British oil major Shell (NYSE:SHEL) on Tuesday announced plans to increase shareholder returns and cut spend, as it doubles down on its liquified natural gas push.
In an announcement ahead of its Capital Markets Day 2025 event, the petroleum giant said it would bolster shareholder distributions to 40-50% of cash flow from operations, up from a 30-40% range previously. It intends to stick to progressive dividends of 4% per year and to grow free cash flow per share by more than a yearly 10% through to 2030.
The oil major also said it will lower its spending to $20-22 billion per year through to 2028, after targeting such costs in a $22-25 billion range for 2024 and 2025 back in 2023.
The oil company separately said it aims to grow its structural cost reduction target from $2-3 billion by the end of this year to a cumulative $5-7 billion by the end of the three-year stretch to the end of 2028, compared with 2022 plans.
The company intends to expend 10% of its capital employed in low-carbon businesses by 2030.
″We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production.” CEO Wael Sawan said in a Tuesday statement. “Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders.”
SHEL began the trading day ahead $1.84, or 2.6%, to $73.12
