Shell have announced they will be appointing Wael Sawan, head of the group’s integrated gas and renewables division, as their new CEO signally a possible greater focus on renewable energy and clean technology.

Shell have come under pressure from all angles during the cost if living crisis as they enjoy record profits provided by higher energy prices.

Many see this as profit at being earned by Shell at the expense of households facing soaring energy bills. To some extent this is true, but if these profits are to be invested into developing secure renewable sources of power for the future, it will lessen the criticism of the company. 

Indeed, Shell have been investing in clean technology for some years but it is not yet recognised clearly in their earnings reports and raises question about the seriousness of their commitments to green energy.

“Ben van Beurden has been at Shell’s helm for almost a decade, so to that end the news of his resignation shouldn’t come as too much of a shock. It’s natural, and arguably right, that leadership gets a fresh pair of eyes at about this time. However, the real news is that it’s Wael Sawan, head of the group’s integrated gas and renewables division, who will be taking the wheel,” said Sophie Lund-Yates, Lead Equity Analyst at Hargreaves Lansdown. 

“For a group whose renewable strategy has been somewhat vague, though grand sounding, this is a clear marker that Shell intends to change this. Change won’t happen overnight, but it’s reasonable to think that at least tweaks to the existing renewable strategy could be on the cards.”

Wael is certainly making the right sounds in his first comments as CEO by heavily pointing to energy transition and clean energy.

“I’m looking forward to channelling the pioneering spirit and passion of our incredible people to rise to the immense challenges, and grasp the opportunities presented by the energy transition. We will be disciplined and value focused, as we work with our customers and partners to deliver the reliable, affordable and cleaner energy the world needs,” Wael said.

Hilton Foods previously made the strategic decision to position themselves in the vegan and vegetarian markets are reaping the benefits.

Hilton Foods saw vegan and vegetarian volumes grow 40% per annum in the 28 weeks to 17 July 2022 over a three year period total group revenue rose 20.4% to £2,038.7m.

The higher sales volumes were enough to fend of a 30bps drop in operating margin to 2.0% as EBITDA grew 5.7% to £66.6m.

However, the issue for Hilton Foods was not the prior year, but how rising prices would impact profit going forward.

Hilton also warned volumes could suffer as a result of the cost of living crisis causing Hilton Food shares to give up a third of their value in early trade on Thursday.

Food Technology

Hilton Foods noted strong growth in their New Zealand markets as well as the rollout of a prototype food park in Sweden.

Hilton continues to focus on protein markets and are investing in UK cultured meat technology ventures in Cellular Agriculture Ltd.

“In the first half of the year Hilton has further strengthened its position as the international protein partner of choice. We have continued to focus on our strategy of diversification and differentiation, driving a further increase in volumes, sales and operating profit,” said Hilton Foods Chief Executive, Philip Heffer.

“At a time when inflationary headwinds have become more pronounced, we have made further progress in broadening and deepening our protein offer, while expanding our footprint across international markets. At the same time, we have made ongoing investment to ensure we lead in technology and automation, with sustainability central to everything we do.”

UK affordable homebuilder MJ Gleeson has announced a solid set of results for the year to 30th June with profit before tax surging 33% as the company enjoyed record revenue for the period.

Revene rose 29.4% to £373.4m while completions hit 2000, up from 1,812 in the year prior.

MJ Gleeson were the beneficiary of higher average selling prices which rose 14.7% to £167,300, a trend observed across all housebuilders, including Redrow in their half year results yesterday.

The strong performance during the period has given the broad confidence to increase their dividend by 20% to 18p for the year.

“This is another excellent performance which reflects not only the strong operational capability of our business but also the continuing structural under-supply of affordable homes for first time buyers on low incomes,” said Dermot Gleeson, MJ Gleeson Chairman.

“As well as being affordable, our high-quality homes are also very energy efficient, costing significantly less to run than most houses in the UK, particularly in the rented sector. As a result, our homes are much sought after, and demand remains resilient.” 

“Gleeson Land’s market remained robust throughout the year and the business delivered a strong result. Demand in the South of England for quality sites with sustainable and implementable residential planning permission remains strong and the division is well-placed to drive further sustainable growth.”