Shell will host its capital markets day next week and isn't expected to radically change its strategy. Its long-term hydrocarbon portfolio will be in focus and analysts expect its cost saving target to be increased. Analysts at RBC Capital Markets said that if the London-listed energy major was to make a "wild card" announcement, the selling of its chemicals portfolio is the most likely option. Below is a selection of analysts' comments:

Shell Likely to Stick to Strategy

1004 GMT - Shell's strong momentum since 2023 means that it is likely to continue with its current strategy, RBC Capital Markets analysts write ahead of the British energy major's capital markets day next week. Investors expect Shell to increase its 2025 cost-savings target to around $4 billion to $5 billion after it met its previous $2 billion to $3 billion target early, they write. Capital expenditure is also expected to move lower to around $21.5 billion for 2025 and $22 billion for 2026, they add. Meanwhile, investors will hope that investment on low-carbon assets will be maintained at a minimum, the analysts write. Shares trade up 1.1% at 27.05 pounds. (adam.whittaker@wsj.com)

Shell's Long-Term Hydrocarbon Portfolio to Be in Focus at Capital Markets Day

1021 GMT - Shell investors will want more visibility on the British oil major's long-term hydrocarbon production pipeline when it presents its updated strategy at its capital markets day next week, RBC Capital Markets analysts write. Shell has outlined plans to maintain hydrocarbon production at around 1.4 million barrels of oil a day through to 2030 but hasn't disclosed plans beyond this, the analysts write. The lack of long-term visibility detracts from Shell's investment case, they add. Investors will be looking for signals that Shell intends to acquire assets to supplement its portfolio, something that the analysts believe is likely given its limited exploration success in Namibia. Shares trade up 1.1% at 27.05 pounds.(adam.whittaker@wsj.com)

Shell Expected to Keep Shareholder Returns Framework at Capital Markets Day

1132 GMT - Shell is not expected to alter its shareholder returns policy at next week's capital markets day, RBC Capital Markets analysts write. The analysts do not anticipate a shift in Shell's shareholder payout ratio guide of 30% to 40% of cash flow from operations. The British oil major is expected to continue with its trend of 4% dividend growth per year with excess cash being returned to shareholders via buybacks, the analysts write. A preference for buybacks will also give Shell the flexibility to better utilize equity in future acquisitions, they add. Shares trade up 0.6% at 2,693.00 pence. (adam.whittaker@wsj.com)

Shell Selling Its Chemicals Division Could Be Its CMD 'Wild Card'

1213 GMT - Shell isn't expected to make major strategic changes at its capital markets day but if it were to announce a 'wild card' decision, the selling of its chemicals portfolio is the most likely option, RBC Capital Markets analysts write. The Wall Street Journal reported that the oil-and-gas company is exploring a sale of its chemicals assets in Europe and the U.S. While the chemicals market is challenging, recent deals show there is appetite among buyers, the analysts write. Selling the chemicals business could deliver material proceeds and simplify Shell's portfolio, they say. Given the strength of its balance sheet, it is expected all proceeds would be returned to shareholders, the analysts add. Shares trade up 0.6% at 2,693.00 pence. (adam.whittaker@wsj.com)

Shell Can Grow Upstream Production Through End of Decade

1504 GMT - Shell could increase upstream production to 3 million barrels of oil equivalent a day by 2029, Barclays analysts write ahead of the British oil majors capital markets day next week. The analysts estimate group production of 2.8 million BOE a day in 2024. Investors have questioned Shell's ability to grow production and therefore management will want to demonstrate its portfolio isn't in a long-run decline, the analysts write. Shell could grow production without increasing its capital expenditure budget above $25 billion a year for the first two to three years of the next strategic plan, they write. Shares rise 0.5% to 2,690.50 pence. (adam.whittaker@wsj.com)

Shell Expected to Maintain 2025 Buyback, Could Grow Dividend Per Share in 2026

1528 GMT - Shell is expected to maintain its share buyback at $14 billion in 2025 and could increase its dividend per share by 10% to 20% as early as 2026-27, Barclays analysts write ahead of the British energy major's capital markets day next week. An uptick in its dividend per share is achievable because Shell has been retiring an average of 7% of its shares per year for the past three years, the analysts write. This means that the total dividend amount can be kept roughly flat at around $9 billion, the analysts write. Shares rise 0.5% to 2,690.50 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

March 18, 2025 11:52 ET (15:52 GMT)

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