The underperformance of the share price reflects investors’ dissatisfaction with the fact that “Europe’s biggest oil company is burning through cash at an extraordinary rate.” The appointment of van Beurden, head of Shell’s refining division who started at the company 30 years ago, has left investors unimpressed as they see him as yet another chief executive steeped in a culture of spending big on mammoth engineering projects.
by Branimir Kondov, : 11:12 GMT, Nov 25 2013
EXTRACTS
iNVEZZ.com, Monday, November 25: Investors are concerned that Ben van Beurden, the incoming boss at the helm of Royal Dutch Shell (LON:RDSA, LON:RDSB), will not attempt to rein in the company’s massive spending on new projects. According to an article published yesterday by the Sunday Times, there has been no indication so far that van Beurden, who will replace Peter Voser as chief executive on January 1, 2014, is going to to rethink Shell’s plan to spend $130 billion (£80.1 billion) on new developments between 2012 and 2015.
The underperformance of the share price reflects investors’ dissatisfaction with the fact that “Europe’s biggest oil company is burning through cash at an extraordinary rate.”
The appointment of van Beurden, head of Shell’s refining division who started at the company 30 years ago, has left investors unimpressed as they see him as yet another chief executive steeped in a culture of spending big on mammoth engineering projects.
