Shell Unveils Cost-Cutting Drive and Growth Plans Ahead of Capital Markets Day
Ahead of its capital markets day event, Shell announced plans to ramp up annual cost savings to between $5 billion and $7 billion (£3.9bn–£5.4bn) by the end of 2028, according to PA Media. This marks a significant increase from its previous target of $2 billion to $3 billion in savings by 2025.
The energy giant also said it would reduce capital spending to between $20 billion and $22 billion annually over the next three years.
Shell reaffirmed its commitment to boosting shareholder returns through a combination of share buybacks and dividend payouts.
Among other key targets, the FTSE 100 firm aims to grow production across its upstream and integrated gas divisions by 1% annually over the next five years. Additionally, it plans to increase liquefied natural gas (LNG) sales by 4% to 5% each year through to 2030.
Shell CEO’s £8.6m Pay Draws Criticism Amid Profit Decline and Climate Concerns
Shell chief executive Wael Sawan has come under fire after his pay package rose by 8.5% last year to £8.6 million — a figure branded “obscene” by environmental campaigners.
According to Shell’s annual report released this morning, Sawan’s total remuneration increased from £7.9 million in 2023, largely due to higher bonus payouts tied to long-term incentive schemes.
The pay rise comes despite a drop in the company’s adjusted earnings, which fell to $23.7 billion in 2024 from $28.25 billion the previous year. Nevertheless, Shell returned $8.7 billion to shareholders via dividends and spent $13.9 billion on share buybacks. The company also maintains its target of increasing dividends by 4% annually.
Sawan’s leadership has been criticized for reducing Shell’s carbon reduction commitments and cutting hundreds of jobs in its low-carbon division.
