At Shell’s AGM in London, CEO Peter Voser has defended the supermajor’s gas-first strategy, despite high oil prices contributing the vast majority to the company’s bottom line.
Shell is now producing more gas than oil in barrel of oil (boe) equivalent terms, but oil margins are still contributing to 80% of group-wide profit. Voser say’s Shell lead in GTL technology enables it to effectively capture oil profits with gas feedstock.
A US supply glut and dampened demand in the Eurozone has kept gas prices down, though Voser – speaking at Shell’s annual general meeting yesterday – expects prices to pick up as Asian power sectors increasingly switch from oil to gas feedstock.
The company’s board received a slap from investors as over 9% refused to voted again the pay packages for Voser and other top-level executives. Including abstentions, 11 per cent of shareholders failed to back Shell’s remuneration report.
Shareholder disgruntlement was voiced despite the company’s hugely successful year in which high oil prices drove profits up by 54% over 2010. The company accounted for 12% of all dividends paid by FTSE 100 listed companies last year.
Malcolm Brinded, who stepped down as head of exploration and production in April to make way for ex-Qatar country manager Andy Brown, has been awarded a €2.52m (£2m) severance payment.
Voser will be paid €11.7 million ($14.8 million) this year after share incentives vest, up from €5.2 million ($6.6 million) just two years ago.
Despite tension over pay Voser and his senior colleagues were re-elected with an overwhelming 99% of the vote.
The company also faced sustained questioning over its clean-up operation in the Niger delta and plans for deepwater drilling in Arctic waters.
