POST Online Media Lite Edition



 

Shell to simplify and move from Netherlands to UK

Christian Fernsby |
The Board of Royal Dutch Shell announced a proposal to simplify the company’s share structure to increase the speed and flexibility of capital and portfolio actions.

Article continues below




The simplification is designed to strengthen Shell’s competitiveness and accelerate both shareholder distributions and the delivery of its strategy to become a net zero emissions business.

Shell’s Chair, Sir Andrew Mackenzie, said: “At a time of unprecedented change for the industry, it’s even more important that we have an increased ability to accelerate the transition to a lower carbon global energy system. A simpler structure will enable Shell to speed up the delivery of its Powering Progress strategy, while creating value for our shareholders, customers and wider society.”

Shell intends to change its share structure to establish a single line of shares, which is simpler for investors to understand and value. The company will also align its tax residence with its country of incorporation in the UK.

Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since the 2005 unification of Koninklijke Nederlandsche Petroleum Maatschappij and The Shell Transport and Trading Company under a single parent company. It was not envisaged at the time of unification that the current A B share structure would be permanent.

A conventional single share structure will allow Shell to compete more effectively. It will:

Allow for an acceleration in distributions by way of share buybacks, as there will be a larger single pool of ordinary shares that can be bought back.

Following the start of a $2 billion buyback programme in July, Shell announced in September that it will return an additional $7 billion to shareholders following completion of the sale of its Permian assets in the United States.

Strengthen Shell’s ability to rise to the challenges posed by the energy transition, by managing its portfolio with greater agility.

Reduce risk for shareholders by simplifying and normalising Shell’s share structure in line with its competitors and most other global companies. The current complex share structure is subject to constraints and may not be sustainable in the long term.

Following the simplification, shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in Shell.

Shares will continue to be listed in Amsterdam, London and New York (through the American Depository Shares programme), with FTSE UK index inclusion. It is fully expected AEX index inclusion will be maintained. Shell’s corporate governance structure will remain unchanged.

Shell is proud of its Anglo Dutch heritage and will continue to be a significant employer with a major presence in the Netherlands.

Its Projects and Technology division, global Upstream and Integrated Gas businesses and renewable energies hub remain located in The Hague.

Shell’s growing presence in wind projects off the Dutch coast, recent decision to build a world scale low carbon biofuels plant at the Energy and Chemicals Park Rotterdam, plan to build Europe’s biggest electrolyser in Rotterdam, and its intention to participate in the Porthos carbon capture and storage project, all underline the importance of the Netherlands to the company’s energy transition activities.

Carrying the Royal designation has been a source of immense pride and honour for Shell for more than 130 years. However, the company anticipates it will no longer meet the conditions for using the designation following the proposed change. Therefore, subject to shareholder approval of the resolution, the Board expects to change the company’s name from Royal Dutch Shell plc to Shell plc.

Sir Andrew Mackenzie said: “The simplification will normalise our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition. Shell’s Board unanimously recommends shareholders vote in favour of the proposed resolution.”


What to read next

Dutch prosecutors demand Shell pays $3 million fine for 2014 plant blast
Shell completes divestment of oil sands interests in Canada
Shell to sell entire share capital of Shell Iraq

Forget everything you know about hiring people

 
If you ask any consultant about hiring employees you will get the same set of advice you know: state the company's vision clearly, communicate your mission clearly, make a good interview, and such. It's time to forget the rules, times changed.
 
 

Latest

FDA approves Taiho's LYTGOBI (futibatinib) tablets
Avian influenza: France raising level of risk and strengthening prevention measures
Brazil elections: Lula and Bolsonaro to go to the second round
First probable impact crater discovered in Spain

NEWS

U.S.: Lingering rainfall from Ian remnants in Mid-Atlantic, major to record river flooding in Florida

5 killed, injured in Mexican navy helicopter crash incident
Spirit Airlines flight makes emergency landing in Baltimore
Lula favorite in Brazil's elections, Bolsonaro sends dangerous message
Ex-advisor to Pentagon chief: U.S., UK might stand behind Nord Streams incident, not Russians and Germans
5.9 magnitude earthquake strikes southwestern Japan
 

BUSINESS

Russian gas supplies through Ukraine remains same

People in Congo against oil: We'll keep our forests, you keep your dollars
Highlights: September 26, 2022 - October 1, 2022
75 percent of UK voters thinks Truss and Kwarteng lost control of economy
PM Modi launches 5G services in India
Huge rise in electricity bills in UK from today
 

Trending Now

People in Congo against oil: We'll keep our forests, you keep your dollars

Japan consumer confidence deteriorates but remains in positive territory in September

Finland approved subsidy of 5 million euros for fisheries companies

Spain: Current account improves in July


POLITICS

U.S. to provide $810 million to prevent China's aggressive stance in Pacific

Bulgaria, Azerbaijan to expand cooperation on gas supply
Finland considering building fence on its border with Russia
Moldovan president asks EU for additional financial assistance due to energy shortage in Moldova
UK Government support for energy bills begins for households and businesses
Illinois invests $6 million in meat and poultry supply chain capital grant program
 

