Shell PLC (LSE:SHEL, NYSE:SHEL) has given investors more insight into its revised strategy, which, on the face of it, aims to increase shareholder returns alongside delivering lower emissions.
Shareholder distributions will rise to 40–50% of cash flow from operations, Shell said, with a continuing focus on buybacks plus a 4% hike in dividends.
It said capital spending would be between $20 billion and $22 billion per year from 2025 to 2028 – which is in line with the past three years – meanwhile, it is also targeting ‘structural’ cost-cutting of $5 billion to $7 billion over the next three years too.
Shell anticipates a 10% improvement in free cash flow per share, through to 2030.
Growth is targeted in Shell’s LNG unit, whilst it plans to maintain ‘liquids’ (i.e. oil and gas condensates) production at 1.4 million barrels per day until the end of the decade.
The group also said it is targeting growth in its ‘mobility, lubricants, and lower carbon’ businesses and exploring chemicals partnerships in the US and Europe.
“Shell will continue to deliver more value with less emissions, growing in areas where we have competitive strengths, and providing a compelling investment case for our shareholders, now, and into the future,” it said in the statement.