THE HAGUE, The Netherlands, January 31, 2013 /PRNewswire/ --
In an update with investors today, Shell (NYSE:RDS.A)(NYSE:RDS.B) CEO Peter Voser said the company is delivering on its strategy and he reiterated growth plans while spelling out strategic priorities.
"With the first year of our 2012-2015 growth targets completed, Shell is on track for plans we set out in early 2012, despite headwinds last year," said Voser. "Shell is competitive and innovative. We are delivering a strategy that others can't easily repeat, with unique skills in technology and integration and a worldwide set of opportunities for new investment".
Although the economic outlook remains uncertain for some of Shell's key markets, Voser said the prospects for long-term growth in global energy demand remained unchanged, driven by rising world population and improving standards of living in developing countries.
"Meeting this demand growth with clean and affordable energy is a formidable challenge for our industry and it is a major opportunity for Shell," he said.
He confirmed Shell's growth agenda, which aims to deliver $175-$200 billion of total cash flow from operations for 2012-2015, a net capital spending programme of $120-$130 billion, and a competitive dividend for shareholders.
Shell's efforts to expand its pipeline of potential energy projects are paying off, said Voser. "Our drive to increase our options for future projects means that we are more constrained by limits on capital than by limits on opportunities," he said. "This allows us to prioritise the most attractive opportunities, and reconfigure or exit from less attractive ones."
Voser said Shell will continue to maintain its investment programme through the economic cycle. "We make long-term decisions on capital allocation and growth choices, and we look through short-term market volatility," he said. "As our cash flow momentum builds we expect to increase our dividends for shareholders in measured, affordable steps. There is more to come from Shell."
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