Shell reported adjusted earnings of $39.9 billion for the full-year 2022.
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British oil major Shell on Wednesday announced plans to boost returns to shareholders and keep oil output steady, as part of its strategy to simplify the group’s business and improve investor confidence.
Ahead of its Capital Markets Day conference in New York later in the day, Shell said it would increase shareholder distributions to 30% to 40% of cash flow from operations, up from 20% to 30% previously.
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This includes raising the dividend per share by an expected 15% from the second quarter and executing at least $5 billion of share buybacks in the second half of the year.
“Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition,” said Shell CEO Wael Sawan.
“We will invest in the models that work – those with the highest returns that play to our strengths,” added Sawan, who took office at the start of the year after serving as director of the company’s integrated gas, renewables and energy solutions.
Shell’s focus on performance and capital discipline comes as the company seeks to close what many see as the growing gap in valuations between European and U.S. oil majors. The British oil major reported a record annual profit of nearly $40 billion for 2022.
The firm on Wednesday announced capital spending will be reduced to $22 billion to $25 billion per year for 2024 and 2025, respectively.
Shares of Shell were up 1.5% on Wednesday. The firm’s London-listed stock price is marginally lower year-to-date.
‘A collision course’ with the Paris Agreement
Shell said it would maintain oil production at current levels through to the end of the decade as part of a bid to generate more cash from its oil division. It simultaneously reiterated its commitment to climate targets, saying it was making “good progress” toward becoming a net-zero business by 2050.
The company will also seek to grow its integrated gas business while maintaining leadership in the global liquefied natural gas market.
The burning of fossil fuels, such as oil, gas and coal, is the chief driver of the climate emergency. Shell’s decision to refrain from new oil output cuts drew criticism from activist shareholder group Follow This.
Mark van Baal, founder of Follow This, on Wednesday said Shell’s growth in fossil fuels puts the company “on a collision course” with the 2015 Paris Agreement, noting the landmark climate accord calls for a halving of carbon emissions by 2030.
“The new CEO Wael Sawan would not dare to grow Shell’s fossil fuel business if more institutional investors had voted in favour of the Follow This climate resolution requesting Paris-aligned targets,” he added.
At the Shell shareholder meeting last month, support for a Follow This resolution demanding tougher emission reduction targets by the end of the decade came in at 20%. “Shell still has to answer these 20%,” van Baal said.
The Shell annual general meeting was repeatedly disrupted by protesters last month, reflecting a palpable sense of frustration during the Big Oil proxy voting season.
The world’s leading climate scientists have previously warned that the fight to keep global heating under 1.5 degrees Celsius has reached “now or never” territory, saying last year that “any further delay in concerted global action will miss a brief and rapidly closing window to secure a liveable future.”
Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
FedEx electric delivery vehicle; via Workhorse.
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.