Royal Dutch Shell Plc plans to shower its investors in money, pledging returns of $125 billion between 2021 and 2025 — twice as much as a decade earlier.
The oil and gas major says it can pull off this feat with crude at $60 a barrel and only a small increase in capital spending, an aggressive move to keep shareholders on its side while it weathers a disruptive transition to lower-carbon energy. The Anglo-Dutch company has already sought to stand out from some of its peers, who are boosting spending to get more barrels of oil and gas.
“We want to position the company for the future of energy,” Chief Executive Officer Ben van Beurden said in a Bloomberg Television interview. “The future will involve oil and gas, by the way. But it will also be a future where much more of the dynamics of the market are dictated by the customer.” Shell expects new projects to generate a torrent of cash — as much as $35 billion a year by 2025 — that it can use to enormously boost distributions to investors as dividends and buybacks, it said in a statement.