Today We Recommend

People in Congo against oil: We'll keep our forests, you keep your dollars


Highlights 

Finland considering building fence on its border with Russia

Maple Leaf Foods completes construction of its new world-class London, Ontario poultry plant, to hire 600+

Highest since 1997: Inflation hits record 10% in 19 EU countries using euro


COMPANIES

Teamsters strike Sysco Boston

Gazprom supplies gas for Europe through Ukraine equaling 41.7 mln cubic meters via Sudzha
Nord Stream operator waiting for permits to start assessing pipeline damage
Maple Leaf Foods completes construction of its new world-class London, Ontario poultry plant, to hire 600+
Ingetrac gets new order for 80 converters for 62 trains to Germany and Serbia
Virta Health selected Colorado for its new headquarters
 

CAREERS

Kimberly Nelson named president of Kemin Nutrisurance

Discovery Life Sciences appoints Suso J. Platero as chief scientific officer
Sandeep Johri joins LambdaTest board
Skyresponse appoints Mats Berthem as new CEO
Phathom Pharmaceuticals appoints James Toppe to board
Industrial Logistics Properties Trust appoints Brian E. Donley as CFO
 

ECONOMY

Japan consumer confidence deteriorates but remains in positive territory in September

Poland inflation comes in at highest level since February 1997 in September
Spain: Current account improves in July
Dutch inflation jumps to record 17.1 pct
Italy's annual inflation in September hits highest in nearly 37 years
UK economy still below pre-pandemic size
 

EARNINGS

CarMax Q2 revenues $8.1 billion

Rite Aid Q2 net loss $331.3 million
NIKE Q1 2023 revenues $12.7 billion
Morrisons Q3 revenue up 4.5%
S&W Seed core revenue $71.4 million
Cal-Maine Foods Q1 2023 sales increased 103%
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Finland approved subsidy of 5 million euros for fisheries companies

Avian flu detected in Portuguese capital
Germany says mass fish deaths in Oder river a man-made disaster
New Zealand found additional M. bovis infection inside controlled area notice boundary
Michigan confirms West Nile virus in Saginaw County domestic bird
Funds available to Minnesota's livestock farmers to update livestock operations
 

LEADERSHIP

Cybervetting can have pronounced impact on workforce by broadening discrimination

Female managers pay fairer
Pitch quality of CEO voices rests entirely on gender
Employee turnover costs more than you think
51% of supply chain leaders increased number of network locations
If company overcomes post-IPO innovation slump, it will survive longer
 

CRIME

SEC charges two Canadian programmers for GlobeNewswire with insider trading

Barclays agrees to $361 million settlement to resolve SEC charges relating to over-issuances of securities
Justice department announces total distribution of over $4 billion to victims of Madoff Ponzi Scheme
Bank of Ireland fined EUR100.5 million over tracker mortgage dispute
11 financial institutions to pay over $710m for recordkeeping and supervision failures, unapproved communication
Biogen to pay $900 million to settle allegations related to improper physician payments
 

Magazine

TRAVEL

Sanctuary Cap Cana opens in Dominican Republic

Skate with Olympic star Patrick Chan at Vancouver rinks
Annual Peanut Festival in Aubrey, Tx. is celebration of past and joy of present
Anantara Grand Hotel Krasnapolsky Amsterdam opens
Grand festive season in India starts with Navratri
300 artists from 65 nations will participate in Qatar International Art Festival
 

SEA, LAND, AIR

2023 Ford F-Series Super Duty, built like never before

Caterham Super Sevens, true joy of ride
New Ford Mustang brings digital cockpit, new engines and style
Ram 1500 Limited Elite Edition joins lineup for 2023
2023 GMC Canyon AT4X, new midsize truck
Shelby Code Red, $210,000+ to upgrade your Ford Mustang
 

DESIGN

Noritake tableware, to pass down to the new generation as an heirloom

Tecnografica wallcoverings from the land of ceramic
Poliform, kitchens for extraordinary homes
Luxury vinyl tiles, ideal combination of everything
LED lamps, long-lasting light for every space in your home
Clean and luxurious men's watches
 

GADGETS

Technics SL-1200, the legend keeps spinning

Leica S3, made in Germany for great pictures
Sennheiser HD 300 PROtect, pro headphones that protect your ears
HP Dragonfly Folio G3, very very good laptop for business users
Nokia PureBook Fold and PureBook Lite, flexibility and stylish design
Tascam 202MKVII, professional dual cassette deck
 

HEALTH

New recommendations for terlipressin-containing medicines in treatment of hepatorenal syndrome

Singapore authorises Pfizer COVID-19 vaccine for children aged 6 months through 4 years
Russia’s Vector Center developing mRNA coronavirus vaccine
Shionogi says COVID pill resolves Omicron symptoms faster
Moderna gets EMA review for Omicron BA.4/BA.5 targeting booster shot for aged 12, above
Pharming announces FDA acceptance for priority review of its new drug application for leniolisib
 

MEANTIME

New evidence for liquid water beneath south polar ice cap of Mars

Potential first traces of the universe's earliest stars
New archaeology dives into mysterious demise of Neanderthals
NASA conducts first planetary defense test mission
Mysterious ripples in the Milky Way were caused by a passing dwarf galaxy
Astronomers detect hot gas bubble swirling around the Milky Way's supermassive black hole