Shell will keep its oil output steady into 2030 ramp up its dividend and share buybacks as CEO Wael Sawan moved to regain investor confidence that wavered over its energy transition plan, Reuters reported.
In a new financial framework announced ahead of an investor conference in New York, Shell said it will increase overall shareholder distribution to 30% to 40% of cash flow from operations from 20% to 30% previously.
That includes a 15% dividend boost and an increase in the rate of its share buyback programme from the second quarter to $5 billion from $4 billion in recent quarters.
The financial framework is the linchpin of Sawan’s effort to boost Shell’s share performance relative to its U.S. peers after many investors shunned the British company even after it posted a record $40 billion profit last year.
The group has faced concerns that it was shifting away from oil and gas at a time of booming energy prices while returns from its growing renewables and low-carbon businesses remained poor.
