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SHEL Shell Plc

2,780.50
8.50 (0.31%)
28 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Shell Plc LSE:SHEL London Ordinary Share GB00BP6MXD84 ORD EUR0.07
  Price Change % Change Share Price Shares Traded Last Trade
  8.50 0.31% 2,780.50 7,522,406 16:35:17
Bid Price Offer Price High Price Low Price Open Price
2,776.00 2,777.00 2,792.00 2,762.25 2,782.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs USD 316.62B USD 19.36B USD 2.9802 9.32 180.36B
Last Trade Time Trade Type Trade Size Trade Price Currency
16:39:55 O 8 2,778.50 GBX

Shell (SHEL) Latest News (4)

Shell (SHEL) Discussions and Chat

Shell Forums and Chat

Date Time Title Posts
29/5/202400:27Shell4,825
22/8/202313:11The man in the helicoptor4
27/10/202207:29Shell-
07/2/202217:53You can be sure of Shell-
22/1/202220:14Stand up the true SHELL, Royal Dutch and or Transport3,063

Add a New Thread

Shell (SHEL) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2024-05-28 16:27:342,773.50127.74O
2024-05-28 16:09:262,774.00383.22O
2024-05-28 16:09:192,774.004110.96O
2024-05-28 16:08:112,774.50127.75O
2024-05-28 16:06:232,772.506166.35O

Shell (SHEL) Top Chat Posts

Top Posts
Posted at 28/5/2024 09:20 by Shell Daily Update
Shell Plc is listed in the Crude Petroleum & Natural Gs sector of the London Stock Exchange with ticker SHEL. The last closing price for Shell was 2,772p.
Shell currently has 6,495,789,107 shares in issue. The market capitalisation of Shell is £180,355,584,556.
Shell has a price to earnings ratio (PE ratio) of 9.32.
This morning SHEL shares opened at 2,782.50p
Posted at 17/4/2024 08:33 by loganair
Typical of oil companies to buy back their shares when their share price is near all time highs.

The problem is when the oil price is high, oil companies are making huge profits and their share price in turn is high. At these times I would like to see Shell hold on to their profits until the oil price falls back leading to a drop in their share price then use the profits they've held back to buy back share.

How about Shell buying back their shares during covid, buying back as many as they could when the share price was under £10, could have bought back 3 shares for the same price as they are now buying back just 1.

It would be in the share holders interests for Shell to stop buying back shares when over a certain price, for example when the share price is above £20 Shell stops and when falls below restarts it share buy back programme.

More often then not, share buy backs destroy value in a company.
Posted at 07/4/2024 13:54 by drectly
It would not have much immediate impact on the FTSE due to the way that is calculated, but it would probably result in a significant increase in BP and SHEL share prices due to the way they would be valued as a company listed in the States. A declared focus on focil fues would further support the share price and renewed investment in fosil fuel projects.
Posted at 15/3/2024 22:52 by jrphoenixw2
Don’t sweat windfall taxes – energy stocks will soon soar
All signs point to oil prices rising – and that will pump up share values
Ken Fisher
15 March 2024

Ken Fisher founded Fisher Investments and built a fortune estimated at $6.3bn. He writes a monthly column for Telegraph Money

Don’t let the FTSE 100’s flat start to the year blind you. This beautiful, global bull market is strong, an early advance on the good-to-great 2024 I foresee. But then, there is energy.

The sector’s lack of energy partly explains UK stocks’ tepid start, while the bears claim Britain’s extended “windfall tax” on gas and oil portends worse ahead. Wrong! The energy sector should shift from laggard to leader later this year – shocking almost everyone. Here’s why.

After energy outperformed in 2022, riding the crest of spiked oil prices as Putin invaded Ukraine, most envisaged ongoing global supply shortages, stoked by OPEC+ supply constraints, falling UK production and a reaccelerating, post-Covid China. These, supposedly, would send oil prices spiking again – powering up energy companies.

So, few people expected energy stocks’ weakness in 2023. Globally, they fell 3.3pc while world stocks soared 16.8pc. Yes, UK Energy’s 10.8pc rise beat the overall 7.7pc increase made by British shares, but that was globally an outlier, partly due to liquefied natural gas (LNG) arbitrage profits. Globally, energy investors got trounced in 2023.

By early 2023, oil prices had quietly fallen fully a third from March 2022’s high. Global production obliterated shortage fears and seemed set to keep expanding in Norway, Guyana and North America.

