about the short term because they will be gone in 15 years. There have to be systems to prevent these stupid cycles and someone in org to look out for the long term in Shell. Everything is so short-term in Shell. No one gets credit or blame for good long-term decisions.
@a3 correct me please but didn’t we sublet OSP? We don’t usually own office buildings, they aren’t revenue streams. Same as the old WCK. This isn’t something to get anxious about. Fire selling assets? Sure worthy of anxiety but not new. Core is refining that trading loves, shipping and trading, and Deepwater. Refining assets that don’t play to our trading network were always at risk. We gained several refineries after the Texaco/getty lawsuit that we never wanted anyway. We got rid of them. DPK is a recent exception. that was BVB showcasing the mo--n that he is. Wood river never should have been sold. That was an older example (ca. 1997) based on the Dutch mo--ns saying that the mid con region would never have access to affordable crude. Apparently they didn’t hear about a country called Canada. We will continue to divest but will keep upstream Deepwater, Norco. that’s probably it for the US outside of some auxiliary businesses like catalyst and renewable gas so long as they can support themselves and maintain 12-15% ROACE.
@a3 funny but true, hopefully ill be gone by then
In 15 years there won’t be anyone left in Houston, Shell will have sold the old assets to some local ‘better suited’ companies.
I heard they are going to start moving people back to New Orleans
Fifteen years later.. Shell leadership asks why we are paying a third party to manage our buildings? We should own the buildings. The cycles repeats.