- Oil and gas giant Royal Dutch Shell has announced a new cash allocation programme designed to cut debt and boost its dividend amid a reshaping of its business model.

The company plans to increase its dividend for the third quarter of 2020 by 4% to 16.65 cents per share.

It also plans to reduce its net debt position to $65 billion, down from $73.5 billion as of September 30, 2020.

Following this, Shell said it planned to target distribution of 20-30% of cash flow from operations to shareholders, boosted by dividend increases and share buybacks.

The company said the plans would boost its financial resilience as it remodels to become a net-zero energy emissions business by 2050 or sooner. It plans to reduce its refining portfolio from 14 sites to six, and focus more on hydrogen and biofuels.

In the third quarter, Shell recorded adjusted earnings of $955 million, down from nearly $4.8 billion in Q3 2019 amid lower demand and production in its oil and gas arms.

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