Shell share price forecast amid headquarters move

on Nov 16, 2021
  • The Royal Dutch Shell share price rose by 2% in New York.
  • The company announced that it will shift its tax base to the UK.
  • The Dutch government is trying to keep the company in the country.

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The Royal Dutch Shell (LON: RDSB) share price will be in the spotlight on Tuesday as investors watch the company’s future. The stock is trading at 1,680p, where it has been in the past few days. Its American-traded shares rose by about 2% on Monday.

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Future of Shell

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On Monday, Shell released a statement that sent shockwaves in London and Netherlands. In the statement, the company said that it will end its dual structure and shift its tax base to London. The stock will still be traded in London, New York, and in Amsterdam. 

At the same time, the company said that it will drop the name Royal Dutch when the transition happens. London celebrated the move and said it was a sign that the country was open to business during Brexit.

On the other hand, Amsterdam complained about the move. And according to the Financial Times, the government has launched an eleventh-hour attempt to keep the company there. It is even thinking of abolishing a dividend tax that Shell cited in its announcement. 

Unilever, another anglo-dutch company has complained about the tax before. The tax restricts share buybacks to the RDSB shares because they are not subject to the levy.

Another hidden reason for Shell’s decision to move from Amsterdam was a recent court ruling in the country. A judge ordered the company to slash its carbon emissions by about 40% by 2030. Shell has appealed the decision and insisted that it is working to be carbon neutral in the next few months.

The announcement came at a time when the Shell share price has done relatively well helped by higher oil prices. It also came two weeks after Dan Loeb announced a stake in the company. It has advocated for breaking up the company to create shareholder value.

Shell share price forecast

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Shell share price

The RDSB share price has retreated recently as oil and gas prices have cooled down. The stock is trading at 1,680p, which is slightly below the year-to-date high of 1,827p. On the daily chart, the price is attempting to retest the key support level at 1,532p. This was the upper side of the ascending triangle pattern.

Therefore, the stock will likely retest this support and then continue its bullish trend. The stock could end the year at about 2,000p.

Dan Loeb Energy & Power Stock Market