(Alliance News) - Shell PLC on Wednesday announced a planned USD5 billion share buyback amid a plan to reduce operating costs and spending.

The London-based oil major said it plans to buy back shares for at least USD5 billion in the second half of 2023, subject to board approval.

This is 25% larger than the ongoing USD4 billion share buyback programme that Shell had announced when it released its 2022 results in February. That programme will be completed before Shell releases its half-year results on July 27.

Further, Shell aims to reduce capital spending to between USD22 billion and USD25 billion per year for 2025, compared to USD22.60 billion in 2022. Cash capital spending was USD24.83 billion.

Annual operating costs are set to be reduced by USD2billion to USD3 billion by the end of 2025. In 2022, operating costs had widened 9.8% annually to USD39.48 billion from USD35.96 billion.

Meanwhile, Shell plans to reduce emissions from its operations by 2050 and invest USD10 billion to USD15 billion until 2025 to support the development of biofuels, hydrogen, electric vehicle charging and carbon storage and capture.

By Tom Budszus, Alliance News reporter

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