Shell Updates Key Financial Targets

(RTTNews) - British oil and gas major Shell Plc (SHEL, SHEL.L) Tuesday said it is raising the bar across key financial targets after making significant progress.

Shell also said it expects to grow sales of liquefied natural gas or LNG by 4 percent to 5 percent per year through to 2030. Further, top line production across combined Upstream and Integrated Gas business would be increased by 1 percent per year to 2030. Shell will sustain its 1.4 million barrels per day of liquids production to 2030 with increasingly lower carbon intensity.

Ahead of its Capital Markets Day 2025, Shell announced that it will enhance shareholder distributions to 40-50 percent of cash flow from operations or CFFO through the cycle from from 30-40 percent. The company plans to continue to prioritise share buybacks, while maintaining a 4 percent per annum progressive dividend policy.

Further, the firm will increase the structural cost reduction target to a cumulative $5 billion to $7 billion by the end of 2028 from $2 billion to $3 billion by the end of 2025, compared to 2022.

The company also plans to invest for growth while maintaining capital discipline, with spend lowered to $20 billion to $22 billion per year for 2025-2028.

The targets also include plans to grow free cash flow or FCF per share by more than 10 percent per year through to 2030, and maintain the climate targets and ambition set out in Shell's Energy Transition Strategy 2024.

CEO Wael Sawan said, "We have made significant progress against all of the targets we set out at our Capital Markets Day in 2023. Thanks to the outstanding efforts of our people, we are transforming Shell to become simpler, more resilient and more competitive.... Today we are raising the bar across our key financial targets, investing where we have competitive strengths."