Shell Power Trader Quits Over Company’s Pivot Back to Oil

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Shell Plc’s pivot back to oil and gas was too much for one of the company’s power traders.After the company announced its plan to shift a larger proportion of its investment into fossil fuels in the coming years, Steffen Krutzinna decided to quit, according a post on LinkedIn. The change in strategy, announced by Chief Executive Officer Wael Sawan last week, showed Shell is putting short-term profits above social and environmental responsibilities, the trader wrote.

“I perceive that as pivotal shift in corporate values,” Krutzinna said in the post. “I don’t want to be part of that, so I’m out.”

In an effort to woo investors, Sawan boosted Shell’s dividend and laid out a vision for the company that he said would deliver higher returns. Core to that plan is the oil and gas business, which helped the company make record profits last year.

Even as it announced the shift, the company maintained its long-term climate pledges. “Shell reiterated its commitment to becoming a net-zero emissions energy business by 2050 – that has not changed at all,” a spokesperson said by email. “But we also made clear that we must bring our investors along with us on this journey, and that means ensuring we are clearly focused on capital discipline, enhanced performance and delivering shareholder value.”

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Shell’s strategy presentation didn’t give any clear plans for how the company would achieve that net-zero goal and noted that it could miss the target if the world as a whole doesn’t cut CO2 fast enough.

Krutzinna heads up algorithmic trading for Shell’s renewable power trading subsidiary Next Kraftwerke GmbH, which is based in Cologne, Germany. Power trading is one of the low-carbon business areas where executives think they can have an advantage, but his departure underscores the possibility that Shell may struggle to attract and retain talent in low-carbon businesses as it pivots back to fossil fuels.

For Krutzinna, the amount of investment Shell plans in planet-warming oil and gas, plus the “softened” net-zero target, justified his “heart-breaking” decision to quit, according to his post on LinkedIn. When reached by Bloomberg, Krutzinna declined to comment further.

“We are very sad that Steffen decided to leave the company,” Hendrik Samisch, CEO of Next Kraftwerke, said by email. “He is an excellent trader and quantitative analyst. We wish him all the best for his future.”