- July 7, 2021
- Posted by: Stratford Team
- Category: Business
(Bloomberg) —
Royal Dutch Shell Plc will boost returns to investors later this month, while still paying down debt, as its core businesses get stronger due to a recovery in energy demand and rising prices.
The Anglo-Dutch giant will raise total distributions to shareholders to between 20% and 30% of cash flow from its operations, starting when it announces second-quarter results on July 29, the company said in a statement on Wednesday. It didn’t specify whether they would take the form of dividends or share buybacks.
Underscoring the improvement in the operating environment for Big Oil, Shell said the higher returns will come as the company continues to reduce net debt. The company’s B shares rose 2.7% to 1,459.6 pence as of 8:08 a.m. in London.
The economic recovery from Covid-19 has transformed the fortunes of oil producers, from the international majors to U.S. shale drillers and OPEC members. U.S. crude futures hit a six-year high close to $77 a…
