Shell plc’s SHEL U.K. subsidiary, Shell U.K. Limited, recently announced that it reached a settlement with Greenpeace UK Limited over the illegal boarding of its newly built Penguins floating production, storage and offloading (FPSO) vessel in the Atlantic Ocean in early 2023. In the said incident, the protestors scaled a 72,000-metric-ton moving vessel, occupying it for 13 days. The company later filed a suit against the unlawful boarding, citing that the actions undertaken by Greenpeace were unlawful, unsafe and endangering lives aboard.
In response to the incident, Shell filed a suit to seek $900,000, which includes $500,000 incurred for the safety vessel to provide emergency response in the event of a safety incident and deter further unlawful boarding.
The High Court’s judgment declared the unlawful boarding by the protestors a dangerous act that risked lives, including those of crew members as well as the protestors themselves. The court reaffirmed that although the activists had the fundamental right to protest, these actions must not compromise safety or legality.
Per the settlement agreement, Greenpeace has agreed to pay £300,000 to the Royal National Lifeboat Institution, a charitable institute to promote maritime safety. Apart from the financial compensation, Greenpeace has also agreed to avoid approaching Shell's four sites in the North Sea oil and gas platforms for up to a decade. This payment made by Greenpeace under the settlement terms would ensure safety at sea following Greenpeace’s unlawful actions during the vessel boarding incident.
The UK North Sea has always been a battleground between climate activists and energy companies. The activists are of the view that fossil fuel projects undertaken by the companies are contrary to the country’s emissions rules, but the companies still undertake profitable ventures to tap new oil and gas discoveries, which will be consumed for many more years to come.
According to Greenpeace, Shell’s suit became a PR Milestone and sparked global attention, but the activist group will not be intimidated by such suits claiming millions from it. The group will continue campaigning until the energy industry stops drilling and starts paying for the damage that the world is facing.
London-based Shell plc is one of the primary oil supermajors —a group of the U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like ARC Resources Ltd. AETUF, Flotek Industries, Inc. FTK and Nine Energy Service, Inc. NINE. Arc Resources, Flotek Industries and Nine Energy Service each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 51.59%, which aligns favorably with the industry growth rate of 12.60%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
Houston, TX-based Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development. NINE’s expected EPS growth rate for the current quarter is 33.33%, which aligns favorably with the industry growth rate of 9.04%.
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