British oil major, Shell on Tuesday announced plans to increase shareholder returns and cut spending while expanding its liquefied natural gas business.
Ahead of its Capital Markets Day 2025, Shell announced plans to increase shareholder distributions to 40-50% of cash flow from operations, up from the previous 30-40% range.
The company will maintain a 4% annual increase in dividends and aims to grow free cash flow per share by over 10% annually through 2030.
Shell, the world’s largest liquefied natural gas, said it will reduce annual spending to $20-22 billion through 2028, down from its previous $22-25 billion target for 2024 and 2025 set in 2023.
Additionally, the oil company revised its structural cost reduction goal, aiming for a cumulative $5-7 billion in cuts by the end of 2028, up from its initial $2-3 billion target for 2024, based on 2022 plans.
The oil major Shell plans to grow output across its upstream and integrated gas businesses by 1% annually through 2030.
It also aims to increase LNG sales by 4-5% per year over the same period while maintaining liquids production at 1.4 million barrels per day until the end of the decade.
“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. Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders,” CEO Wael Sawan said in a Tuesday statement.
The company aims to invest 10% of its capital in low-carbon businesses by 2030.
