(Bloomberg) --Royal Dutch Shell Plc will boost returns to investors later this month as its core businesses get stronger due to a recovery in energy demand and rising prices.
The Anglo-Dutch giant will raise total distributions to shareholders to between 20% and 30% of cash flow from its operations, starting when it announces second quarter results on July 29, the company said in a statement on Wednesday.
Underscoring the improvement in the operating environment for Big Oil, Shell said the higher returns will come even as the company continues to reduce net debt, which has fallen below $65 billion.
The economic recovery from Covid-19 has transformed the fortunes of oil producers, from the international majors to U.S. shale drillers and OPEC members. U.S. crude futures hit a six-year high close to $77 a barrel on Wednesday, driven by rising demand and constrained supply.