(News Bulletin 247) – Shell promised on Wednesday to increase its dividend by 15%, but also to reduce its capital expenditure as part of a “balanced” approach to its strategy.
On the occasion of its investor day, the energy group showed the ambition to reduce its investments between 22 and 25 billion dollars per year during the 2024 and 2025 financial years.
It also plans to reduce its operational cost structure by two to three billion dollars annually by the end of 2025.
In a press release, Shell explains that it wants to pay greater attention to its performance, discipline and simplification.
The group nevertheless wishes to increase the remuneration of its shareholders to bring it to 30%-40% of its operating cash flow (CFFO), by increasing its dividend by 15% but also via the continuation of its share buybacks.
It thus plans to buy back at least five billion dollars of its own shares in the second half of the year.
Shell also promises to generate “more value”, with “fewer emissions”, reiterating its goal of achieving carbon neutrality by 2050.
An envelope of 10 to 15 billion euros will be earmarked for financing its development in low-emission energies, such as biofuels, hydrogen, electric vehicle charging and carbon capture.
On the stock market, the Shell share rose by around 0.6% at the start of the morning, in a London market up very slightly (+0.1%)
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