Financial Times: Dividends set to rise at Shell: “The planned restructuring at Royal Dutch/Shell will lead to a jump in dividend payments for shareholders next year as the group moves from half-year to quarterly payments.”: “There had been pressure on Shell to streamline its complicated corporate structure following the mis-statement of its oil reserves this year.” (ShellNews.net) Posted 16 Nov 04

By Rebecca Bream

Published: November 15 2004

The planned restructuring at Royal Dutch/Shell will lead to a jump in dividend payments for shareholders next year as the group moves from half-year to quarterly payments.

The oil company announced last month that Shell Transport and Royal Dutch Petroleum, its UK and Dutch wings, would be merged into a single entity, if shareholders approved.

The new company, to be called Royal Dutch Shell, will be listed in London but will have its headquarters in the Netherlands. There had been pressure on Shell to streamline its complicated corporate structure following the mis-statement of its oil reserves this year.

It plans to pay dividends every quarter rather than every six months.

This change will lead to a bunching of payments next year, with five quarters' worth of dividends being paid out in just nine months.

Shell's last half-yearly payment will be paid next March, followed by three separate quarterly payments in June, September and December.

The higher pay-outs could make Shell more attractive as a short-term holding for investment funds.