Dec 23, 2016
Shell and BP’s UK dividends surge on weaker pound
Royal Dutch Shell and BP have delivered a Christmas bonus worth almost £500m to UK shareholders because of the depreciation of the pound against the dollar since the vote to leave the EU. Both UK oil majors have made quarterly payouts this month that were a fifth higher than a year ago due to their practice of setting dividends in dollars and paying them in sterling. Shell and BP will have the biggest impact on UK investors' end-of-year performance because their total dividend payouts are the largest in the FTSE 100. According to data from Olivetree Financial, BP paid out an extra £250m in third-quarter dividends compared with last year because of the weaker pound, while Shell's B shares yielded an extra £230m. When added to slightly smaller currency benefits in the second quarter, the oil majors' dividends have been inflated by more than £800m in sterling terms since the Brexit vote in June, according to Olivetree. About 40 per cent of UK dividend payouts are set in dollars or euros. Once converted into sterling, the Shell dividend increased from 31.07p in the same period last year to 37.16p and BP's rose from 7.93p to 6.63p. Mr Jones said he was becoming more confident of the pair's ability to defend their dividends after heavy cost cuts and gradual recovery in oil prices.
Related companies
Make a complaint about Shell by viewing their customer service contacts.
