Email was sent out yesterday. Anyone have more info on it?
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So what's everyone make of the Starburst meetings on monday for DP, Geismar and Monaca? Only SVS or the start of something bigger? Sale imminent or last ditch effort to get profitable?
honestly it’s not an awful plan.
the thing is that the downside is that the company is permanently shrinking.
there is a point where this plan won’t work because there are no new assets being made and being a major player in the industry requires a certain amount of scale and relevance
playing chicken and only upping stakes in proven reserves while juicing metrics and dividends as you literally shrink into nothing and buy up your own float is not a long term plan. it is the plan of a chicken to look good enough for five years before running away from whatever husk is left.
unless - within a limited number of years from now there is capital invested for a new asset again. will that happen? doubt it. will YL even be there to do it? average tenure is 4 years for a ceo we’re almost at 3…
it’s more likely exxon buys shell in 10 years than shell buys any piece of BP ever.
@nd
Post ID: @n5+1jzmy1brb
First, I agree, but add more.
Share buyback is used to mask that the company is less profitable overall and per share. They've purchased 25% of the shares value in that time, meanwhile increased the dividend by about 12%. Thanks to the above average price of oil we don't see just how much Shell's production shrank ( hint >30%) and the revenue went down 25% (page 241 of the annual report) in that time. The shareholders get lower dividends than they could... but the per share optics look less bleak. It is a game of misdirection.
it has been 2.5 years and over fifty billion dollars of buying back the stock because “we are undervalued”
so far throwing darts at the S&P 500 would have made a lot more money.
he literally has two moves. but and buy back stock. it’s incredible.
the problem with this industry is that nobody does anything unless somebody else does it first and proves it works. so right now our executives are being paid to do nothing.
our culture is failing because YL has made it clear that spending money on something besides stock gets you fired. so nobody can invest anymore in their employees or assets or teams well being
capital penny pincher will not be remembered well
Anyone able to share what this is about and the email with the info? Again, this is YL secret mode now - he wants it to be hidden from the wider workforce, so please get us in the loop.
He’ll try to distract every one with Ferrari drivers, safety day and de&i initiatives , but please share what he’s really doing!
Still waiting for project 'make the bloody stock price go up'
who comes up with these silly project names
This means they are now targeting are parts of the company that did not have reorg
@gc Think this is only chemicals…
Couple of questions, is this only for chemicals or would include renewable and downstream as well??
I am not sure about chemicals, but i believe downstream and renewable just had their own reorg done less than a year ago, is not it???
project starburst will be a practice run for IDT under Wael in 2026
So likely 2000 to 2500 shell/consulting staff will be effected. I'm using $200,000 as the average comp for an employee.
I believe it is looking at trying to remove roughly $500M in structural costs to make the chemicals business profitable. That is what the email stated.