Shell to increase shareholder distributions

LNG giant Shell said it would boost its shareholder distributions beginning in the second quarter after a strong rise in oil and gas prices.

“As a result of strong operational and financial delivery, combined with an improved macro-economic outlook, Shell will move to the next phase of its capital allocation framework and, subject to final board approval, increase total shareholder distributions to within the range of 20-30% of CFFO,” it said on Wednesday.

Shell said in a statement ahead of its quarterly results it would determine the level of additional distributions with full visibility of the second-quarter financial results. 

In the quarter, Shell expects to have further reduced its net debt.

In conjunction with the increased distributions, Shell would retire its net debt milestone of $65 billion and would continue to target further strengthening of its balance sheet and AA credit metrics, the Hague-based firm said. 2021 cash capex would remain below $22 billion.

In addition, Shell expects LNG liquefaction volumes to reach between 7.1 and 7.7 million tonnes, reflecting “additional unplanned maintenance activities,” it said.

- Advertisements -
spot_img

Most Popular

Brazil’s GNA gets approval to launch first LNG power plant

Brazilian joint venture Gas Natural Acu has commissioned the first plant as part of its LNG-to-power project in the...

Stena adds LNG power barge to its portfolio

A unit of Sweden’s Stena said it has expanded its jetty-less LNG offering with an integrated power barge (IPB). The...

Canada’s FortisBC shrinks expansion plans for Tilbury LNG

Canadian utility FortisBC is scaling back expansion plans for its Tilbury LNG facility in British Columbia. The second expansion phase...

More News Like This

Crowley, Shell ink deal for new US LNG bunkering barge

Florida-based Crowley Maritime said it has teamed up with LNG giant Shell to build a new Jones Act-compliant liquefied...

Shell greenlights Timi gas project off Malaysia

LNG giant Shell has taken a final investment decision on its Timi gas development located 200 kilometers off the...

Hyundai Samho starts work on another Knutsen LNG newbuild

South Korea’s Hyundai Samho Heavy Industries has started building a new LNG carrier for Norwegian shipowner Knutsen. To mark the...

Shell’s LNG Canada raises roof on large storage tank

The Shell-led LNG Canada export project has raised the roof on the first large storage tank as construction work...