Shell steps up its investments in clean energy

Royal Dutch Shell will return to paying pure cash dividends and step up its investment in cleaner energy as it turns a corner after more than two years of cost cuts and disposals prompted by weak oil prices.

Shell sought to strike a balance between reassuring investors it can increase returns in its core fossil fuel business during an “era of volatility” in oil prices while preparing to step up investments in renewables.

The scheme was introduced in early 2015 to help preserve cash after oil prices fell by more than half from over $100 a barrel and the company bought BG Group in a $54 billion deal.

In a strategy update, the company reiterated its plans to buy back $25 billion of shares between 2017 and 2020 in order to offset the dilutive effect of the scrip and its acquisition of BG Group.