UK Media: Shell Considering Ditching London Exchange for New York

Dutch oil supermajor Shell is considering shifting its listing from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE), the Telegraph reported on Monday, citing the company’s CEO. 

According to the UK daily newspaper, Shell is considering “all options” as it bemoans under-appreciation on the London stock exchange. 

Year-to-date, Shell PLC’s stock is up 8.68% at $71.63. Last week, Shell said it expected its Q1 natural gas production to beat guidance, though it cautioned that earnings would likely come in lower than they did in Q4 2023. 

Javier Blas for Bloomberg noted on Monday that since Brexit, the UK’s break-up with the European Union, “London has been worried about its declining role in global finance”, which came into clear view after the NASDAQ beat out the LSE last year for the initial public offering of SoftBank’s Arm Ltd chip-maker. 

The bigger problem, Blas writes, is Europe’s attack on fossil fuels, which has created what he calls “investor apathy” for supermajors such as Shell, the biggest member of the LSE’s FTSE 1000 Index. 

If Shell quits the LSE, it could lead to an exodus and make things uncomfortable for supermajor BP and commodities trader Glencore, Blas points out. 

Shell’s time on the LSE could worsen in terms of investor apathy after its announcement a week ago that it had revised its climate goals in its “Shell Energy Transition Strategy 2024”--its first revision since 2021. 

The target for 2030, which had been a 20% reduction, was lowered to 15-20% and the corporate carbon intensity target for 2035 was “retired.” Some commenters noted that Shell appeared to be backing away from its previous environmental commitments, which could reverberate in London. 

As Oilprice.com reported a week ago, Shell continues to view natural gas as a key facet of the energy transition, particularly as it increasingly displaces coal as a boiler fuel, and the supergiant views the flexibility of gas resources as a complement to the growth of renewables.

By Charles Kennedy for Oilprice.com

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