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Oil giant Royal Dutch Shell said it would increase payouts to shareholders on the back of an improving economic outlook.
Shell said that, subject to final board approval, it would increase shareholder distributions to within the range of 20-30% of cash flow from operations, starting at its second-quarter results announcement.
It pinned the decision on 'strong operational and financial delivery, combined with an improved macro-economic outlook'.
Crude prices have been staging a recovery as high coronavirus vaccination rates in some developed nations allow them to roll back lockdown restrictions.
Supply also is being constrained by a failure by large oil producing countries, known as OPEC+, to agree on increased output quotas.
Shell said that in the second quarter it expects to have further reduced its net debt, although the extent of the reduction would be moderated by working capital movements.
'In conjunction with the increased distributions, 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,' it asid.
2021 cash capex would remain below $22 billion.