Royal Dutch Shell introduced its scrip dividend programme in 2015 (Source: Getty)
Oliver Gill: Sunday 26 November 2017 6:14pm
Oil behemoth Royal Dutch Shell has been tipped to dish out more cash to investors as it scraps a programme of paying dividends in the form of shares. Analysts from UBS believe it is a case of “when not if” Shell restores a full cash dividend.
Shell chief executive Ben van Beurden is expected to signal the changes at a London management day on Tuesday.
The oil giant put a scrip dividend programme – where part of the firm’s dividend is paid by issuing new shares – in place in 2015 to reduce demands on cash as debt spiralled. Shell’s cash reserves were put under pressure by a combination of soft oil prices and a £47bn deal to buy gas producer BG.