Shell’s management believes buybacks are an obvious move with the share price so low, Barclays said after attending an analyst sit down with the oil group’s chief executive and CFO.
Other takeaways were that the focus will be on improvements from within, with the first objective being to build the credibility of the management team.
Scope 3 emissions (external uses) will see a 6-8% reduction in net carbon intensity for 2023, and the final numbers should be within that range.
“A nice wave of projects” is coming on stream, according to Shell, starting with LNG Canada.
“Biggest opportunity right now is to unlock value opportunity in the company," management told the analysts.
Opportunities in a range of US$1-2bn opportunities will be looked at, but that is included within guidance.
“Management has more conviction on the internal prize rather than outside,” reported the bank.
"Overweight" with a 3800p/sh price target is Barclays' view.
Shares edged up to 2,479p.