Strategy update: Shell's new pitch to investors

Shell used its Q3 results call to provide a much-needed strategy update – the precursor to a more comprehensive Management Day next February. It was a significant update. We now have a much better feel for Shell’s near-term ‘new normal’ investor proposition. And we have a clearer sense of what the longer-term holds for Shell’s portfolio through the transition. Ben van Beurden summed up the investment case thus – “resilience, jam today, jam tomorrow”. The message seemed to resonate – shares were up 3.4% on the day (vs. BP +1.6%). Attention will now turn to Management Day 2021, next February, when Shell will need to add depth and colour. Investors will be seeking detailed projections, clear timeframes and hard targets on everything that was outlined last week, and more. And they will want to understand how it all maps to the carbon ambition.