Shell noncommittal on share buybacks as spending rises to boost output |
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Thu, 01 Feb 2007 11:17
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LONDON (AFX) - Royal Dutch Shell PLC declined to commit on plans to further repurchase shares as the Anglo-Dutch oil group spends heavily on its upstream business in an attempt to bolster output in the coming years.Peter Voser, the chief finance officer, told reporters in a conference call the group will assess the current market conditions, along with its organic investment plans, before deciding whether to proceed with the share buyback.He said he would prefer to reward shareholders with increased dividends 'rather than buying back shares'.'Our policy is to maintain a very competitive shareholder return. That policy has not changed,' he said.Shell has been actively buying back shares over the past two years as its surplus cash piles up amid the oil price boom.It repurchased 8.2 bln usd of shares in 2006, on top of the 5 bln usd it bought back in 2005.Shell has upgraded its capital spending for 2007 to 22-23 bln usd from its original guidance of 21 bln usd.In 2006, the capex hit 21 bln usd, above its guidance of 19 bln usd.Shell is hoping to bring volumes for 2007 to around 3.3-3.5 mln boepd, as against 3.473 mln in 2006 and a reduction from its original goal of 3.5-3.8 mln boepd. It plans to grow output modestly to the end of the decade.Malcolm Brinded, head of the group's exploration and production business, said output should grow by about 1-2 pct over the next 2-3 years.Around 190,000 barrels of oil equivalent per day remained 'shut in' in Nigeria due to the escalating security risk in the country, he said.monicca.egoy@thomson.commbe/nesCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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