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SHEL Shell Plc

2,894.00
-13.00 (-0.45%)
Last Updated: 15:29:32
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Shell Plc LSE:SHEL London Ordinary Share GB00BP6MXD84 ORD EUR0.07
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -13.00 -0.45% 2,894.00 2,893.50 2,894.00 2,919.50 2,885.00 2,907.00 4,134,816 15:29:32
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 316.62B 19.36B 2.9802 9.74 188.54B

Shell Offers Scrip Dividend

03/03/2015 6:00pm

Dow Jones News


Shell (LSE:SHEL)
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Royal Dutch Shell PLC on Tuesday gave shareholders the option of receiving a dividend via company stock, known as a scrip dividend, a move that other large oil companies have made as cash dries up during a period of low oil prices.

Shell reported a fourth-quarter profit of more than $4 billion but said that, after oil prices dropped by nearly 50% in 2014, it wouldn't be able to raise its dividend of 47 cents per ordinary from the previous quarter. Shell said the dividend price wasn't expected to change in the first quarter of 2015.

"Shell's financial framework and priorities are unchanged," the company said in a news release. "Scrip dividends offer shareholders the opportunity to receive shares as an alternative to cash dividends, and increase financial flexibility for the company in the down-cycle."

Shell had offered scrip dividends from 2010 until the program's cancellation in May 2014. This time, the dividend stock would be A shares, including those issued to investors who currently hold B shares, the company said.

Total SA also announced a scrip dividend after posting a more than $5 billion loss for the fourth quarter of 2014.

This move won't come as a huge surprise given management did little to rule this out and the recent steps adopted by Total...who now offer a discounted scrip, wrote Jefferies analyst Jason Gammel in a note that nonetheless called the move "disappointing" as it may prove dilutive for current shareholders.

-- Write to Michael Amon at Michael.Amon@wsj.com

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