Shell is considering abandoning the London stock exchange and moving its listing to the USA
Dutch multinational oil company Shell is considering moving its listing from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE), the Telegraph reported on Monday, citing the company's chief executive.
According to the British newspaper, Shell is evaluating “all options” as it complains about the undervaluation of the London stock exchange.
On a year-over-year basis, Shell PLC shares are up 8.68% at $71.63. Last week, Shell said it expects first-quarter natural gas production to beat forecasts, although it warned that earnings will likely be lower than in the fourth quarter of 2023.
Javier Blas for Bloomberg noted on Monday that after Brexit, the U.K.'s breakup with the European Union, "London is concerned about its declining role in global finance," which became clear after the NASDAQ beat the LSE last year for the initial public offering of SoftBank's chipmaker Arm Ltd.
The bigger problem, Blas writes, is Europe's attack on fossil fuels , which has created what he calls "investor apathy" for supermajors like Shell, the largest member of the LSE's FTSE 1000 index.
If Shell leaves the LSE, it could spark an exodus and make fellow London-based multinational BP and commodities trader Glencore uncomfortable, Blas points out.
Shell's time on the LSE could get worse in terms of investor apathy, following its announcement a week ago that it has revised its climate targets in the "Shell Energy Transition Strategy 2024", its first revision since 2021.
The 2030 target, which called for a 20% reduction, was lowered to 15-20% and the corporate carbon intensity target for 2035 was “retired”. Some commentators have noted that Shell appears to be backing away from its previous environmental commitments, which could have an impact in London.
As Oilprice.com reported a week ago, Shell continues to see natural gas as a key aspect of the energy transition, particularly as it increasingly replaces coal as a boiler fuel, and the supergiant sees the flexibility of gas resources as a complement to the growth of renewable energy.
Other energy multinationals such as ENI are listed on multiple markets, the national one and that of New York, precisely to obtain the best from both markets. However, the European media's obsession with climate control is becoming a problem that is weighing down entire industrial sectors of the Old Continent.
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The article Shell plans to abandon the London stock exchange and move its listing to the USA comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/shell-pensa-di-abbandonare-la-borssa-di-londra-e-spostare-la-quotazione-negli-usa/ on Tue, 09 Apr 2024 08:00:34 +0000.