A shock warning from Shell over a plan to move its stock exchange listing to New York could fuel the oil and gas exodus
Shell will face questions about its future on the London stock market in 2025, in what will be a crucial year for the energy giant, writes Jessica Clark.
CEO Wael Sawan has warned he will consider moving the listing to New York if efforts to boost its valuation in Britain fail to bear fruit.
He set a deadline to increase value and reduce costs by the end of 2025, before taking more drastic action, including leaving London for the US.
Such a move would be a major blow to the city as Shell is one of the largest companies in the FTSE 100 with a valuation of almost £152 billion.
There are fears that Shell’s departure could prompt rival exploration giants such as miners Rio Tinto and Glencore and oil and gas group BP to follow suit.
“I have a location that is clearly undervalued,” Sawan told Bloomberg in April.
Valuation gap: Shell chief Wael Sawan (pictured) has warned he will consider moving his listing to New York if efforts to boost valuation in Britain fail to bear fruit
He said the oil giant was in a “sprint” to close the valuation gap with US rivals ExxonMobil and Chevron by the end of next year.
If there were no improvements, Sawan said the company would look at “all options,” including the possibility of moving its share listing to New York.
“If we work through the sprint and we still don’t see the gap closing, we have to look at all options,” he said.
Shell declined to comment on its plans for 2025.
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