While Europe’s three leading oil majors — BP, Shell and TotalEnergies — have seen their share prices gain some 10% this year, the glaring valuation gap to their US rivals Chevron and Exxon Mobil persists and is becoming an issue that must be addressed. One mooted quick fix for some — the transfer of listings to the US — has returned to the fore after Shell CEO Wael Sawan left the door open to a move to the New York Stock Exchange if the gap remains next year. Currently focused on a disciplined sprint through 2025, Sawan would have “no option” but to start focusing on longer-term thinking and strategy beyond that, one former oil executive said. Shell’s $225 billion market capitalization in London is less than half of Exxon’s, even though its 2023 adjusted profits of $28.25 billion were about 25% below the US major’s. Sawan and his counterparts at BP and Total can expect to be quizzed on the merits — and likelihood — of a move during upcoming earnings calls and annual meetings. “I think it’s a bit more feasible now to make that argument” that Shell is significantly undervalued versus Exxon and Chevron, the former executive said, describing the current gap as “enormous.”
