Business

Shell Announces Major Financial Strategy Shift: Boosting Shareholder Returns and Cutting Costs

Shell's New Financial Strategy

Shell plc has unveiled a bold new financial strategy aimed at significantly increasing shareholder distributions. The company plans to raise the current 30-40% of cash flow from operations allocated to shareholders to an impressive 40-50%.

Commitment to Growth and Efficiency

In anticipation of Capital Markets Day 2025, Shell has committed to maintaining progressive dividends at 4% per year and boosting free cash flow per share by over 10% annually through 2030. Additionally, the oil giant is set to reduce its annual spending to $20-22 billion until 2028 and has elevated its structural cost reduction target from $2-3 billion by the end of 2025 to a cumulative $5-7 billion by the end of 2028.

A Vision for the Future

"Our goal is to lead as the world's premier integrated gas and LNG business and to be the most customer-focused energy marketer and trader, all while maintaining a significant level of liquids production. Today, we're setting higher benchmarks across our key financial targets, investing in areas where we excel, and delivering greater value to our shareholders," stated CEO Wael Sawan.