Oil company Shell has said it plans to increase its natural gas sales by at least 4% each year until 2030, as it doubles down on fossil fuels in a bid to boost profitability.
The company aims to raise its top line production, lower its spending, and grow its shareholder distributions to 40-50% of its cash flow from operations.
‘‘We want to become the world’s leading integrated gas and LNG business and the most customer-focused energy marketer and trader, while sustaining a material level of liquids production,” said Shell CEO Wael Sawan.
“Today we are raising the bar across our key financial targets, investing where we have competitive strengths and delivering more for our shareholders.”
The company has increased its structural cost reduction targets to a cumulative US$5-7 billion by the end of 2028. Its spending will be lowered to $20-22 billion each year for 2025 to 2028.
Shell also will halve its projected investment in low-carbon energy to 10% of its capital expenditure.
The company hopes to increase production in its Upstream and Integrated Gas arm by 1% per year to the end of the decade, “sustaining our 1.4 million barrels per day of liquids production to 2030 with increasingly lower carbon intensity”.
Shell saw its annual profit drop in 2024, with its earnings of US$23.72 billion below both its 2023 profit of $28.25 billion and LSEG estimates of $24.71 billion. The company has been seeking to boost its profitability since laying out targets in 2023.
Oil prices also sunk last year. Brent crude futures averaged US$80 per barrel, around $2 less than in 2023.
Shell’s (LSE: SHEL) share price closed at UK£2,760, up from its previous close at £2,725. Its market capitalisation is US$218 billion.
Related content
