Shell benefits from sharp rise in oil prices: dividend goes up | Financial

The Anglo-Dutch company plans to increase its total distribution to shareholders, including dividend, to between 20 and 30 percent of cash flow from operating activities, as of the announcement of its quarterly results on July 29. Last year, Shell had cut its dividend for the first time in decades because of the impact of the corona crisis on the oil sector.

Reduce debt

At the same time, Shell is further reducing its debt. Capital expenditures for this year are below $22 billion. Total oil and gas production is expected to amount to the equivalent of up to 2.3 million barrels per day in the recent period.

Strong demand for oil has pushed prices to their highest levels in years. On Tuesday, the price of a barrel of American oil even briefly touched the highest level since 2014.

Earlier this year, Shell drew the short straw in the case that Milieudefensie brought against the oil and gas company. This resulted in a judgment imposed by the District Court of The Hague that requires Shell to emit 45% less CO2 within ten years.

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