Royal Dutch Shell [LSE:RDSA] will reward its shareholders better now that the desired level of debt is in sight. This was announced by the energy giant on Wednesday.
“A strong cash flow supports additional payments to the shareholder in the second half of 2021,” Shell says.
Shell [LSE:RDSA] stressed the strong performance, both operational and financial, combined with the improved macroeconomic outlook. This led to a further reduction in debt in the second quarter.
Subject to the board’s approval, Shell wants to increase the distribution to shareholders to 20 to 30 percent of the operational free cash flow from the moment the figures for the second quarter are published. Then follow the details of the increase.
Shell [LSE:RDSA] wants to continue to strengthen the balance sheet and support its rating with the rating agencies. This year Shell will invest less than 22 billion dollars.
Shell [LSE:RDSA] expects to have pumped between 2,225 and 2,30 million barrels of oil per day in the second quarter. The company is also positive about the marketing margins and foresees that the chemical margins will have been in line with those in the first quarter.
On 22 July, Vara Research publishes the analyst consensus for the second quarter. A week later, on 29 July, Shell released the quarterly figures.