Shell's updated strategy was in line with expectations as its management team announced higher targets rather than a major strategic reset. The update will reward shareholders and reflects the oil major's commitment to operational improvement and value creation. Shell will provide further detail of the strategy later Tuesday. Below is a selection of analysts' comments:

Shell Outlines Progress With Upbeat Margin, Returns Outlook

0846 GMT - Shell delivered an overall positive update on its capital markets day, with the new management setting further progress rather than a major shake up, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani say in a note. The company has set a better-than-expected profit margin outlook with improved cost reductions, they say. Shell's guidance for capital expenditure of between $20 billion and $22 billion a year from 2025 until 2028 came at the midpoint of the market consensus, the analysts say. The company has set increased return to shareholders, with a preference for share buybacks and kept its dividend growth policy, they say. "Overall, the update screens well, and we'd put this in the 'boring but good' category," they add. Shares are up 1.95%. (michael.susin@wsj.com)

Shell's Update Validates Market Expectations

0919 GMT - Shell's capital markets day supports many of the market expectations regarding returns to shareholders, reduction on capital expenditure and increased growth efforts, Jefferies' analyst Giacomo Romeo and equity associate Kai Ye Loh say in a note. The company's decision to focus shareholder distributions on buybacks, rather than dividends, is consistent with recent comments from management, they say. However, this could intensify the debate regarding the competitiveness of Shell's dividend yield, they add. The capex guidance of between $20 billion and $22 billion for the 2025-28 period represents a reduction from the previous guidance, while operating expenditure is also aimed to slow, they add. (michael.susin@wsj.com)

Shell's Updated Strategy to Reward Shareholders

1025 GMT - Shell's updated strategy shows its commitment to value creation, free-cash-flow growth and operational improvement, global energy and materials analyst at Quilter Cheviot Maurizio Carulli writes. With volatile oil prices and geopolitical uncertainty, this is the correct strategy, Carulli adds. Exploring partnership opportunities in its U.S. chemicals division also shows a clearer focus on efficiency and returns, he writes. Shares trade up 1.9% at 2,776.00 pence. (adam.whittaker@wsj.com)

Shell's Attractiveness Enhanced by Updated Strategy

1037 GMT - Shell's updated strategy of cutting costs and increasing shareholder returns will make it more attractive to investors, AJ Bell investment director Russ Mould writes. The update could widen the oil major's valuation gap with British rival BP, he says. Oil and gas assets remain energy firms' profit engines and increasing production will allow Shell to make more money today rather than wait for future profits from energy-transition assets, Mould adds. Shares trade up 1.9% at 2,776.00 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

March 25, 2025 07:01 ET (11:01 GMT)

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