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Shell (RDS-A) Dividend to Rise For First Time Since 2009 on Projects
February 2, 2012

 New York, February 2 (FinanceEnquiry.com) - A hike in Royal Dutch Shell Plc’s (NYSE: RDS-A) dividend this year is being planned by the company for the first time since 2009 as its new projects are generating more earnings. It is also planning net capital investment of $30 billion as it expects cash flow from operations in 2012-2015 to be almost 50 percent higher than in 2008-2011.

The CEO of Shell said that apart from 14 new projects started by the company in 2009-2011, including Qatar’s Pearl gas-to-liquids venture, it will be starting 60 other projects that will drive growth by uncapping potential resources of more than 20 billion barrels of oil equivalent. He added that the company’s dividends and investment levels will rise with its improving financial position. Shell reported that its net income dropped to $6.5 billion in the fourth quarter from $6.79 billion a year earlier, missing analysts’ expectations if one-time items and inventory changes are excluded. The company posted adjusted earnings of $4.8 billion against the median estimate of analysts of $5.2 billion.

Shell’s earnings report will be followed by BP’s report on Feb. 7 and Total SA on Feb. 10. Exxon Mobil had reported fourth-quarter sales that were less than analysts’ estimates earlier this week. Shell is planning to increase the dividend by 2.4 percent to 43 cents in the first quarter from the fourth quarter’s dividend of 42 cents.
 

 

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