Shell to Cut Costs, Scale Back Clean Energy

Shell has announced plans to increase shareholder returns and reduce spending, focusing on liquefied natural gas (LNG) while scaling back on clean energy investments. The company aims to raise shareholder distributions to 40-50% of cash flow from operations and reduce annual capital expenditure to $20-22 billion through 2028. Shell also targets structural cost reductions of $5-7 billion annually by 2028, which is an increase from previously set goals. These strategic shifts come amid criticism from environmental groups and coincide with a pay raise for CEO Wael Sawan to £8.6 million, sparking backlash from climate activists. The company maintains that it will allocate 10% of its capital to low-carbon businesses by 2030, despite criticism for diluting its climate commitments. Shell's renewed strategy is intended to close the valuation gap with US competitors and boost shareholder confidence.