Shell to greatly increase dividends and maintain steady oil production

While maintaining the same level of oil production through 2030, Shell will increase dividends and share buybacks.

This is a part of CEO Wael Sawan's efforts to restore investor faith in the company after it lost it due to its energy transition plan.

Shell stated that it will increase overall shareholder distribution to 30% to 40% of cash flow from operations from a 20% to 30% rate in a new financial framework released on Wednesday.

This includes increasing the dividend by 15% and starting the second quarter with a $5 billion share buyback program instead of the recent $4 billion.

In comparison to the planned $23 to $27 billion in capital expenditures in 2023, Shell predicted that capital spending would be reduced to a range of $22 to $25 billion per year for 2024 and 2025.

Sawan said in a statement that they were making investments to help provide the safe energy that customers need now and in the future, all the while transforming Shell to succeed in a low-carbon future.

Sawan added that their guiding principles would be performance, discipline, and simplification.

Shell reaffirmed its goal of becoming an emissions-free business by 2050.

The company declared that it would maintain its oil output until 2030 while expanding its natural gas operations to maintain its position as the largest LNG producer in the world.