Energy Business Recap: Shell’s OVERproduction, Icahn KEEPS CVR
Here are Thursday’s top stories:
Norwegian firm Statoil ASA (NYSE:STO) intends to invest $18 billion in capital expenditures in this year due to higher activity, as it reported a somewhat lower second quarter net profit. The company says that even though a large economic crisis is not forecast, a lengthy drop in oil and gas prices can be managed: “The first line of defense is always to have a lot of money available, and we have.”
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Royal Dutch Shell (NYSE:RDS.A) posted disappointing second quarter figures, while higher oil and gas production failed to offset weaker energy prices and stalled consumer demand. However, the company says it will stick to its plan to spend $32 billion in 2012 expanding its production portfolio. Shell’s Chief Executive Peter Voser remarks that its long-term investment strategy would help it through harder times.
Carl Icahn wins a pyrrhic victory: The sale process of CVR Energy, Inc. (NYSE:CVI) fails to bring any credible offers after 60 days, so he gets to keep and run the firm. Icahn explained that he will not continue to push for a sale because “continual shopping of CVR could be disruptive to its operations.”
Thailand’s PTT reports that it has received valid acceptances from 72 percent of Cove Energy (CNVGF.PK) shareholders, and now extends its acquisition offer to July 31st, says that “If we still can’t get 90 percent stake, then we will consider what to do next,” Royal Dutch Shell is not participating in the auction, and declares that the offer for Cove has lapsed, since it hasn’t received the required number of acceptances.
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