Shell posts bumper profits amid US listing fears

Shell raked in bumper profits of more than £6bn in the first three months of the year, fuelling fears that it could ditch london for New York.

The energy giant sent shock waves through the City earlier this month when its boss Wael Sawan revealed Shell was looking at ‘all options’, including moving its share listing to Wall Street.

Analysts yesterday said Shell’s firstquarter update and the ‘muted’ market reaction – shares rose just 1.9pc – could lead to calls for the firm to switch.

Sawan reportedly told the Financial Times that moving the listing is ‘not currently a live discussion’ but the option would be kept under review.

It came as French finance minister Bruno le Maire said rival energy major Total energies must keep its listing in Paris. The firm this week threatened a move to New York due to tougher climate policies in europe. Shell reported profits of £6.15bn – or £46,000 a minute – in the first quarter, beating expectations. earnings came in around £800m higher than forecast and were 6pc more than the previous three-month period.

But it was less than the first-quarter profit of £7.7bn reported a year earlier.

Shell – europe’s biggest oil firm – also announced a fresh £2.8bn share buyback. The update came amid fears Shell will switch its main listing to New York.

The oil major wants to close the valuation gap with US rivals. And analysts said Shell’s bumper results yesterday could add more fuel to the fire.

RBC Capital Markets analyst Biraj Borkhataria said: ‘The valuation disconnect continues to look extreme to us.’

And AJ Bell investment director Russ Mould said: ‘The relatively muted market reaction to Shell’s better-thanexpected earnings and unveiling of a £2.8bn share buyback may fuel the argument it would be better served by listing in the US.’ however, he added pressure on oil prices yesterday may have contributed to the market response.

Shell is the biggest company in the FTSE 100 with a value of £180bn.

earlier this month Sawan said the ‘gap’ between the valuation on Shell shares and those of New York-listed rivals represented ‘ a fantastic investment opportunity’.

Referring to the firm’s strategy to buy back shares to boost the price, he told Bloomberg: ‘ You can worry about the gap or you could buy the gap.

‘If 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.’