British oil company Shell to significantly increase dividend and step up share buybacks

British oil and gas company Shell will significantly increase its dividend and step up its share buybacks. It plans to keep production stable through 2030, it said in a statement today. According to Reuters, CEO Wael Sawan is seeking to regain investor confidence, which was shaken by his energy transition plan. Shell is one of the world's largest energy companies.

Shell said it would increase total shareholder returns to 30 to 40 percent of its cash flow, up from the previous range of 20 to 30 percent. The plan includes a 15 percent increase in the dividend and an expansion of its share buyback programme to five billion dollars (nearly 111 billion dollars) from the second quarter, up from four billion USD in recent quarters.

Share buybacks help boost a company's share price by reducing the number of shares in circulation. Capital expenditure will fall to 22 to 25 billion dollars a year in 2024 and 2025, compared with the 23 to 27 billion dollars planned for this year, Shell said.

The company reiterated its target of becoming a net-zero emissions business by 2050. The group said it would keep oil production stable through 2030 and expand its natural gas business. It wants to defend its position as the world's largest player in liquefied natural gas (LNG).