President Biden’s temporary ban on new federal land leases didn’t bite – US output actually topped record highs. Hence, high and rising production globally constrained oil prices to between $70 and $95 per barrel, stymieing global energy firms, whose profits chiefly rise and fall with crude prices.

Now everyone, again wrongly, extrapolates this lag throughout 2024. Fund flows, money manager surveys and valuations all show that investors have slashed exposure to the energy sector. This sour sentiment shift goes against the fundamentals. Oil prices should rise later this year, refuelling energy firm profits – and pumping share prices.

Why? It isn’t OPEC+ production cuts.

Energy stocks and oil prices baked those in long ago. They are mere symbolism now – not real-world limits. Ditto for Mr Biden’s pausing of new LNG export terminal permits, which won’t stop already permitted and under-construction terminals from easily supplying the planet. North American LNG export capacity should double later this decade.

Nor is it the gradual decline in UK and North Sea output, this is old, widely known news.

No, this is about simple incentives and normal market behaviour.

When energy companies saw higher prices, they boosted production to capitalise. Now US producers are completing wells far faster than drilling new ones, running down America’s “fracklog” of drilled-but-uncompleted wells.

Down 17.9pc year on year, the dwindling fracklog means less inventory can come online quickly. The low-hanging fruit are picked.

But producers aren’t replacing them. Dissuaded by mostly low-end prices and higher borrowing costs, oil producers got lean. Now, after years of consolidation, global mega-drillers dominate the market. With their more judicious production targets reigning, US rig counts fell from 621 at the end of 2022 to the current 506. US drilled wells fell, down 18.6pc year on year through January.

Production typically lags drilled wells by about six months, so soon overall production will slow significantly.

Meanwhile, many people vastly underestimate demand, while at the same time overemphasising areas of minor economic weakness like Germany and the UK. Yet better-than-expected growth in Britain and Europe, solid growth in America and stable demand in China will result in stronger-than-forecast oil demand.

For that reason, oil prices will climb.

Not sky-high, but challenging the upper end of 2023’s range – boosting energy sector earnings and the FTSE. It is the oil price, not production volume, that drives profits and oil stocks and determines when and whether companies will recoup high drilling and exploration costs. Higher oil prices, married with cost-consciousness, should create an earnings bonanza.

This should help big global oil companies, Britain’s energy stocks and the FTSE, as they benefit from strong balance sheets, low-cost production and integrated business models. They are best positioned to capitalise when oil prices rise but don’t skyrocket.

Don’t sweat Jeremy Hunt’s new Budget, which extends oil and gas “windfall” taxes. These taxes won’t tank Britain’s energy stocks.

These taxes impact domestic production and revenue only. Given just 13.8pc of UK energy company revenue is actually from Britain, windfall tax worries are mostly hot air.

You may ask: “But won’t pricey oil mean high petrol prices – and reignite inflation?” Perhaps incrementally. But they are just one small factor among many, likely offset by the fall in the energy price cap.

