Shell to increase shareholders returns as debt falls

Royal Dutch Shell said on Wednesday it would increase its planned shareholder returns beginning  the second quarter of this year after a sharp rise in oil and gas prices helped reduce its debt.

"In the second quarter, Shell expects to have further reduced its net debt, although the extent of the reduction will be moderated by working capital movements," it said in a trading statement before its quarterly results.

The company said it would increase distribution to shareholders in the form of share buybacks or dividends in the range of 20 percent to 30 percent of cash flow.

"Shell will retire its net debt milestone of $65 billion and will continue to target further strengthening of its balance sheet and AA credit metrics," said the statement.

They said that the 2021 cash capex will remain below US $22 billion.