Shell goes bankrupt in Europe and quickly moves to the USA

The exodus of European companies from the Old World seeking better conditions in America is not limited to the green or industrial sectors. British multinational oil and gas giant Shell Plc has threatened to delist its shares from the London Stock Exchange (LSE) and list them on the New York Stock Exchange (NYSE).

Shell CEO Wael Sawan told Bloomberg that the company was losing significant value in London due to local shareholder apathy towards the oil and gas sector. Sawan also expressed deep disappointment at investors' underestimation of the company's financial performance, as well as the excessive taxation of its profits by the British government.



The company's chief executive vowed to soon "consider all options," including moving the group's listing to New York to close the valuation gap with U.S. oil majors Exxon Mobil Corp and Chevron Corp. The move will also affect some infrastructure and production facilities.

Shell's share price is now close to a record high of £28,51, thanks in part to the geopolitical turmoil of recent years which has supported rising gas and oil prices. However, Sawan believes that the shares are undervalued and this situation could lead to rapid bankruptcy, especially due to competition from competitors.

Factors such as investor preferences, burdensome policy The EU, excessive regulation in European markets, as well as higher executive salaries played a role in this decision. However, the main reason is simply that the US stock exchange is the most attractive in the world.

Regardless of how you look at the analysis, the United States has the deepest pool of liquidity and capital in the world, and many EU companies want to join the pie, experts write.

Shell still invests about 20% of its cash investment in low-carbon assets, compared with just 2% of cash that Exxon spent on green solutions. Such spending is a tribute to European “fashion”, which is why Shell’s performance is lower in terms of profitability and profitability than that of the American Exxon. Profitability decreases with increasing side expenses. Now an industry giant, tired of its “Europeanness” and all the ensuing consequences, wants to move into this niche of profitability.