Shell increases shareholder distributions and cuts spending

Shell raised its shareholder distribution policy to 40-50% from 30-40% on Tuesday, focusing on share buybacks. It also lowered its outlook for spending to $20-$22 billion through 2028.

The world's largest LNG trader has said that it wants to increase LNG sales by 4%-5% per year over the next five, while increasing its production by 1% each year, and keeping its oil output at 1.4m barrels per day.

Shell predicts that global demand for natural gas liquefied will increase by 60% by 2040. This is mainly due to the economic growth of Asia, artificial intelligence, and efforts to reduce emissions in heavy industry and transportation.

Shell sold 65,8 million tonnes of LNG in 2024.

Shell has stated that it will "unlock value from its strong portfolio of chemical assets" by exploring partnership and strategic opportunities in (the United States) as well as high-grading or selective closures in Europe.

Shell invested $21.1bn last year, out of an overall target range of $22-25bn. Shell announced on Tuesday that it aimed to spend 10% of its budget by the end decade on low-carbon enterprises.

This is the 13th quarter in a row that the oil major has purchased at least $3 billion worth of shares.

Shell increased its dividend to $0.36 per share by 4% at its January full-year results.

Shell announced on Tuesday that it would aim to grow its free cash flow per share by more than 10% annually until 2030. It will also continue to reduce costs, aiming to reach a total of $5-7 billion in savings from 2022 to the end of 2028.

(source: Reuters)