MOSCOW (MRC) -- Shell said Nov. 15 it plans to scrap its long-standing dual share system and move its tax residence to the UK to simplify its structure, boost competitiveness and accelerate shareholder distributions, reported S&P Global.
Shell said it will propose to shareholders moving to single class of shares to bring it in line with its competitors and most other global companies.
Shell has been incorporated in the UK with Dutch tax residence and a dual share structure since 2005. Its origins as a dual structure company date back to 1907 when Koninklijke Olie merged with Shell Transport and Trading.
"The simplification will normalize our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition," Shell chair Andrew Mackenzie said in a statement.
As a result of the changes, Shell said it expects to change the company's official name from Royal Dutch Shell to Shell.
Shell, like all its European energy major rivals, has set targets to shift away from oil and gas production as it ramps up spending on renewables such as solar and wind power. The company says its oil production has already peaked in 2019.
In addition to changing its tax residence to UK, Shell said its chief executive and a chief financial officer will be located in the UK along with its board and executive committee meetings. Following the simplification, Shell shareholders will continue to hold the same legal, ownership, voting and capital distribution rights in Shell. Shares will continue to be listed in Amsterdam, London and New York, with FTSE UK index inclusion.
As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.