Trending: Shell Bumps Shareholder Returns, Commits to Oil Production

0955 GMT - Shell is among the most mentioned companies across news items over the past 12 hours, according to Factiva data, after the energy major said it will increase shareholder distribution while deepening its commitment to the oil-and-gas business. In an update ahead of its Capital Markets Day, the company said it will increase shareholder distribution to 30%-40% of cash flow from operations through the cycle, from 20%-30% previously, with a 15% increase in dividend a share effective from the second quarter. RBC Capital Markets had expected a 20% bump, however the Canadian bank noted the move might be a re-basement with potentially further increases to come. "With buybacks year to date and the guidance for second half of 2023 [of "at least $5 billion"], Shell should repurchase around 6%-7% of its shares this year, providing room to increase the dividend further," RBC said. Shell also said it will cut spending, keep its oil production steady and scale back on less-profitable businesses. "We will invest in the models that work-those with the highest returns that play to our strengths," Chief Executive Wael Sawan said. Dow Jones & Co. owns Factiva. (christian.moess@wsj.com)

(END) Dow Jones Newswires

June 14, 2023 06:10 ET (10:10 GMT)

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