Shell plc Fourth Quarter 2023 Interim Dividend
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Insights
The announcement of Shell plc's interim dividend for Q4 2023 represents a direct financial action that could influence investor sentiment and the company's stock liquidity. A dividend payment often signals a company's financial health and profitability to the market. In this case, the declared dividend of $0.344 per ordinary share and $0.688 per ADS indicates a distribution of profits back to shareholders, which can be a positive signal for investors seeking income through dividends. Moreover, the availability of the Dividend Reinvestment Program (DRIP) allows shareholders to convert their dividends into additional shares, potentially increasing long-term shareholder value and demonstrating a reinvestment opportunity within the company.
From a financial analysis perspective, the key dates outlined, including the ex-dividend date and payment date, are critical for investors. The ex-dividend date is essential because it determines the eligibility for the upcoming dividend—only shareholders who own the stock before this date will receive the dividend. This can result in increased trading volume before the date as investors may purchase shares to capture the dividend. The payment date is when the actual distribution of dividends occurs, which could influence the stock's price as the company's cash reserves decrease by the dividend payout amount.
Furthermore, the option to receive dividends in different currencies (US dollars, euros, or pounds sterling) provides flexibility for international investors and could impact the stock's attractiveness in different regions. Currency fluctuations can affect the actual value received by shareholders, which is why the announcement of the pound sterling and euro equivalent dividend payments will be closely watched.
Dividend announcements are a significant factor in investment decision-making and can affect market perceptions of a company's future performance. The consistency and size of Shell's dividend may be compared against industry norms to gauge its competitiveness within the energy sector. In the context of the broader market, Shell's dividend could be seen as an indicator of stability within a volatile industry, potentially attracting income-focused investors.
It is also important to consider the market's reaction to dividend announcements, as they can reflect expectations regarding future earnings and cash flow. A stable or increased dividend could be interpreted as a sign of confidence by the company's management in its financial stability and outlook. Conversely, a reduction in dividends might raise concerns about a company's future profitability or cash management strategies.
The dividend announcement also has implications for the company's capital structure and payout ratio. Analysts and investors will evaluate whether the declared dividends are sustainable in the long run, given the company's earnings, free cash flow and debt levels. In the energy sector, particularly, where companies are facing pressure to invest in sustainable energy solutions, the allocation of capital to dividends versus reinvestment in the business is a critical consideration.
From a taxation standpoint, the implications of Shell's dividend announcement are significant for shareholders. The tax treatment of dividends can vary greatly depending on the investor's residency and tax status. For international shareholders, the different currency options for receiving dividends may have tax implications, as currency conversion can affect the taxable amount.
Investors participating in the Dividend Reinvestment Program (DRIP) should be aware that reinvested dividends are typically subject to the same tax treatment as cash dividends. This means that even though the dividends are reinvested, they may still be considered taxable income. Shareholders should consult with tax advisors to understand the specific tax consequences of their dividend income and reinvestment, including any foreign tax credits or deductions they may be eligible for.
Moreover, the tax implications of holding shares through different mechanisms, such as American Depositary Shares (ADSs) or through Euroclear Nederland, can differ. Shareholders need to be mindful of the tax regulations that apply to their particular investment structure and should seek professional advice to optimize their tax position concerning dividend income.
London, February 1, 2024 − The Board of Shell plc (the “Company”) today announced an interim dividend in respect of the fourth quarter of 2023 of US
Details relating to the fourth quarter 2023 interim dividend
| Per ordinary share | Q4 2023 |
| Shell Shares (US$) | 0.344 |
Shareholders will be able to elect to receive their dividends in US dollars, euros or pounds sterling.
Absent any valid election to the contrary, persons holding their ordinary shares through Euroclear Nederland will receive their dividends in euros.
Absent any valid election to the contrary, shareholders (both holding in certificated and uncertificated form (CREST members)) and persons holding their shares through the Shell Corporate Nominee will receive their dividends in pounds sterling.
The pound sterling and euro equivalent dividend payments will be announced on March 11, 2024.
| Per ADS | Q4 2023 |
| Shell ADSs (US$) | 0.688 |
Cash dividends on American Depositary Shares (“ADSs”) will be paid, by default, in US dollars.
Each ADS represents two ordinary shares. ADSs are evidenced by an American Depositary Receipt (“ADR”) certificate. In many cases the terms ADR and ADS are used interchangeably.
Dividend timetable for the fourth quarter 2023 interim dividend
| Event | Date |
| Announcement date | February 1, 2024 |
| Ex- Dividend Date for ADSs | February 15, 2024 |
| Ex- Dividend Date for ordinary shares | February 15, 2024 |
| Record date | February 16, 2024 |
| Closing of currency election date (see Note below) | March 1, 2024 |
| Pound sterling and euro equivalents announcement date | March 11, 2024 |
| Payment date | March 25, 2024 |
Note
A different currency election date may apply to shareholders holding shares in a securities account with a bank or financial institution ultimately holding through Euroclear Nederland. This may also apply to other shareholders who do not hold their shares either directly on the Register of Members or in the corporate sponsored nominee arrangement. Shareholders can contact their broker, financial intermediary, bank or financial institution for the election deadline that applies.
Taxation - cash dividends
If you are uncertain as to the tax treatment of any dividends you should consult your tax advisor.
Dividend Reinvestment Programmes (“DRIP”)
The following organisations offer Dividend Reinvestment Plans (“DRIPs”) which enable the Company’s shareholders to elect to have their dividend payments used to purchase the Company’s shares:
- Equiniti Financial Services Limited (“EFSL”), for those holding shares (a) directly on the register as certificate holder or as CREST Member and (b) via the Shell Corporate Nominee;
- ABN-AMRO NV (“ABN”) for Financial Intermediaries holding shares via Euroclear Nederland;
- JPMorgan Chase Bank, N.A. (“JPM”) for holders of ADSs; and
- Other DRIPs may also be available from the intermediary through which investors hold their shares and ADSs.
These DRIP offerors provide their DRIPs fully on their account and not on behalf of the Company. Interested parties should contact the relevant DRIP offeror directly.
More information can be found at https://www.shell.com/investors/dividend-information
To be eligible to participate in the DRIPs for the next dividend, shareholders must make a valid dividend reinvestment election before the published date for the close of elections.
Enquiries
Media International: +44 207 934 5550
Media Americas: +1 832 337 4355
Cautionary Note
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
Forward-Looking Statements
This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, February 1, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.
Shell’s net carbon intensity
Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
Forward Looking Non-GAAP measures
This announcement may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.
The contents of websites referred to in this announcement do not form part of this announcement.
We may have used certain terms, such as resources, in this announcement that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Additional regulated information required to be disclosed under the laws of a Member State
FAQ
What is the amount of the interim dividend per ordinary share for Q4 2023?
When will the pound sterling and euro equivalent dividend payments be announced?
How can shareholders elect to receive their dividends?
What is the deadline for the closing of currency election date?
What are the Dividend Reinvestment Programmes (DRIPs) offered by Shell?
