Royal Dutch Shell (RDSA) has increased its dividend per share to 16.65 US cents for the third quarter of this year as a sign of faith in the prospects for the business.
With the RDSA share price at an all-time low in the wake of the pandemic, the oil and gas giant emphasised confidence that it will be able to grow the business in tandem with rewarding shareholders:
“The Board has reviewed Shell’s recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.
As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations.”Chair of the Board of Royal Dutch Shell, Chad Holliday
The confidence comes as it posted adjusted earnings of $955m – far in excess of analyst expectations but way below the the $4.8bn posted for the comparable period last year.
Following the update, the RDSA share price is currently up by 2% at 918p.