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According to a report by The Times, which cited filings with the U.K.’s Financial Conduct Authority, Elliott’s position against Shell is the biggest short position disclosed against the oil major in nearly a decade.
NYSE-listed shares of British oil and gas major Shell PLC (SHEL) traded nearly 1% lower on Friday after activist investor Elliott Investment Management reportedly took a short position of £850 million ($1.1 billion) against the company.
According to a report by The Times, which cited filings with the U.K.’s Financial Conduct Authority, Elliott’s position against Shell is worth 0.5% of the company’s stock. It represents the biggest short position disclosed against the oil major in nearly a decade.
The short position comes after Elliott is believed to have acquired a near 5% stake in BP. The activist investor has been reportedly ramping up pressure on the company after its new strategy fell short of expectations.
Elliott viewed BP CEO Murray Auchincloss’s turnaround plan as lacking urgency and ambition.
The report added that Auchincloss and Chairman Helge Lund, one of the principal backers of the company’s now-criticized net-zero strategy, could come under pressure.
Meanwhile, it was also reported that Elliott had taken a short position against French oil major TotalEnergies.
On Stocktwits, retail sentiment surrounding Shell dipped into the ‘neutral’ territory (51/100) from ‘bullish’ a day ago.
Shell recently announced it would raise shareholder distributions to 40% to 50% of cash flow from operations from 30% to 40% while maintaining a 4% per annum progressive dividend policy.
The company also raised the cost reduction target from $2 billion to $3 billion by the end of 2025 to a cumulative $5 billion to $7 billion by the end of 2028, compared to 2022.
Shell's NYSE-listed shares have gained over 15% in 2025 and are up over 8% in the past 12 months.
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