THE former boss of UK oil major Shell has echoed concerns that the company's valuation gap between its London listing and a potential New York one is a "major issue".

Speaking at the Financial Times Global Commodity Summit in Switzerland yesterday, Ben van Beurden said that the company, the largest listed in London with a £118bn market cap, is "massively undervalued" and that the US would open up wider investment opportunities.

Shell's share price is sitting today at £2,847 per share, an alltime high for the stock driven by the oil price gains of recent years and a promise to continue to pursue profitable fossil fuel projects.

Van Beurden, who left the supermajor in 2022, added that the US has more favourable attitudes towards conventional energy companies, a factor that is "increasingly" becoming an issue for those listed in Europe.

His comments echo those made this week by Shell's current chief, Wael Sawan, who described the London listing as "undervalued".

However, any potential move would not likely come before the company has completed its so-called 'sprint' phase, which began in June last year and is scheduled to end next year, to improve competitiveness and profit-making.

(c) 2024 City A.M., source Newspaper