ROYAL DUTCH Shell, Europe’s biggest oil company, expects to raise its dividend this year for the first time since 2009, as new projects generate more cash.
Shell plans net capital investment of $30 billion (€22.8 billion), with cashflow from operations in 2012-2015 expected to be as much as 50 per cent higher than in the 2008-2011 period.
Chief executive Peter Voser said growth would be driven by more than 60 new projects, unlocking potential resources of more than 20 billion barrels of oil equivalent.
That’s on top of 14 projects started in 2009-2011, including Qatar’s Pearl gas-to-liquids venture.
“Our improving financial position creates an opportunity to increase both our dividends and investment levels,” Mr Voser said in a statement.
Net income fell to $6.5 billion in the fourth quarter from $6.79 billion a year earlier, The Hague-based Shell said.
Excluding one-time items and inventory changes, profit missed analysts’ estimates.
The Anglo-Dutch group plans to increase the dividend by 2.4 per cent to 43 cents in the first quarter from 42 cents announced in the fourth quarter. – (Bloomberg)
