S&P Downgrades Royal Dutch Shell ADSS from BUY to HOLD

October 05 00:00 2011

New York, October 5 (RainbowNewsLine.com) – Analyst Michael Kay of S&P Equity Research has downgraded Royal Dutch Shell ADSS (RDS) from BUY to HOLD. The target price is set to $73.

Analyst Michael Kay of S&P Equity Research, in a research note published this morning,mentions that the downgrade is based on the temporary closure of the company’s largest refinery unit in Pulau Bukom in Singapore. The company closed the unit with a capacity 500,000 boed, accounting for 7%-14% of its total sales, due to the fire, the analyst says. Royal Dutch Shell has cancelled some crude deliveries while declaring Force Majeure on some of its customers primarily in Asia Pacific region. The full consequences of the shutdown will depend upon the amount of time the unit is going to be shut down. As of now it is estimated that the unit will be shut for one to three months, the analyst adds.

 

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