So, enjoy this global bull market. And watch UK stocks thrive later in 2024, as they “energise”.
Posted at 01/2/2024 08:07 by xxxxxy
Shell profits dropped by nearly a third as the energy giant adjusted to lower oil and gas prices.Shell revealed adjusted earnings of $28.3bn (£22.3bn) for 2023, down 29pc from the record $39.9bn (£32.2bn) recorded in the wake of the energy shock triggered by Russia's invasion of Ukraine.It comes as Brent crude oil has fallen by 37pc since hitting $127 a barrel in March last year following Vladimir Putin's decision to invade Ukraine. Wholesale gas prices have plummeted 90pc since the shock to energy markets.However, Shell also revealed that for the fourth quarter it increased adjusted profits by 17pc to $6.3bn (£5bn) as Greenpeach activists held a "profit party" outside its headquarters in London.The energy giant also announced a new $3.5bn share buyback for the upcoming quarter, matching the level of the previous three months.Chief executive Wael Sawan said: "Shell delivered another quarter of strong performance, concluding a year in which we made good progress across the targets outlined at our capital markets day."As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions."In 2023, Shell returned $23bn to shareholders. In line with our progressive dividend policy, Shell is now increasing its dividend by 4pc. We are also commencing a $3.5bn buyback programme for the next three months.... Daily Telegraph
Posted at 09/1/2024 11:12 by xxxxxy
Shell plc's SHEL, subsidiary, Shell Petroleum Development Co. of Nigeria Ltd. ("SPDC"), achieved a significant legal victory as Nigeria's Supreme Court upheld its appeal in a pollution case. This decision, issued in 2022, has far-reaching implications, especially since it's believed to pave the way for the sale of assets (worth billions of dollars) in the country.Understanding the Legal LandscapeSPDC, holding a 30% stake in a joint venture in Nigeria, faced a major hurdle with a court order preventing the divestment of assets until the pollution case's resolution. This obstacle not only halted Shell's parent company from disposing of onshore oil operations but also underscored the complexities of operating in a region marred by legal challenges.The VerdictWhile the details of the court's judgment are awaited, insiders revealed the initial verbal announcement made on Friday. This information, provided by individuals preferring anonymity, hinted at the positive turn of events for SHEL. This legal victory is not just an achievement for the company but also a strategic move that potentially reshapes its future in Nigeria.SPDC's Response and Ongoing EvaluationIn response to inquiries, a spokesperson for SPDC commented, "We note the Supreme Court's judgment on SPDC's appeal," emphasizing the ongoing evaluation of the decision's implications. This cautious response showcases the company's awareness of the significance of the verdict and its potential impact on its future operations.A Long-Standing Presence in NigeriaShell has been a key player in Nigeria's oil extraction sector for more than 50 years. The recent legal hurdle, which emerged approximately three years ago, prompted the then-CEO Ben van Beurden to signal the company's intent to exit onshore oil positions due to the ongoing issues of sabotage and theft. While the court's favorable decision provides SPDC with some relief, the journey is far from over.Legal Challenges on Multiple FrontsDespite this legal victory, Shell still faces challenges in various courts within Nigeria and the United Kingdom. A separate legal battle, involving approximately 1,200 plaintiffs in Nigeria's southwestern city of Akure, revolves around claims of being affected by an oil spill in 2011. Simultaneously, in the U.K., a court ruling permits a group of Nigerian fishermen to proceed with their claims against Shell in another longstanding legal case.Implications for the Oil and Gas IndustryThis legal saga highlights the intricacies and challenges that multinational corporations face in regions with complex legal landscapes. The outcome of these cases could set precedents for how other companies navigate legal hurdles in the pursuit of their business goals.ConclusionAs Shell emerges victorious in this significant legal battle, the broader implications for the oil and gas industry remain to be seen. The Shell subsidiary's ability to navigate these legal challenges will undoubtedly shape its future strategies in Nigeria and abroad. The Supreme Court's decision is just a chapter in Shell's ongoing narrative, and the industry watches closely as the story unfolds.Zacks Rank and Key PicksCurrently, SHEL carries a Zacks Rank #3 (Hold).... Yahoo Finance
Posted at 13/12/2023 20:39 by pj84
"Shell

It seems that the main reason to buy Shell (GB:SHEL) remains its cheap valuation, especially compared with its US peers.

Invesco Comstock managers Kevin Holt, James Warwick and Devin Armstong are the latest top-performing investors to have seized upon the shares’ low rating, buying into the oil giant in August.

‘Shell has underperformed recently, which allowed us to initiate a position in this top-tier oil and gas firm,’ they said in their latest update to investors.

They are three of 55 Elite Investors backing in the shares, resulting in Shell’s status as the top London-listed stock in the Citywire Elite Companies rankings.

Jon Bosse and Jujhar Sohi, who own Shell in their Nuveen Large Cap Value and Multi Cap Value funds, said the shares were ‘exceptionally undervalued’, adding that chief executive Wael Sawan was ‘driving positive change and a commitment to shareholder returns’ in an update to their investors.

These shareholder returns are in the form of growing dividend and share buybacks, with Shell’s investment strictly controlled to generate plenty of cash flow.

Oil and gas and production and trading profits are under pressure from an oil price which has been drifting lower since the summer. However, over the medium term, Shell should benefit from being one of the leading integrated liquified natural gas (LNG) players as gas remains a key transition fuel for countries aiming to reduce their carbon dioxide emissions.

With Shell shares trading on just 7.5 times forecast earnings for the next 12 months, it’s not hard to to see why management is growing buybacks.

