Shell has confirmed that it continues to assess whether to move its stock market listing from London to New York, but CEO Wael Sawan clarified that it is not a live discussion at the moment. The energy giant has long debated shifting its primary listing, citing a valuation gap with US competitors, making it more costly to raise capital compared to firms like ExxonMobil.
Speaking to CNBC after Shell announced a 16% drop in annual profits, Sawan stated that the company regularly reviews its headquarters and listings but emphasized that its top priority remains unlocking the company’s full potential.
Shell’s 2024 earnings fell to $23.7 billion from $28.3 billion in 2023, as oil prices cooled following the energy market spikes triggered by Russia’s invasion of Ukraine. Despite the earnings dip, Shell increased its dividend by 4%, reassuring investors and lifting its stock price by 0.5% following the announcement.
Shell has a history of restructuring its listings. In 2022, it ended its dual-share structure, moving its headquarters from Amsterdam to London, citing tax and regulatory considerations.
A potential shift to New York would place Shell closer to the US market, where oil firms generally trade at higher valuations. Some analysts speculate that the return of Donald Trump to the White House could influence future decisions, given his pro-fossil fuel policies and past decision to withdraw the US from the Paris Climate Accord.
Despite global efforts to transition to net-zero emissions, oil companies like Shell face a balancing act between shareholder demands for returns and investment in renewable energy.
Shell’s next capital markets day in March is expected to provide more clarity on its long-term strategy, particularly as investors weigh its role in the evolving energy landscape.
“Shell remains at a crossroads, torn between the seemingly inevitable pull of the energy transition and the demands of shareholders,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
With oil prices fluctuating and increasing pressure for renewable energy investments, Shell’s future listing location and strategic direction remain closely watched by investors and policymakers alike.