Shell has moved to ease investor concerns regarding its BG takeover deal during its second quarter earnings presentation.
Shell’s CEO, Ben van Beurden, devoted a considerable amount of time during his presentation to outlining the benefits the combined Shell/BG outfit offers, particularly in the area of LNG production and marketing around the world.
“We are making good progress with the recommended combination with BG, which should enhance our free cash flow, create an IOC leader in LNG and deep water innovation, and be a springboard to change Shell into a simpler and more profitable company,” said Mr van Beurden.
“The regulatory filings process and integration planning are both progressing well. We will re-shape the company once this transaction is complete.
“This will include reduced exploration spend, a fresh look at capital allocation in longer term plays, and asset sales spanning upstream and downstream. This should concentrate our portfolio into fewer, higher value positions, where we can apply our know-how with better economy of scale. In essence, we ‘grow to simplify’.
“The result should be a simpler, more profitable, resilient and competitive Shell, able to deliver better returns to shareholders,” said Mr van Beurden.