March 27, 2025 [Storage Terminals Magazine]- Shell has presented its next strategic steps at Capital Markets Day 2025, reinforcing its commitment to value creation while maintaining a strong focus on performance, discipline, and simplification.

Chief executive officer Wael Sawan highlighted the company’s progress since its 2023 Capital Markets Day, stating: “We have made significant progress against all of the targets we set out. Thanks to the outstanding efforts of our people, we are transforming Shell to become simpler, more resilient, and more competitive. 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. Today we are raising the bar across our key financial targets, investing where we have competitive strengths, and delivering more for our shareholders.”

Key Announcements

Shell has outlined several key initiatives to drive shareholder value and operational efficiency, including:

• Enhanced Shareholder Distributions: Increasing shareholder distributions from 30-40 percent to 40-50 percent of cash flow from operations (CFFO) through the cycle, with a continued focus on share buybacks, while maintaining a four percent per annum progressive dividend policy.

• Structural Cost Reductions: Raising the structural cost reduction target from USD 2-3 billion by the end of 2025 to a cumulative USD 5-7 billion by the end of 2028, compared to 2022 levels.

• Disciplined Growth Investment: Committing to capital expenditures of USD 20-22 billion per year for 2025-2028, ensuring disciplined investments in areas of competitive strength.

• Free Cash Flow Growth: Aiming to grow free cash flow per share by more than 10 percent per year through to 2030.

• Climate Targets: Maintaining the company’s climate targets and ambition as set out in Shell’s Energy Transition Strategy 2024.

Strengthening Leadership in Key Areas

To deliver more value while reducing emissions, Shell will focus on:

• Liquefied Natural Gas (LNG): Reinforcing its leadership position by increasing LNG sales by four to five percent per year through to 2030.

• Upstream and Integrated Gas: Growing production by one percent per year to 2030 while sustaining 1.4 million barrels per day of liquids production with lower carbon intensity.

• Downstream and Renewables & Energy Solutions:

  • Expanding high-return mobility and lubricants businesses.

  • Leveraging competitive strengths to develop scalable, profitable lower-carbon platforms, allocating up to 10 percent of capital employed to this sector by 2030.

  • Unlocking additional value from Chemicals assets through strategic partnerships in the US, targeted portfolio high-grading, and selective closures in Europe to improve returns and reduce capital employed.

Shell remains focused on creating long-term value with lower emissions, strengthening its competitive advantages, and delivering a compelling investment case for shareholders now and in the future.

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