"Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition," said Shell Chief Executive Officer Wael Sawan.
The energy transition refers to the shift away from fossil fuels with a focus on alternative and renewable energy resources. Shell joined the growing list of energy majors reporting bloated profits over the first three months of 2023.
At $4.9 billion, the company's vast natural gas segment accounted for the bulk of the profits over the first quarter. Behind that was exploration and production, as well as marketing.
Energy companies have focused more, however, on shareholder returns over exploration and production, the latter of which helped spur exponential growth in reserves such as U.S. shale.
Shell said Wednesday it was expecting a 5% increase in its dividend-per-share, offering at least $5 billion in share buybacks, while at the same time trimming its capital spending program for both 2024 and 2025.
Through 2035, meanwhile, Shell said it would invest around $40 billion on oil and gas production, according to The Guardian newspaper, and another $15 billion on low-carbon products.
Despite the spending plans for fossil fuels, Shell said it was emphasizing a low-carbon portfolio for the future, pointing to everything from electric vehicles to carbon capture and storage.
"We need to continue to create profitable business models that can be scaled at pace to truly impact the decarbonization of the global energy system," Sawan said.
The net carbon intensity of the energy products sold by Shell declined last year by 3.8% compared with 2016 levels, beating the average 2% for the global energy system, he said in a progress report on Shell's energy transition.
The Guardian, however, reported that Sawan told investors at the New York Stock Exchange that fossil fuels will remain highly relevant on the global market for the foreseeable future.
The company was sued in February by environmental law firm ClientEarth, which holds shares in Shell. Filed in the high court of England and Wales, the lawsuit charged the board with violating their own laws by failing to follow through on an energy strategy that would meet the benchmarks outlined in the Paris climate deal.
Related Links
All About Oil and Gas News at OilGasDaily.com
| Subscribe Free To Our Daily Newsletters |
| Subscribe Free To Our Daily Newsletters |
