Royal Dutch Shell PLC (NYSE:RDS.A) boosted shareholder returns by lifting its dividend and kicking off a US$2bn share buyback programme for 2021.
Shell is to pay 24 US cents per share for its second-quarter interim dividend, up from 17.35 cents in the first quarter.
“The quality of Shell’s operational and financial delivery and strengthened balance sheet have given the board confidence to rebase the dividend,” said chief executive Ben van Beurden.
“Total shareholder distributions for 2021 are expected to be around the middle of the 20-30% range of cash flow from operations (CFFO) from the previous four quarters. Our progressive dividend policy to grow dividends per share by 4% annually, subject to board approval, remains unchanged."
It comes as the transitioning oil supermajor reported US$5.5bn of earnings (adjusted), with income attributable to shareholders of US$3.4bn.
Amid stronger crude oil pricing the group generated significant cash from operations, reported at US$14.2bn, during the quarter, while capex stood at US$1.6bn.
Shell meanwhile reduced debt to US$65.7bn, from US$71.3bn.