Shell Gives Hope for Dividend Boost Once Oil Rout Is Over
- Company should be in ‘strong position’ to raise distributions
- Finance chief cites potential to revive both dividend, buyback
Photographer: Andrey Rudakov/Bloomberg
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Royal Dutch Shell Plc said it will be well placed to boost shareholder payouts once the oil market recovers, as it sought to appease investors after last month’s surprise dividend cut.
The Anglo-Dutch major tore up the industry’s financial playbook when oil’s collapse forced it to slash payouts. For decades, Big Oil had used its hefty balance sheet to borrow money when needed and keep investors sweet until the next upward cycle. But 2020’s unprecedented market rout has seen several large players -- Exxon Mobil Corp. and Equinor ASA as well as Shell -- freeze or reduce dividends.