Shell said today it plans to keep its liquids production stable through to 2030, having previously planned for a 1-2pc/yr decline through this decade. It said it has not abandoned that target, but instead has met it early.
Ahead of its capital markets day in New York later today, Shell outlined its intention to further grow its integrated gas business and maintain "leadership" in the global LNG market, as well as build "leading positions" in low-carbon fuels and electric vehicle (EV) charging. The company said it will continue to invest "in a disciplined manner" in the hydrogen and carbon capture and storage (CCS) sectors, and plans to invest up to $15bn in the 2023-25 period to support development of these.
Overall, however, it said it will spend less, and now sees capital expenditure at $22bn-25bn/yr in 2024 and 2025, compared with $23bn-$27bn previously planned.
In the downstream, Shell said it will repurpose its Energy and Chemicals Parks to supply low-carbon products to customers. As part of this, it plans to conduct a strategic review of its refining and chemicals assets on Bukom and Jurong Island in Singapore, while "high-grading" its European operations. It will continue to selectively invest in the power sector, focusing on markets "where trading activities and customer reach can help to deliver higher returns."
On its aim to become a net-zero business by 2050, Shell said it was targeting near-zero methane emissions by 2030, including the elimination of routine flaring from its upstream operations by 2025.
Shell promised to deliver more to its investors, with "an enhanced focus on performance and stronger capital and cost discipline" underpinning greater shareholder distributions of 30-40pc of operating cash flow throughout the oil price cycle, compared with 20-30pc previously. These will be through dividends and share buybacks. The company said it would raise its per share dividend by 15pc from the current quarter, which will be paid in September. It will begin new buybacks, amounting to at least $5bn, in the second half of this year.
"We are investing to provide the secure energy customers need today and for a long time to come, while transforming Shell to win in a low-carbon future," Shell chief executive Wael Sawan. "Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition."
