Shell chief executive Wael Sawan has warned he is open to moving the oil giant’s primary listing away from London if the company’s shares remain undervalued compared to international rivals.
“I have a location that clearly seems to be undervalued,” Sawan told Bloomberg, referencing the disparity in valuations between the firm and US-listed rivals Chevron and ExxonMobil.
Moving its primary listing would require the support of 75% of shareholders.
Shell is the largest constituent of the FTSE 100 index at £180.8bn market cap, while fellow oil and gas majors BP and Glencore also sit among the top 10.
The oil major is currently looking to cut costs and simplify the organisation while buying back shares to boost its valuation in what Sawan describes as a “sprint” over the next 10 quarters.
“If we work through the sprint, and we are doing what we are doing, and we still don’t see that the gap is closing, we have to look at all options. All options,” he said.
Shell’s share price rose 1.2% to £28.14 on Monday (8 April).
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