Shell’s top Elite Investors
Elite Investor Fund Size in fund Rank in fund
Steven Magill UBS UK Equity Income Fund 8.3% 2/36
Martin Walker Invesco UK Equity 6.7% 2/36
Oliver Kelton WS Ardtur Continental European Fund 6.5% 3/24
Sources: Citywire / Morningstar, latest holdings data."
Posted at 08/6/2023 14:17 by jrphoenixw2
Questor column@Telegraph today:
'Commodity stocks such as this oil giant could be a useful hedge against inflation
Questor share tip: it is rare for oil demand to drop, even during recessions, and the company's shares look cheap.

This column makes no apology for returning to the subject of Shell so quickly after its last look a month ago. That came after May’s bumper first-quarter profits statement and the occasion this time is last weekend’s Opec+ meeting in Vienna.

Saudi Arabia’s attempts to bend the oil price to its iron may not be proving entirely successful, but there are still good grounds for thinking the oil price is well underpinned in the $70 to $80 a barrel range, enough for Shell to keep churning out dividends and share buybacks to income-seeking investors (even if climate campaigners and portfolio builders who run strict environmental, social and governance screens may despair).



The influence of Opec+ is not as great as investors might believe, given that the members of the oil producers’ cartel and its allies, such as Russia, control less than half of global oil production between them.

This may explain why oil traders are hardly running for cover even as Riyadh sanctions a cut in production of one million barrels of oil a day, or 1pc of global output, from July 1 and gets Opec+ to extend the 1.2m barrel a day cut announced in April into 2024.

Reports of dissatisfaction among other Opec members who are itching to increase output, notably Nigeria and Angola, may also be dampening the impact of the Saudi Arabian initiative.

An even bigger issue facing the oil price may be ongoing concerns over the possibility of a global recession, or at least a slowdown.

In this context it is intriguing to note that equity markets seem content to price in a so-called “soft landing” or even no recession at all, so either share buyers or oil traders are going to be wrong at some stage.

And if it is oil traders who are wrong, then heaven help them for two reasons.

First, oil demand could come in higher than expected. Second, traders have reportedly been building up short positions against crude, so if the price starts to go against them, they may need to buy oil to close out and that could give the commodity’s price a lift.

Once sentiment is so one-sided, it does not take much to get the price going in the other direction and while it is very hard for investors to gauge – other than by wading through the data provided by America’s Commodity Futures Trading Commission (CFTC) commitment of traders’ reports – the impact of traders’ positioning (and who is net long and net short) should never be underestimated.

The fundamentals for oil may not be as bad as the market seems to think.

It is rare for oil demand to drop, even during recessions, and whether we like it or not, hydrocarbons are likely to be a major source of energy for some time to come, as we seek to manage the transition towards a more renewable future and net zero by 2050.

It may therefore be unwise to underestimate demand, especially as the US has run down its strategic petroleum reserve to just 355m barrels, the lowest mark since 1983 and way below its 714m-barrel capacity.

----------------------------------------
Shell key facts
Market value: £152bn
Turnover: (Dec 23E): $343bn
Pre-tax profits: (Dec 23E): $47.8bn
Yield: (Dec 23E): 4.2pc
Most recent year’s dividend: (Dec 22): 86p
Net debt: (March 23): $81.8bn
Return on capital: (Dec 23): 24.6pc
Cash conversion ratio: (Dec 23): 68pc
p/e ratio: (Dec 23E): 6.5
----------------------------------------
For reasons of energy independence and national security it seems likely that the US will have to top up again at some stage.

However, growth in shale oil production in the US appears to be flattening out, especially in the key Permian basin, according to the Energy Information Administration, data that may inform the International Energy Agency’s forecasts that global hydrocarbon supply may grow more slowly than demand in 2023 (and demand is actually seen hitting a new all-time high).

Data from Baker Hughes show that active rig numbers in the US are down by more than 10pc from 2022’s highs, at 696, while the worldwide drop is 8pc to 1,783, compared with February’s high of 1,921. If demand keeps rising, there is a risk that there is not enough supply to meet that demand.

The result could in turn be sharp oil price increases, the last thing that traders seem to expect, although any such spike could lead to the demand destruction (and decisive action to secure new energy sources) that environmental campaigners crave, even if the price could be inflation.

Central banks can print money, but they cannot print oil when it is needed.

Meanwhile, consensus analysts’ forecasts of a drop in after-tax income at Shell in 2023, 2024 and 2025, suggest expectations are low. The shares also look cheap on a dividend yield of more than 4pc, a price-to-earnings ratio of less than seven and relative to £155bn in net assets.

