Wael Sawan sets up town hall for later this month to discuss clean energy strategy and investment shift
“We appreciate that our staff are engaged in and have passion for both the energy transition and Shell,” a company spokesperson said. “That is important and we welcome an open dialogue.”
Culture Shift
Sawan, who took over as chief executive from Ben van Beurden earlier this year, has said that Shell must undergo a “fundamental culture shift” to regain investor confidence. He has also stated that the company needs a “ruthless” focus on capital allocation and should only invest in low-carbon operations that have a clear pathway to profitability.
“We need to be able to cover our cost of capital and make a return for our shareholders,” Sawan said earlier this week at a conference in Abu Dhabi.
Shell hasn’t changed its commitment to achieve net zero emissions by 2050, the spokesperson said. “By focusing on performance, discipline and simplification, Shell will improve its value and in doing so, enable us to more effectively invest in low- and zero-carbon activities.”
Investors have warmed to Sawan and his strategy, helping to narrow the valuation gap between Shell and U.S. peers Exxon Mobil Corp. and Chevron Corp. The London-based company is the best performer among the five supermajors this year with a return of about 15 per cent including dividends, compared to six per cent for Exxon and an eight per cent decline for Chevron, according to data compiled by Bloomberg.
The biggest asset sale so far has been Shell’s home energy retail business in the U.K. and Germany, which will result in about 1,800 employees leaving the company for Octopus Energy Ltd. Shell had 93,000 employees as of the end of 2022, about 50 per cent more than Exxon despite having less than half the market value of its U.S. rival.
Share This:
