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Shell shares here in the US are up by about one percent after the company's Capital Markets Day at the New York Stock Exchange. One highlight plans to become the world's top LNG trader, saying it's going to expand sales by forty five percent a year until twenty thirty. The British energy giant, also vowing to increase shareholder returns and cut spending. Joining us to discuss this further is Wile Swan Shell CEO, joining us from the floor of the New York Stock Exchange. While really great to see you, Thank you so much for joining us. Congrats on getting through the day. Huge LNG targets, in particular how much it's going to make up in terms of your business twenty thirty percent larger by twenty thirty.

Shell shares here in the US are up by about one percent after the company's Capital Markets Day at the New York Stock Exchange. One highlight plans to become the world's top LNG trader, saying it's going to expand sales by forty five percent a year until twenty thirty. The British energy giant, also vowing to increase shareholder returns and cut spending. Joining us to discuss this further is Wile Swan Shell CEO, joining us from the floor of the New York Stock Exchange. While really great to see you, Thank you so much for joining us. Congrats on getting through the day. Huge LNG targets, in particular how much it's going to make up in terms of your business twenty thirty percent larger by twenty thirty.

How do you get there? Yeah? Thanks Alex. Look, we're very proud of where we are today.

How do you get there? Yeah? Thanks Alex. Look, we're very proud of where we are today.

Today in the Capital Markets Day, we took a polls and reflected on the journey we've been on over the past couple of years, and the key message was one of trying to instill confidence. Here's a company that has delivered what it said it was going to do and actually over delivered in certain areas, and beyond that, as you rightly pointed out, we've also today laid out as a vision aut to twenty thirty five that has LNG at the heart of it. We believe LNG is going to be a critical part of the energy system and we want to be the leading player energ But our story also has lots of richness around wanting to sustain material liquids production and being the most competitive and the most focused energy marketer and energy trader in the world, And so a holistic story that I think we're very proud to be able to say is well on track.

Today in the Capital Markets Day, we took a polls and reflected on the journey we've been on over the past couple of years, and the key message was one of trying to instill confidence. Here's a company that has delivered what it said it was going to do and actually over delivered in certain areas, and beyond that, as you rightly pointed out, we've also today laid out as a vision aut to twenty thirty five that has LNG at the heart of it. We believe LNG is going to be a critical part of the energy system and we want to be the leading player energ But our story also has lots of richness around wanting to sustain material liquids production and being the most competitive and the most focused energy marketer and energy trader in the world, And so a holistic story that I think we're very proud to be able to say is well on track.

Are you worried at all about a potential looming LNG supply glut and kind of betting really big on this for the next ten years at a time where there's just too much supply coming online?

Are you worried at all about a potential looming LNG supply glut and kind of betting really big on this for the next ten years at a time where there's just too much supply coming online?

Okay, my job, I have to look at twenty years and what I see when I do that is up to twenty forty, we see a potential sixty percent increase in overall LNG demand. We have a diversified port for you, both of production sources as well as demand options, and we are very much looking to leverage that global diversity of production and customer contracts to be able to create value.

Okay, my job, I have to look at twenty years and what I see when I do that is up to twenty forty, we see a potential sixty percent increase in overall LNG demand. We have a diversified port for you, both of production sources as well as demand options, and we are very much looking to leverage that global diversity of production and customer contracts to be able to create value.

Importantly, our LNG port.

Importantly, our LNG port.

For you is heavily linked to long term contracts that are tied to brand, which means we have a lot of resilience and so we can ride at the inevitable cycles in this business while making sure that the underlying cash flow continues to come from this business.

For you is heavily linked to long term contracts that are tied to brand, which means we have a lot of resilience and so we can ride at the inevitable cycles in this business while making sure that the underlying cash flow continues to come from this business.

So what should investors look for in terms of the capacity increase on your energy output?

So what should investors look for in terms of the capacity increase on your energy output?

Very much what we outline today, which is four to five percent per year, So indeed the twenty to thirty percent by twenty thirty, and that's just to twenty thirty. We see more running room beyond that, we have projects that we can evolve over and above that. But what's unique around our LNG business is not just the production piece. We are actually also selling roughly the equivalent amount not just of what we produce, but also another equivalent amount to that because we're also one of the largest optimizers of LERG in the market, and so in any year we're selling around sixty million tons of LNG, which is significant, and so we are trying to continue to build up our portfolio to really have that diversity and to be able to make sure that we can continue to essentially stay in the fifteen to twenty percent of the overall LG market is what we represent.

Very much what we outline today, which is four to five percent per year, So indeed the twenty to thirty percent by twenty thirty, and that's just to twenty thirty. We see more running room beyond that, we have projects that we can evolve over and above that. But what's unique around our LNG business is not just the production piece. We are actually also selling roughly the equivalent amount not just of what we produce, but also another equivalent amount to that because we're also one of the largest optimizers of LERG in the market, and so in any year we're selling around sixty million tons of LNG, which is significant, and so we are trying to continue to build up our portfolio to really have that diversity and to be able to make sure that we can continue to essentially stay in the fifteen to twenty percent of the overall LG market is what we represent.

So once you get to twenty thirty while what actually happens to the oil side of this business.

So once you get to twenty thirty while what actually happens to the oil side of this business.

So we have a very clear pathway to sustain our liquids production to the tune of around one point four million baros per day between now and twenty thirty, and we have plans to extend that plateau well into the future. So we already have plans in place for that. And so the key areas where we see growth at the moment are our integrated gas business, as we've talked about LNG, but also I would say our marketing business, our mobility business, which is the leading franchise in the world, our lubricants business, which is another core part of our overall value proposition. So those will be growth trajectories and are sustained liquid production will allow us to have the fundamental underpinning that continues to keep us as a scale company.

So we have a very clear pathway to sustain our liquids production to the tune of around one point four million baros per day between now and twenty thirty, and we have plans to extend that plateau well into the future. So we already have plans in place for that. And so the key areas where we see growth at the moment are our integrated gas business, as we've talked about LNG, but also I would say our marketing business, our mobility business, which is the leading franchise in the world, our lubricants business, which is another core part of our overall value proposition. So those will be growth trajectories and are sustained liquid production will allow us to have the fundamental underpinning that continues to keep us as a scale company.

Overall sustained liquids doesn't sound like growing oil production. And you know, this is my way of asking about you guys don't have Permian assets.

Overall sustained liquids doesn't sound like growing oil production. And you know, this is my way of asking about you guys don't have Permian assets.

So what we have is a very diverse portfolio. We have the largest position in the Gulf of America, we have the largest position in Brazil, which are the two premier deep water basins in the world. It requires a lot of running just to stay flat. So these portfolios are declining anywhere between four to six percent per year, so one has to stay running fast just to stay flat. Beyond that, we will look at opportunities and we will continue to look at those opportunities. But of course we've left the Permian and we believe that the opportunities we have in front of us in the Gulf of America, in Brazil, in many of our heartlands like Kazakhstan, Oman Malaysia, those are the places where we want to continue to strengthen our portfolio.

So what we have is a very diverse portfolio. We have the largest position in the Gulf of America, we have the largest position in Brazil, which are the two premier deep water basins in the world. It requires a lot of running just to stay flat. So these portfolios are declining anywhere between four to six percent per year, so one has to stay running fast just to stay flat. Beyond that, we will look at opportunities and we will continue to look at those opportunities. But of course we've left the Permian and we believe that the opportunities we have in front of us in the Gulf of America, in Brazil, in many of our heartlands like Kazakhstan, Oman Malaysia, those are the places where we want to continue to strengthen our portfolio.

The analyst notes about today, we're all relatively positive. RBC has had a really nice quote said today reads is more evolution than revolution, And I'm wondering if the revolution part is what investors need to see to have Shell Share start to outperform the likes of Exxon as well as chev Run, and would that evolution be buying a US gas producer doing some sort of substantial oil deal.

The analyst notes about today, we're all relatively positive. RBC has had a really nice quote said today reads is more evolution than revolution, And I'm wondering if the revolution part is what investors need to see to have Shell Share start to outperform the likes of Exxon as well as chev Run, and would that evolution be buying a US gas producer doing some sort of substantial oil deal.

I think there's a couple of dimensions to that question. I'm very pleased with the evolutionary nature of it, and it's important that one footnote in all that discussion is that we have brought back around twenty plus percent of our share share register over the last three years, and a big part of what we announced today is we will continue to preferentially lean towards buybacks, having indeed increased the overall distributions to forty to fifty percent of our CFFO.

I think there's a couple of dimensions to that question. I'm very pleased with the evolutionary nature of it, and it's important that one footnote in all that discussion is that we have brought back around twenty plus percent of our share share register over the last three years, and a big part of what we announced today is we will continue to preferentially lean towards buybacks, having indeed increased the overall distributions to forty to fifty percent of our CFFO.

On this trajectory that we're on.

On this trajectory that we're on.

We will have quietly bought another forty percent of the company by twenty thirty. Need to me, the revolution is not in singular actions. It's in looking at the life cycle over a period of seven eight years. If we can buy more than half of this company, that is what is truly going to be differentiated and transformational for our shareholders.

We will have quietly bought another forty percent of the company by twenty thirty. Need to me, the revolution is not in singular actions. It's in looking at the life cycle over a period of seven eight years. If we can buy more than half of this company, that is what is truly going to be differentiated and transformational for our shareholders.

So while I do want to ask you though about just the general structure, I mean a lot of in terms of the cash giving back. There has been a lot of discussion in analyst circles about this idea of why we haven't seen more balance between the dividend versus the buybacks relative to some of your competitors.

So while I do want to ask you though about just the general structure, I mean a lot of in terms of the cash giving back. There has been a lot of discussion in analyst circles about this idea of why we haven't seen more balance between the dividend versus the buybacks relative to some of your competitors.

Yeah, it's a great question. I think the first thing I keep getting asked is can you grow your overall share of distributions, And thankfully we've been able to move from twenty to thirty, to thirty to forty to forty to fifty, so big tick there.

Yeah, it's a great question. I think the first thing I keep getting asked is can you grow your overall share of distributions, And thankfully we've been able to move from twenty to thirty, to thirty to forty to forty to fifty, so big tick there.

Then.

Then.

Indeed, it's the balance of how we want to return capital. It's a point that you both made earlier, which is we still find that our fundamental valuation does not fully price the cash flows we see into the future. So what a great opportunity to be able to use remarginal dollar of distributions to be able to buy back our shares and create that life cycle value.

Indeed, it's the balance of how we want to return capital. It's a point that you both made earlier, which is we still find that our fundamental valuation does not fully price the cash flows we see into the future. So what a great opportunity to be able to use remarginal dollar of distributions to be able to buy back our shares and create that life cycle value.

For our shareholders.

For our shareholders.

By the way, we have increased our dividend per share by twenty five percent over the last two years, and we have a four percent progressive policy around our dividends, so we are addressing the dividend. But today the right capital allocation option is to go into more buybacks, and that's what you see us doing.

By the way, we have increased our dividend per share by twenty five percent over the last two years, and we have a four percent progressive policy around our dividends, so we are addressing the dividend. But today the right capital allocation option is to go into more buybacks, and that's what you see us doing.

Investors also, while have also I guess pondered, if not asked, the question about your listing. Obviously your primary listing overseas you're standing there on the floor of the New York Stock Exchange. Has there been any sort of meaningful discussion dot consideration about making the US your primary place of listening.

Investors also, while have also I guess pondered, if not asked, the question about your listing. Obviously your primary listing overseas you're standing there on the floor of the New York Stock Exchange. Has there been any sort of meaningful discussion dot consideration about making the US your primary place of listening.

There has been, and indeed we made the decision a couple of years ago to move our listing or to move sorry our headquarters over.

There has been, and indeed we made the decision a couple of years ago to move our listing or to move sorry our headquarters over.

To the UK.

To the UK.

At the heart of it, our focus is to make sure that we are driving the fundamentals up to me. That means growing the free cast of the company. Yes, listing might add different liquidity, but we're already very liquid here in the US. Over fifty percent of our shareholder base is a US shareholder base, so we are attracting many of the investors that believe in the investment thesis we have. And so while we focus today on making sure that we're pulling every lever to build consistency, to build resilience, and to build longevity, of course we keep all options open. Right now, a change of listing is not a live discussion, but it's always under review, and of course we'll look at it when the time is right.

At the heart of it, our focus is to make sure that we are driving the fundamentals up to me. That means growing the free cast of the company. Yes, listing might add different liquidity, but we're already very liquid here in the US. Over fifty percent of our shareholder base is a US shareholder base, so we are attracting many of the investors that believe in the investment thesis we have. And so while we focus today on making sure that we're pulling every lever to build consistency, to build resilience, and to build longevity, of course we keep all options open. Right now, a change of listing is not a live discussion, but it's always under review, and of course we'll look at it when the time is right.

It feels like a no for now. While I'm just going to paraphrase that going back to M and A for a moment, You're going to love this question. But when it comes to say BP, I know you get a lot of questions on when, if how are you going to buy VP, But I want to approach it from another angle and talk about synergies. A big part of your outperformance in the past couple of years has been synergies and weeding out those costs. At what point does BP become so cheap you just cannot avoid looking at them for those synergies, Alex.

It feels like a no for now. While I'm just going to paraphrase that going back to M and A for a moment, You're going to love this question. But when it comes to say BP, I know you get a lot of questions on when, if how are you going to buy VP, But I want to approach it from another angle and talk about synergies. A big part of your outperformance in the past couple of years has been synergies and weeding out those costs. At what point does BP become so cheap you just cannot avoid looking at them for those synergies, Alex.

You'll forgive me if I don't directly answer that question, but what I will say is our focus over the last few years has been to build fitness and strength for Shell that today people are asking the question because they see a fitter, stronger, more dynamic company. Anatomy is great. We want to be able to build flexibility. We've been able to bring our net debt down to essentially the lowest it has been excluding lises for over a decade. We've been able to outperform our peers in the sector on both TSR as well as just pure shareholder purer share performance, and we are generating free cash flow in a very robust and solid way. And so today we have options. At the same time, when we think about those options, the priority is to deliver that ten percent free cash flow per annum growth within our business that's immediately within our control, and of course we will keep an eye out for opportunities. But I have to say the bar is high, because if you're going to go for a big acquisition, one has to recognize that that can potentially describe.

You'll forgive me if I don't directly answer that question, but what I will say is our focus over the last few years has been to build fitness and strength for Shell that today people are asking the question because they see a fitter, stronger, more dynamic company. Anatomy is great. We want to be able to build flexibility. We've been able to bring our net debt down to essentially the lowest it has been excluding lises for over a decade. We've been able to outperform our peers in the sector on both TSR as well as just pure shareholder purer share performance, and we are generating free cash flow in a very robust and solid way. And so today we have options. At the same time, when we think about those options, the priority is to deliver that ten percent free cash flow per annum growth within our business that's immediately within our control, and of course we will keep an eye out for opportunities. But I have to say the bar is high, because if you're going to go for a big acquisition, one has to recognize that that can potentially describe.

And therefore we're very focused.

And therefore we're very focused.

On making sure if we do something in the inorganic space, that the bar is high and that we go in ready to do that.

On making sure if we do something in the inorganic space, that the bar is high and that we go in ready to do that.

And that also kind of felt like a no. I'm just saying from where I sit.

And that also kind of felt like a no. I'm just saying from where I sit.

Yeah, I would qualify Alex as it's finding the right time to make the moves and what is the long journey first?

Yeah, I would qualify Alex as it's finding the right time to make the moves and what is the long journey first?

Okay, but is BP like on the road to the moves or is BP like on the highway somewhere that you're not passing.

Okay, but is BP like on the road to the moves or is BP like on the highway somewhere that you're not passing.

What I would say is we are always looking at companies, both in Europe and beyond, and every company will have its time and at that point we will make a decision.

What I would say is we are always looking at companies, both in Europe and beyond, and every company will have its time and at that point we will make a decision.

All right, Well, I'll get you off the hook here and give Alex a break for a second. I do want to get your thoughts so on just a broader economic condition globally. And I have to ask you, of course about what's going on here in the US politically. And I know you don't have a lot of exposure to assets here, but obviously what we do here has ripple effects across the world. Have you actually had a chance to actually meet with anyone from the administration, including the President?

All right, Well, I'll get you off the hook here and give Alex a break for a second. I do want to get your thoughts so on just a broader economic condition globally. And I have to ask you, of course about what's going on here in the US politically. And I know you don't have a lot of exposure to assets here, but obviously what we do here has ripple effects across the world. Have you actually had a chance to actually meet with anyone from the administration, including the President?

So firstly, just.

So firstly, just.

A correction, So, our biggest capital employed globally is here in the US. We are the largest producer and operator in the Gulf of America. We are the largest off taker of US LNG of any company, so we have a very material presence, not to mention thirteen thousand staff that are very.

A correction, So, our biggest capital employed globally is here in the US. We are the largest producer and operator in the Gulf of America. We are the largest off taker of US LNG of any company, so we have a very material presence, not to mention thirteen thousand staff that are very.

Much the core of our company here.

Much the core of our company here.

I have had the opportunity over recent weeks to indeed meet many in the administration, including the privilege to meet the President. And what I would say is we are very encouraged and welcome the strong support for the energy sector, not something that has always been there in the US or beyond, and I do think the energy sector is a critical underpinning of any successful economy.

I have had the opportunity over recent weeks to indeed meet many in the administration, including the privilege to meet the President. And what I would say is we are very encouraged and welcome the strong support for the energy sector, not something that has always been there in the US or beyond, and I do think the energy sector is a critical underpinning of any successful economy.

Beyond that, what I would say is what is key for our sector.

Beyond that, what I would say is what is key for our sector.

For companies like ours is predictability in the investment climate and stability of the investment climate because many of our investments have payback periods usually above seven eight years, and so that is a critical part of being able to have the peace of mind to make the material investments that we need to be making.

For companies like ours is predictability in the investment climate and stability of the investment climate because many of our investments have payback periods usually above seven eight years, and so that is a critical part of being able to have the peace of mind to make the material investments that we need to be making.

Well before we let you go.

Well before we let you go.

If there is a piece deal between Ukraine and Russia, are you anticipating Russian gas flows to Europe and how are you seeing them?

If there is a piece deal between Ukraine and Russia, are you anticipating Russian gas flows to Europe and how are you seeing them?

Global flows here difficult to call where that ends up playing.

Global flows here difficult to call where that ends up playing.

I mean, what you find, of course is Russian gas to Europe has gone down from roughly forty percent of Europe's demand to just under ten percent, so potentially some.

I mean, what you find, of course is Russian gas to Europe has gone down from roughly forty percent of Europe's demand to just under ten percent, so potentially some.

Flows will occur.

Flows will occur.

What we are focused on is making sure that through our world leading trading capability that we have, that we are managing all these potential discontinuities that we are seeing in trade flows, and so we want to make sure that we.

What we are focused on is making sure that through our world leading trading capability that we have, that we are managing all these potential discontinuities that we are seeing in trade flows, and so we want to make sure that we.

Can deliver to our customers.

Can deliver to our customers.

How the situation in Russia evolves is anyone's guests, but we are preparing for multiple different scenarios so that we can honor those straight flows that need to be met.

How the situation in Russia evolves is anyone's guests, but we are preparing for multiple different scenarios so that we can honor those straight flows that need to be met.

Well, we really appreciate you taking time for us. I know it's been a long and busy day. While Swan there, he's the CEO of Shell. Down there in downtown Manhattan, on the floor of the New York Stock Exchange.

Well, we really appreciate you taking time for us. I know it's been a long and busy day. While Swan there, he's the CEO of Shell. Down there in downtown Manhattan, on the floor of the New York Stock Exchange.