Commodity stocks such as Shell could yet be a useful hedge against a sustained bout of inflation.

Questor says: Hold
Ticker: SHEL
Share price at close: £22.94
Russ Mould is investment director at AJ Bell, the stockbroker
Posted at 10/5/2023 17:37 by jrphoenixw2
Telelgraph/Questor today:
----------------
'Painful for some to admit it, but this stock remains an income staple

Questor share tip: investors prioritising dollars and cents will be pleased to see this giant pumping out cash
----------------


The bumper first-quarter profits published by Shell last week will upset environmental campaigners and many householders alike, especially those who are finding it hard to pay their bills or keep their car topped up.

Even global tax payments of $5.6bn (£4.5bn) in the first three months of the year – $2.1bn more than in the equivalent period in 2022 – may not assuage their fury.

But those investors who desire reliable income and are prepared to focus purely on dollars and cents, nickels and dimes rather than debate environmental, social or governance (ESG) issues, will be pleased to see the oil and gas giant pumping out cash.

Shell handed over $6.3bn via buybacks and dividends in the first quarter alone and annualising that equates to £20bn, or a cash yield in the double-digit percentage range.

That is probably the key number right now because Shell’s earnings do take some studying.

On the face of it, the business model of an oil major is easy enough to understand.

They explore and drill for and then produce hydrocarbons; they ship and refine them; they trade them; and they sell refined product at petrol stations or end-products like chemicals. Simple.

Quantifying how well they do this is a different matter and besides statutory measures such as pre-tax or net (after-tax) income, Shell also refers to earnings before interest, tax, depreciation and amortisation (Ebitda), adjusted Ebitda, adjusted earnings and earnings on a CCS (current cost of supply) basis, which excludes the effect of changes in the oil price.

To quote Ed Murrow, the American broadcaster: “Anyone who isn’t confused really doesn’t understand the situation.”



To cut through all of that, it may be simplest to look at net, or after-tax, income. In the first quarter, Shell reported net profit of $8.7bn, compared with $7.1bn a year ago.

That increase may seem odd, bearing in mind the average prices received by Shell for its oil and natural gas fell by a fifth and two fifths respectively from the first quarter of 2022 to the first quarter of this year.

But Shell booked a $3.9bn writedown on its Russian assets in the first quarter of last year, so profits were down this time compared with a year ago once that is taken into account, thanks to lower hydrocarbon prices, no great change in output and higher taxes.

That meaty net profit figure more than covers the dividend, which equates to a 3.9pc forward dividend yield, according to analysts’ consensus estimates, and the buyback.

As such, it forms the main plank of any investment case for the stock, even if any portfolio-builder who runs strict ESG screens is likely to be unmoved and stick to their own personal principles, especially if they believe oil firms to be profiteering.

The sheer scale of the net profit number inevitably raises that issue.

This column, however, views commodity producers as price takers rather than price givers, by the very nature of their business – a commodity comes with little or no differentiation, by definition, so the supplier’s key tools to attract buyers are efficiency of production and price.

And there are so many influences on the oil price, ranging from global economic growth to geopolitics and sanctions, environmental pressures, the role of Opec and more.

---------
Shell key facts
Market value: £162bn
Last full-year dividend (Dec 22): 86p
Yield (Dec 23E): 3.9pc
Turnover (Dec 23E): $346bn
Pre-tax profit (Dec 23E): $46.1bn
Net debt (Mar 23): $81.8bn
Return on capital (Dec 23): 24.6pc
Cash conversion (Dec 23): 68pc
PE ratio (Dec 23E): 7.0x
---------

Shell probably has more influence on price for refined products, especially those for sale on petrol station forecourts, although drivers will do their best to shop around.

The company’s acknowledgement that trading of crude oil, refined products and petrochemicals contributed strongly to first-quarter earnings is harder to defend against profiteering claims, and campaigners will be pleased, in this context, to see the increased tax charge.

The debate is unlikely to die down and may only recede if oil and gas prices go lower and drag Shell’s earnings with them.

That remains a key risk to the share price and any falls here could offset the benefits of the income, if an investor is obliged to sell the paper at an inopportune moment and has to crystallise any losses.

Fears of a recession leave Brent crude back near $70 a barrel, so the effect of Opec’s April production cut is proving short-lived (to perhaps show how hard it is to profiteer and bend a global market like oil to anyone’s will).

