Activist investor Daniel Loeb has praised energy giant Royal Dutch Shell’s decision to move its headquarters from the Netherlands to the U.K. and to create a single shareholder class but maintained his calls for a breakup.

In a May 6 letter to investors, Loeb said that his hedge fund Third Point had added to his Shell stake after holding “constructive” discussions with management, board members, and other shareholders.

Loeb also praised the decision to move Shell’s headquarters, which he said “allows greater flexibility to modify its portfolio (either through asset sales or spin-offs) and allows for a more efficient return of capital, specifically via share repurchases.”

Third Point announced its $750 million stake in Shell in October 2021, saying that a different corporate structure would make the company more successful and that while Shell’s stock price is currently cheap, “proper management” could unlock future gains.

Specifically, the activist said that Shell would benefit from splitting its liquefied natural gas, renewables, and marketing business into a separate company, dividing it from its carbon-intensive legacy energy business which would include upstream, refining, and chemicals.

Loeb’s latest letter also identified Europe’s greater need for energy security as one of the fallouts from Russia’s war in Ukraine, saying this underscored the “strategic importance of reliable energy supplies” such as Shell’s liquid natural gas business.

Third Point Partners’ Fund also revealed that it had lost 11.5% during the first quarter, although it avoided more severe losses in April when its fund slipped 1% while the broader S&P 500 index dropped 8%.

Shares in Shell have fallen marginally since Loeb’s May 6 letter.