Royal Dutch Shell Plc set out to woo disgruntled investors by raising its dividend and pledging to grow it steadily, just six months after slashing the payout.
Amid a painful year for Big Oil, the Anglo-Dutch energy giant offered investors some good news. It also reported a larger-than-expected profit for the third quarter, lower net debt and strong cash flow, even as most of its divisions continued to be battered by the coronavirus.
“The board is confident we can grow the dividend with 4% this year and with similar percentages in years to come,” Chief Executive Officer Ben van Beurden said in a Bloomberg TV interview. Shell is demonstrating that it’s “a compelling investment case,” he said.
Shares of the company rose 1.9% to 883 pence as of 8:55 a.m. in London, but are still down about 60% this year.