Shell has confirmed shareholders will be able to take hefty dividends in euros and pounds, alongside dollars, establishing the rate of return for its record second quarter performance this year.
Shareholders will be entitled to a dividend of €0.2499 or 21.57p per share as an alternative to the $0.25 per share dividend announced on July 28 with its results.
Following the energy giant’s move to London, dividends paid to shareholders on their ordinary shares will not attract the Dutch dividend withholding tax.
The pay-out to shareholders follows Shell posting massive profits of $11.5bn for the second quarter, powered by soaring commodity prices in an increasingly turbulent economic environment.
Also Read: Why You Really Need a Shareholders’ Agreement for Your Start-Up
The FTSE 100 company subsequently announced a $6bn share buyback programme, which expected to be completed by the third quarter results announcement later this year.
The past 12 months have been very eventful for the energy giant.
Alongside its rebounding profits, the company ditched its Dutch base and conceded its ‘Royal Dutch’ label and moved its headquarters to the UK.
It has also fought off activist pressure from Follow This to secure shareholder approval for its climate change plans.
Shell also faced mass protests at its latest annual general meeting in London, when activists stormed the stage and put proceedings on hold for several hours.
The company will be hit by the Energy Profits Levy, brought in by former Chancellor Rishi Sunak.
Also Read: EU Cuts Growth Forecast as Inflation Rises
This is a 25 per cent additional tax on the profits of North Sea oil and gas operators such as Shell to help fund a £15bn package to tame household energy bills.
The new tax will be applied to income generated after May 26, and it will have a negative impact of around $400m on the deferred tax position currently recognised in Shell’s balance sheet.
This article was culled from cityam.com
