Bloomberg
Shell to Boost Shareholder Returns as Business Gets Stronger
By Laura Hurst: 7 July 2021, 07:15 BST Updated on 7 July 2021, 08:08 BST
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Energy giant will distribute 20-30% of operational cash flow
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Company to further reduce its net debt, keep lid on capex
Royal Dutch Shell Plc will boost returns to investors later this month, while still paying down debt, as its core businesses get stronger due to a recovery in energy demand and rising prices.
The Anglo-Dutch giant will raise total distributions to shareholders to between 20% and 30% of cash flow from its operations, starting when it announces second-quarter results on July 29, the company said in a statement on Wednesday. It didn’t specify whether they would take the form of dividends or share buybacks.
Underscoring the improvement in the operating environment for Big Oil, Shell said the higher returns will come as the company continues to reduce net debt. The company’s B shares rose 2.7% to 1,459.6 pence as of 8:08 a.m. in London.
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