CEOs of Shell and BP reportedly face the same challenge as this week as they prepare to report the annual results of their firms, but at very different times in their careers. Wael Sawan, who took over as CEO of Shell at the beginning of the year, will make his City debut.
Meanwhile, Three years have passed since Bernard Looney become the CEO at BP and made significant waves by announcing a new goal for the firm, to reach net zero emissions by 2050 or sooner.
Each of them needs to assure the public that they are not taking advantage of the UK energy crisis to make money while pleasing investors.
Profits increased in 2022 as a result of high gas prices brought on by Russia’s attack on Ukraine, and are anticipated to remain high compared to historic norms this year. In contrast, oil prices increased in the initial weeks of 2023 as the Chinese economy began its recovery.
On Thursday, Sawan will take the stage first when he introduces Shell's first full-year results following the completion of the move of its offices to London, where the company started in the 1830s as an oriental seashells importer. Since taking on the position, Wael has not wasted any time and has reviewed Shell's domestic energy delivery operations in Europe.
Shell's numbers will be shockingly eye-watering: revised annual profits are estimated to be over $83 billion, up from $55 billion a year ago, and to include about $19 billion in the year's fourth quarter, up from $16.3 billion during the same period of 2021.
The coveted dividend of the company, which was for the first time since WWII reduced during the Covid downturn, has increased by 15%.
The fact that Shell is investing $18.5 billion on the buyback of its own stock this year has only fueled calls for the company to put more of its cash into clean energy and less on repaying shareholders. This year's capital investment is estimated to range between $23 billion and $27 billion, with renewables accounting for a very minor fraction of this total.
Source credit: https://www.theguardian.com/business/2023/jan/29/shell-and-bp-face-tough-job-of-keeping-customers-and-investors-happy-as-profits-roll-in