On Monday, Shell PLC (SHEL) shares went through the roof on the back of rising energy prices. This was not the only contributing factor to the company’s positive market performance.
Shell shares after new CEO’s focus on oil and gas
Experts believe that the focus of the outfit’s new chief executive officer (CEO), Wael Sawan, on key oil and gas dealings also enticed investor interest. During Monday’s trading, Shell’s shares climbed to 2,763 pence in London at a stage.
This share price recovery comes after multiple strategic turning points. During the pandemic, oil and gas prices plummeted. Ben van Beurden, the Shell CEO at that time, reduced the company’s dividend by two-thirds and committed to cleaner energy, pledging to achieve net-zero greenhouse gas emissions by 2050.
After taking the wheel, Sawan stuck to this green commitment while channelling greater proportions of investment into oil and gas. Analysts feel he is trying to gain investors through higher returns and an unwavering focus on financial performance and strategy.
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Higher commodity prices, especially that of natural gas in Europe, gave Shell shares a helping hand. In a Bloomberg report, analyst Allen Good confirmed the impact of this new strategy and suggested that the strategic changes announced earlier this year likely attract more investors.
He also highlighted the weaker pound and euro performance against the dollar as a driver for this company’s market performance. On Friday, Shell ended off the week at 2,722 pence per share.
