Shell announces next steps in strategy at capital markets day

Shell (SHEL) presented to investors at its capital markets day the next steps in the execution of its strategy. Shell announced that it will: enhance shareholder distributions from 30%-40% to 40%-50% of cash flow from operations through the cycle, continuing to prioritize share buybacks, while maintaining a 4% per annum progressive dividend policy; increase the structural cost reduction target from $2B-$3B by the end of 2025 to a cumulative $5B-$7B by the end of 2028, compared to 2022; invest for growth while maintaining capital discipline, with spend lowered to $20B-$22B per year for 2025-2028; grow free cash flow per share by more than 10% per year through to 2030; maintain the climate targets and ambition set out in Shell’s Energy Transition Strategy 2024. To deliver more value with less emissions Shell will: reinforce its position in liquefied natural gas by growing sales by 4%-5% per year through to 2030; grow top line production across combined upstream and integrated gas business by 1% per year to 2030, sustaining its 1.4M barrels per day of liquids production to 2030 with increasingly lower carbon intensity; drive cash flow resilience and higher returns in its downstream and renewables and energy solutions businesses.