Shell has to repay investors who backed its biggest ever wager
Over 80% of shareholders backed its record purchase of BG Group despite risks from slumping oil prices
London
ROYAL Dutch Shell is under pressure to reward the faith of the more than 80 per cent of shareholders who shrugged off the risks from slumping oil prices to back its record acquisition of BG Group.
That won't be easy: the rout in crude has cut the value of Europe's biggest oil company to the lowest in more than 10 years and raised investor concerns that its dividend is unsustainable. CEO Ben Van Beurden, who expended a lot of political capital convincing investors that BG will help Shell ride the downturn, has to deliver promised benefits from liquefied natural gas to deepwater oil production as billions of dollars of cash flow is choked off.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Gold prices tick higher on US rate cut bets
Oil steadies as ceasefire eludes Hamas, Israel
Shell to exit South Africa's downstream businesses
EU clears Nippon Steel's US$14.9 billion purchase of US Steel
Asian central banks, consumers flock to gold amid currency weakness, macro uncertainty
Shell in talks to sell Malaysia fuel stations to Saudi Aramco: sources