- Shell CEO Ben van Beurden steps down after almost a decade
Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown:
“Ben van Beurden has been at Shell’s helm for almost a decade, so to that end the news of his resignation shouldn’t come as too much of a shock. It’s natural, and arguably right, that leadership gets a fresh pair of eyes at about this time. However, the real news is that it’s Wael Sawan, head of the group’s integrated gas and renewables division, who will be taking the wheel.
For a group whose renewable strategy has been somewhat vague, though grand sounding, this is a clear marker that Shell intends to change this. Change won’t happen overnight, but it’s reasonable to think that at least tweaks to the existing renewable strategy could be on the cards.
It’s a dynamic time to be in charge of an oil and gas major, with oil prices highly reactive, and the public very sensitive surrounding allegations of profiteering and environmental damage. Sawan won’t be ignorant to the fact oil prices can collapse at short notice, and given where we are in the cycle, this is all but guaranteed to be something he’ll have to navigate during his time in the CEO seat. Investors will be looking to assurances on dividend security and renewable strategy first and foremost, and in that order.”
