Shell Boosts Shareholder Returns with Dividend Increase and $3.5 Billion Buyback Program

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In a strategic move to enhance shareholder value, Shell plc has announced a 4% increase in its quarterly dividend alongside a significant $3.5 billion share buyback program.

This announcement comes despite a decline in the company’s annual profits, reflecting its commitment to returning capital to shareholders even amidst challenging market conditions.

The new dividend will rise to $0.358 per share, marking the 13th consecutive quarter of buybacks exceeding $3 billion.

Shell’s Chief Executive Officer, Wael Sawan, expressed confidence in the company’s financial resilience, stating that “2024 was another year of strong financial performance across Shell,” despite facing lower earnings due to reduced oil prices and margins.

For the full year 2024, Shell reported a total cash flow from operations of $54.7 billion, with free cash flow reaching $40 billion, outpacing the previous year’s performance.

The company distributed $22.6 billion to shareholders, representing 41% of its cash flow from operations (CFFO).

This robust cash generation underscores Shell’s operational strength in a volatile pricing environment.

While adjusted earnings for the fourth quarter fell to $3.7 billion, down from $6 billion in the previous quarter, Shell achieved structural cost reductions of $3.1 billion since 2022, meeting its targets ahead of schedule.

The company aims to continue this trend with lower cash capital expenditures projected for 2025.The share buyback program is set to be completed before the announcement of Q1 2025 results on May 2, 2025.

This initiative is designed to reduce the company’s issued share capital and enhance shareholder value by canceling repurchased shares.

As Shell navigates through fluctuating oil prices and evolving market dynamics, it remains focused on delivering value while committing to sustainability goals.

The company plans to outline further strategies aimed at reducing emissions during its upcoming Capital Markets Day in March.

With these developments, Shell continues to position itself as a resilient player in the energy sector, balancing shareholder returns with strategic growth initiatives in an ever-changing landscape.

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