But analysts are already forecasting decreases in net income in 2023, 2024 and 2025, so this is hardly news. The shares look cheap on yield and relative to the company’s £155bn in net assets, while a forward price-earnings ratio of seven looks undemanding. Shell remains an income staple.

Questor says: hold
Ticker: SHEL
Share price at close: £23.76
Posted at 01/4/2023 08:48 by waldron
ENERGY INTELLIGENCE


Shell Drops Singapore Biofuels Project, Splits Renewables


Energy Intelligence Group


Published:
Fri, Mar 31, 2023


Authors
Marc Roussot, Singapore
Tom Daly, London
Editor
Caroline Evans


Shell has opted not to proceed with planned biofuel and base oil projects in Singapore — and separately announced a split in its renewables business as restructuring continues under new CEO Wael Sawan.

The UK major had intended to build a 550,000 ton per year biofuels complex at Bukom to produce sustainable aviation fuel (SAF) and biodiesel.

It also planned to develop a Group II base oil project, providing feedstock for its lubricants production in Singapore.

“We will continue supplying base oil and lubricants, as well as biofuels to our customers in Singapore and the region,” a Shell spokesperson said, adding that the company would draw on its global portfolio to do so.

Transition Questions

The Singapore projects were a cornerstone of the transformation of Shell's Bukom refinery and associated Jurong petrochemical plant in the Southeast Asian city-state. Bukom is one of Shell’s five energy and chemicals parks globally and the only one in Asia.

Their cancellation raises question over Shell’s transition strategy, since they were expected to reduce the company's carbon footprint, particularly its Scope 3 (end-use) emissions.

Shell has already unveiled a plan to halve its operational (Scope 1 and 2) CO2 emissions in Singapore from 2016 levels by 2030.

Bukom was also set to play a key role in the Shell's ambition to produce around 2 million tons per year of SAF by 2025 and for SAF to account for at least 10% of its global aviation fuel sales by the end of the decade.

The company's transition plan is already under scrutiny amid speculation that it may retire its guidance of a 1%-2% annual decline in oil production until 2030.

SAF Uncertainty

The move also throws into question the future of the Bukom plant, whose refining capacity was more than halved back in 2021 to 237,000 barrels per day.

Demand for SAF has been rising in Asia in line with the International Air Transport Association’s call for the aviation industry to achieve net-zero emissions by 2050.

Shell became the first company to supply SAF in Singapore last year, and was well-placed to feed key regional airports.

However, unlike the US and Europe, where biofuels mandates are in place, Asia’s demand for low-carbon fuels is voluntary, creating investment uncertainties.

SAF currently accounts for around 0.1% of aviation fuel used globally and its growth trajectory is unclear. Biofuels remain an expensive product sold at a premium to standard fuels, making them difficult for many price-sensitive Asian buyers to afford.

Renewables Shake-Up

Meanwhile, Shell said separately it is splitting up its renewable electricity business, with wind and solar to come under the control of regional heads of power arm Shell Energy.

The move re-aligns management of Shell's renewable power generation business at a time when the returns delivered by its transition investments — relative to traditional oil and gas projects — are coming under scrutiny.

Shell sets a minimum internal rate of return target of 10% for its renewable projects. "If we cannot achieve double-digit returns in a business, we need to question very hard whether we should continue in that business," Sawan said on the company's fourth-quarter earnings call. "Absolutely, we want to continue to go for lower and lower and lower carbon, but it has to be profitable."

The major will eliminate the global role of executive vice president for renewable generation, held by Thomas Brostrom.

The former Orsted executive will remain at Shell as senior vice president for Shell Energy in Europe and Asia, reporting to Executive Vice President Steve Hill.

Meanwhile, Anna Mascolo, currently Shell's executive vice president for emerging energy solutions, has been appointed executive vice president for low carbon products and sectors, overseeing biofuels, carbon capture and nature-based solutions.

Mascolo and Hill will both report to Huibert Vigeveno, Shell's downstream and renewables director.

In January, Sawan's first month in charge, Shell announced a shake-up that combined its renewables and energy solutions business with its downstream segment. Renewables had previously been grouped with integrated gas.
Posted at 09/2/2023 10:43 by gibbs1
Shell’s board of directors sued over climate strategy in a first-of-its-kind lawsuit
Published Thu, Feb 9 2023
4:07 AM ESTUpdated 45 Min Ago

Sam Meredith
@smeredith19

Key Points

Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday.


It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement.


