Shell turn to normal dividend after three years of austerity

 

 

 

By Reuters Staff

LONDON
Petroleumworld 11 29 2017

Royal Dutch Shell on Tuesday said it will cancel an austerity dividend policy as the oil and gas company boosted its cash generation forecasts, drawing a line under three years of oil price turmoil.

The Anglo-Dutch company said it will abolish its scrip dividend, through which investors can opt to receive dividends in shares or cash, in the fourth quarter of 2017. The scrip dividend scheme was introduced in early 2015 following the sharp drop in oil prices.

In a strategy update, Shell also raised its cash flow outlook from $25 billion to $30 billion by 2020, assuming an oil price of $60 a barrel.

“We have also made significant progress with our divestment programme, allowing us to reduce net debt in that time,” Chief Executive Officer Ben van Beurden said in a statement.

Reporting by Ron Bousso, editing by Louise Heavens from Reuters.

reuters.com 11 28 2017

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