Shell fell about 0.6% to $91.69 on Wednesday as Brent crude retreated to roughly $86.38 a barrel, with oil declining for three straight sessions on hopes that Iran-Oman negotiations could restore safer shipping through the Strait of Hormuz, stripping geopolitical fear from prices. The company's second-quarter results showed $9.8 billion in adjusted earnings, $21.4 billion in operating cash flow, and $17.5 billion in free cash flow, while net debt fell to $41.8 billion. Shell converted about 82 cents of every operating-cash-flow dollar into free cash flow, a cash machine that can defend dividends and buybacks if oil keeps sliding. However, the stock trades 10.9% above its $82.68 GF Value estimate, suggesting some resilience is already priced in, and investors may question whether to keep paying a premium as the war-driven oil boost fades.
Shell plcHopes for Iran-Oman talks reduce oil's war premium, pressuring Shell's stock.
