- Shell chief executive Ben van Beurden is stepping down after nine years in the job
- Successor Wael Sawan will take over, beating out several other internal candidates
The Shell (SHEL) board will hand the reins of the cash-machine energy major to integrated gas boss Wael Sawan, who will take over from Ben van Beurden at the beginning of 2023. The changeover comes as the energy major has seen a significant turnaround in its finances and outlook after Russia's invasion of Ukraine sent oil and gas prices soaring, supercharging sector profits.
This will leave Sawan, a Canadian who studied chemical engineering in the 1990s, with the job of keeping investors keen for supply discipline and continued cash returns happy as well as ramping up the company's plan to cut emissions intensity and grow its green businesses.
Analysts called him the natural choice given his experience on the production side and previous time in senior downstream roles.
Shell chair Sir Andrew Mackenzie said Sawan would “accelerate the delivery” of the company’s greener strategy.
“His track record of commercial, operational and transformational success reflects not only his broad, deep experience and understanding of Shell and the energy sector, but also his strategic clarity,” Mackenzie said.
He had reportedly been up against new chief financial officer, Sinead Gorman, and upstream and downstream bosses, Zoe Yujnovich and Huibert Vigeveno, for the top job.
Van Beurden saw Shell through the lengthy pricing slump that hit financial performance after he took over in 2014, as debt rose and questions over future strategy in the face of climate change became louder. By 2021, he had announced big targets (although less aggressive than BP's under its new boss at the time, Bernard Looney) and was coming out of the pandemic storm after Covid-19 had knocked energy demand.
The company announced mass layoffs and cut its dividend, but as demand recovered it quickly returned to a stronger position financially after cutting project and staff costs heavily during the downturn. When prices picked up again in 2021, the company brought in a huge buyback programme, bolstered by asset sales. Shell ticked up $30bn of divestments under van Beurden's tenure.
The record profits were helped by an early van Beurden move - the BG takeover, which is still the biggest in the company’s long history. The $52bn (£45bn) deal grew Shell’s gas trading business and liquefied natural gas (LNG) capabilities. Recently, he unified the company structure (losing the 'Royal Dutch' from the company's name) and moved the headquarters to London from The Hague, while maintaining a sizeable Dutch office.
Mackenzie said the outgoing chief executive - who will remain an advisor until mid-2023 - had left the company “ fitter, stronger and equipped to succeed in the energy transition”.
Our recent cover story looks at the prospects of Shell and fellow energy major BP given the major shift in energy markets seen this year. Read it here.
