BAKU, Azerbaijan, March 25. Shell has outlined its next steps in the strategy to enhance value creation and drive growth while prioritizing performance, discipline, and simplification, Trend reports.
CEO Wael Sawan emphasized Shell’s progress since the 2023 Capital Markets Day, highlighting the company’s transformation into a simpler, more resilient, and competitive entity.
Shell has set ambitious targets for the coming years, including:
-
Increasing shareholder distributions to 40-50% of cash flow from operations (CFFO) across the cycle, continuing share buybacks, and maintaining a 4% per annum progressive dividend policy.
-
Raising the structural cost reduction target from $2-3 billion by 2025 to $5-7 billion by 2028, compared to 2022.
-
Reducing capital expenditures to $20-22 billion annually from 2025 to 2028 while investing for growth.
-
Growing free cash flow (FCF) per share by over 10% annually through 2030.
In line with its commitment to sustainability, Shell will maintain its climate goals outlined in its Energy Transition Strategy 2024.
Key strategic priorities include:
-
Reinforcing Shell’s leadership in LNG, aiming for 4-5% annual growth in sales through 2030.
-
Maintaining a stable liquids production of 1.4 million barrels per day until 2030, with reduced carbon intensity.
-
Expanding high-return businesses in Mobility, Lubricants, and Renewables & Energy Solutions.
-
Leveraging lower-carbon platforms, targeting 10% of capital employed by 2030.
-
Enhancing returns from its Chemicals business, with strategic partnerships and selective closures to improve performance in key regions.
Shell remains focused on delivering long-term value while reducing emissions, ensuring strong growth in areas where it holds competitive advantages.