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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Energy

Shell expected to commit to more cash hand-outs

Another broker has predicted that Shell will make a commitment to hand more cash out to shareholders at its capital markets day on Wednesday.

JP Morgan predicts chief executive Wael Swan will raise the proportion the oil and gas giant pays out of cash flow from operations (CFFO) to between 30-40 from 20-30% currently at the 14 June gathering.

In total, JP Morgan expects an emphasis on premium total shareholder returns (TSR) with a 10% dividend step up, a base yield of 4.8% by 2025 and a total cumulative return over the next three years of 30% of the current market cap or around £46bn.

The US bank also expects Sawan to address issues such as its poor perceived operating efficiency and longer-term goals of oil and investment and longevity and its LNG plans.

Overweight is the investment view with a 2,950p price target.

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