Shell has overtaken Covid vaccine maker Astrazeneca to become the biggest company on the FTSE 100.
The oil giant was worth £132billion last night while the pharmaceuticals titan was valued at £131billion.
It marks a return to the top spot for Shell which was for years the biggest company on the Footsie before the pandemic struck.
Number one: Oil giant Shell was worth £132bn last night meaning it is once again became the biggest company on the FTSE 100
Astrazeneca, which developed a Covid jab with Oxford University, knocked Shell off its perch in May 2020 after strict lockdowns sent oil prices plummeting and plunged the energy company into crisis.
Consumer goods giant Unilever – whose brands include Domestos, Hellmann’s and Ben and Jerry’s – also spent some time as the biggest listed company in Britain.
But as the oil price bounced back following the rollout of vaccines and reopening of economies, so too have Shell’s fortunes.
Shell’s return to the top comes after the company ditched its dual-listed status, abandoning the Netherlands in favour of London.
Russ Mould, investment director at AJ Bell, said: ‘It may not be what environmental campaigners, politicians or the wider public want to hear, but oil prices are firm as energy demand rises and – for the moment at least – renewable and alternative forms of power are unable to take up the baseload slack.’
Crude prices have jumped 6 per cent in a week to $82.40 a barrel as fears have receded about the threat posed by the Omicron variant.
Brent oil tumbled as low as $19 in April 2020 when the harshest global lockdowns brought industry and travel to a standstill.
In response to the plunging prices, Shell was forced to kick off a huge restructuring programme, slash its prize dividend and cut jobs to stem eye-watering losses.
Its fortunes now come as it is fighting off a swipe from Third Point, an aggressive hedge fund led by Daniel Loeb, which has built up a substantial stake in the company and is urging it to separate its traditional oil business and renewables divisions.
Shell has refused, with boss Ben van Beurden insisting the only way it can hit its target to be net zero by 2050 is to use the proceeds from oil and gas to invest in green energy.
Lord Browne, the former head of BP, this week also called for a break up of big oil.
Writing in Time magazine, he said it would encourage investment and make the ‘true value’ of low-carbon businesses clearer.
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