Energy giant Shell plc said it was targeting 4-5% annual sales growth in liquefied natural gas in the next five years and increased its shareholder distribution policy with a focus on share buybacks while cutting its spending outlook.
Shell, which is the world's largest LNG trader, added that it would grow production by 1% per year in that time frame, keeping its oil output stable at 1.4 million barrels per day to 2030 with "increasingly lower carbon intensity".
In a statement ahead of its capital markets day, the company said it would enhance shareholder distributions to 40-50% of cash flow from operations from a prior target of 30-40%, while continuing to prioritise share buybacks and maintaining a 4% per annum progressive dividend policy.
Free cash flow per share was forecast by grow by more than 10% a year through to 2030.
The company added that it would lift its structural cost reduction target by the end of 2025 from $2-3bn to a cumulative $5-7bn by the end of 2028 from its 2022 baseline and lowered its spending outlook to a $20bn - $22bn range over the next three years.
Reporting by Frank Prenesti for Sharecast.com