Capital management Shell manages its businesses to deliver strong cash flows to sustain its strategy and for profitable growth. Management's current priorities for applying Shell's cash are: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balanced Capital Allocation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Enhanced shareholder distributions [A] Targeting total shareholder distributions of 30-40% of cash flow from operating activities through the cycle (2022: 20-30%) Around 4% annual growth in dividend per share, subject to Board approval (2022: 4%) | | | Strong balance sheet Targeting AA credit metrics through the cycle ○Continued focus on Net debt reduction in upcycle ○Divest for value ○Invest for value | | | | Disciplined investment Cash capital expenditure (see Note 7) within $22-25 billion per annum for 2024 and 2025 (2022: $23-27 billion) ○Includes inorganic capex | | | | | | | | | | | | | | |
[A] Total shareholder distributions (dividends + share buybacks) based on cash generation, macro-outlook and balance sheet trajectory.
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