Shell Plc Targets Higher Shareholder Distributions, 15% Increase In Dividend

(RTTNews) - Shell plc (SHEL) said the company plans to deliver increased shareholder returns through a balanced energy transition, which reflects the Group's balanced approach as it operationalises its Powering Progress strategy. Shell now targets higher shareholder distributions of 30-40% of cash flow from operations through the cycle, 15% increase in dividend per share effective second quarter 2023, compared with 20-30% previously, through a combination of dividends and share buybacks. The Group will raise the dividend per share by an expected 15%, effective from the second quarter 2023 interim dividend, payable in September, and commence share buybacks of at least $5 billion for the second half of 2023.

Shell plc stated that capital spending has been reduced to $22-25 billion per year for 2024 and 2025. Annual operating cost has been structurally reduced by $2-3 billion by end 2025.

Shell said it will continue to invest in providing secure supplies of energy, while actively working to reduce carbon emissions. The Group will aim to achieve near-zero methane emissions by 2030 and to eliminate routine flaring from its Upstream operations by 2025. It also plans to invest $10-15 billion across 2023 to 2025 to support the development of low-carbon energy solutions. The Group also reiterated commitment to climate targets, including net-zero emissions by 2050.