Shell's Shares Remain Undervalued As Shareholder Returns Set To Continue

Shell’s latest strategic plan to adapt to the energy transition and achieve its target of a net-zero portfolio by 2050 is similar to peers' but different in an important way. Like peers with similar targets and goals, Shell plans to expand its marketing retail operations and reduce oil production over time, but unlike peers, Shell has refrained from offering up an explicit renewable generation capacity target. Given the competitiveness of the space and the potential for lower returns as more firms enter the space, this is likely prudent.