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On May 6, 2022, a view of a Shell fuel station in Saint Petersburg, Russia, showcased the company’s prominent logo, representing British oil major Shell’s significant presence in the energy sector.
Shell has recently revealed its strategic plans focused on enhancing shareholder returns while simultaneously reducing expenditures as part of an aggressive push into liquified natural gas (LNG).
In a statement released ahead of its Capital Markets Day 2025 event, the company announced its intention to increase shareholder distributions to a range of 40-50% of cash flow from operations, up from the previous target of 30-40%. Shell aims to maintain progressive dividends, targeting a 4% annual increase and striving for a growth in free cash flow per share exceeding 10% annually through 2030.
Additionally, the oil giant has outlined a reduction in capital spending, with plans to limit investments to $20-22 billion annually until 2028. This contrasts with earlier projections for spending between $22-25 billion for the years 2024 and 2025 as addressed in 2023.
Shell also adjusted its structural cost reduction goal, aiming to lower it from a target of $2-3 billion to a cumulative $5-7 billion by the end of 2028, outlining a long-term strategic shift compared to plans from 2022.
As the leading trader of liquified natural gas worldwide, Shell projected a steady growth in output, predicting a 1% annual increase across its upstream and integrated gas operations through 2030. Moreover, LNG sales are anticipated to expand by 4-5% each year during this timeframe. The company plans to sustain its liquid production levels at approximately 1.4 million barrels per day through the end of the decade.
Looking to the future, Shell has committed to allocating 10% of its capital to low-carbon initiatives by 2030, demonstrating a focus on sustainable energy transitions.
CEO Wael Sawan emphasized the company’s ambitions, stating, “We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader while sustaining a material level of liquids production. Today we are raising the bar across our key financial targets, investing where we have competitive strengths, and delivering more for our shareholders.”
This breaking news story is being updated.
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