“We do not accept ClientEarth’s allegations,” a Shell spokesperson said.

Shell recently reported its highest-ever annual profit of nearly $40 billion.

Shell’s directors are being personally sued for allegedly failing to adequately manage the risks associated with the climate emergency in a first-of-its-kind lawsuit that could have widespread implications for how other companies plan to cut emissions.

Environmental law firm ClientEarth, in its capacity as a shareholder, filed the lawsuit against the British oil major’s board at the high court of England and Wales on Thursday.

It alleges 11 members of Shell’s board are mismanaging climate risk, breaching company law by failing to implement an energy transition strategy that aligns with the landmark 2015 Paris Agreement.

The claim, which has the backing of institutional investors with over 12 million shares in the company, is said to be the first case in the world seeking to hold a board of directors liable for failure to properly prepare for the energy transition.

“Shell may be making record profits now due to the turmoil of the global energy market, but the writing is on the wall for fossil fuels long term,” Paul Benson, senior lawyer at ClientEarth, said in a statement.

“The shift to a low-carbon economy is not just inevitable, it’s already happening. Yet the Board is persisting with a transition strategy that is fundamentally flawed, leaving the company seriously exposed to the risks that climate change poses to Shell’s future success — despite the Board’s legal duty to manage those risks,” Benson said.

We hope the whole energy industry sits up and take notice.
Mark Fawcett
Chief Investment Officer at Nest

The group of investors supporting the claim include U.K. pension funds Nest and London CIV, Swedish national pension fund AP3, French asset manager Sanso IS and Danske Bank Asset Management, among others. Altogether, the institutional investors hold more than half a trillion U.S. dollars in total assets under management.

“We do not accept ClientEarth’s allegations,” a Shell spokesperson said. “Our directors have complied with their legal duties and have, at all times, acted in the best interests of the company.”

“ClientEarth’s attempt, by means of a derivative claim, to overturn the board’s policy as approved by our shareholders has no merit. We will oppose their application to obtain the court’s permission to pursue this claim,” they added.

Shell, which is aiming to become a net-zero emissions business by 2050, said it believes its climate targets are Paris-aligned.

ClientEarth said leading third-party assessments have suggested this is not the case, however, noting Shell’s strategy excludes short to medium-term targets to cut the emissions from the products it sells, known as Scope 3 emissions, despite this accounting for over 90% of the firm’s overall emissions.

The aspirational goal of the Paris Agreement is to pursue efforts to limit global heating to 1.5 degrees Celsius above pre-industrial levels by slashing greenhouse gas emissions. The fight to keep global heating under 1.5 degrees Celsius is widely regarded as critically important because so-called tipping points become more likely beyond this level. These are thresholds at which small changes can lead to dramatic shifts in the Earth’s entire support system.

To be sure, the burning of fossil fuels, such as oil and gas, is the chief driver of the climate emergency.
Big Oil profit bonanza

The case comes shortly after Shell reported its highest-ever annual profit of nearly $40 billion.

The energy giant’s 2022 earnings smashed its previous annual profit record of $28.4 billion in 2008 and were more than double the firm’s full-year 2021 profit of $19.3 billion.

Shell CEO Wael Sawan described 2022 as a “huge year” for the company, saying he felt privileged to be stepping into the role he started on Jan. 1.

“As we look ahead, I think we have a unique opportunity to be able to succeed as the winner in the energy transition. We have a portfolio that I think is second to none,” Sawan said.

Shell’s results came as part of a Big Oil profit bonanza last year, bolstered by soaring fossil fuel prices and robust demand since Russia’s full-scale invasion of Ukraine.



Activists from Greenpeace set up a mock-petrol station price board displaying the Shell’s net profit for 2022 as they demonstrate outside the company’s headquarters in London on Feb. 2, 2023.


Nest Chief Investment Officer Mark Fawcett said the case against Shell’s board of directors showed investors were prepared to challenge those who aren’t deemed to be doing enough to transition their business.

“We hope the whole energy industry sits up and takes notice,” Fawcett said.

Separately, London CIV’s Head of Responsible Investment Jacqueline Amy Jackson said, “In our view, a Board of Directors of a high-emitting company has a fiduciary duty to manage climate risk, and in so doing, consider the impacts of its decisions on climate change, and to reduce its contribution to it.”

“We consider that ClientEarth’s claim is in our client funds’ interest
Shell share price data is direct from the London Stock Exchange

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