Shell Expects to Return $125 Billion or More to Shareholders in Next Five-Year Period

By Oliver Griffin

Royal Dutch Shell PLC (RDSB.LN) expects to return $125 billion or more to shareholders from 2021 to 2025 via dividends and buybacks, the Anglo-Dutch company said Tuesday.

The integrated energy giant raised its guidance for organic free cash flow in 2025 to $35 billion at an oil price of $60 a barrel.

Shell said the expected shareholder returns are an increase on the period ending in 2020, where shareholder returns are anticipated at around $90 billion.

The company said it expects to raise its dividend when it is closer to completing the current $25 billion share-buyback program. Shell maintained its quarterly dividend in the first quarter of the year at 47 cents a share.

The company will invest an average of $30 billion in capital expenditure a year during the period, capped at $32 billion a year. This includes minor acquisition spend of up to $1 billion but excludes major inorganic opportunities.

Shell said it has re-focused its strategic themes into three categories--core upstream, leading transition and emerging power--to shape its portfolio and drive capital allocation.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

June 04, 2019 02:39 ET (06:39 GMT)

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