Note 6 of 35
Note 6 -
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
• Continued focus on Net debt reduction in upcycle • Divest for value • Invest for value Enhanced shareholder distributions 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 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
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Enhanced shareholder distributions 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 Balanced Capital Allocation Targeting AA credit metrics through the cycle Disciplined investment Cash capital expenditure (see Note 7) within $22-25 billion per annum for 2024 and 2025 (2022: $23-27 billion)
• Continued focus on Net debt reduction in upcycle • Divest for value • Invest for value • Includes inorganic capex
[A] Total shareholder distributions (dividends + share buybacks) based on cash generation, macro-outlook and balance sheet trajectory.
