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Top executives at Shell (NYSE:SHEL) in 2021 explored moving the company’s stock market listing and headquarters to the U.S. from the U.K., Financial Times reported earlier Tuesday.
Wael Sawan, now Shell’s (SHEL) CEO, was among a group of top managers who discussed the advantages of shifting the company’s listing and headquarters to the U.S., according to the report.
The executive team ultimately decided to leave the Netherlands but consolidate its base and stock market listing in London.
“During formal discussions about the HQ relocation, Wael did not advocate for a move to the U.S.,” Shell (SHEL) told FT.
Although the company did not follow through with a move to the U.S., the motivation that led to the potential move remains: Sawan is concerned about the widening valuation gap between Shell (SHEL) and U.S. rivals Exxon Mobil (XOM) and Chevron (CVX).
Exxon (XOM) and Chevron (CVX) are valued at ~6x their cash flow, compared with ~3x for Shell (SHEL).
Touting Shell’s (SHEL) “highest quality combination of assets in the sector, with a leading global LNG and marketing businesses and strong chemical presence,” Goldman Sachs this week upgraded the stock to Buy with an $85 price target.
