Shell delivered the expected update on how to spend less and return more to shareholders. The 15% dividend increase and committed share buy-backs of at least $5bn in H2 lifted the FY23 yield to over 11%. Despite slashing the FY25 FCF expectation by $10bn compared to that at the 2019 CMD, Shell maintains an ambitious target to register 10% annual growth in FCF/share through 2025. Without big buy-backs and chunky divestments, this will be an onerous target to accomplish.
