The Hague – The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the third quarter of 2020 of US$ 0.1665 per A ordinary share (“A Share”) and B ordinary share (“B Share”).
Chair of the Board of Royal Dutch Shell, Chad Holliday commented: “The Board has reviewed Shell’s recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.
As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations.”
Details relating to the third quarter 2020 interim dividend
It is expected that cash dividends on the B Shares will be paid via the Dividend Access Mechanism and will have a UK source for UK and Dutch tax purposes.
|Per ordinary share||Q3 2020|
|RDS A Shares (US$)||0.1665
|RDS B Shares (US$)||0.1665
Cash dividends on A Shares will be paid, by default, in euros, although holders of A Shares will be able to elect to receive dividends in US dollars or pounds sterling.
Cash dividends on B Shares will be paid, by default, in pounds sterling, although holders of B Shares will be able to elect to receive dividends in US dollars or euros.
The pound sterling and euro equivalent dividend payments will be announced on December 3, 2020.
|Per ADS||Q3 2020|
|RDS A ADSs (US$)||0.333
|RDS B ADSs (US$)||0.333
Cash dividends on American Depository Shares (“ADSs”) will be paid, by default, in US dollars.
RDS A and B ADSs are listed on the New York Stock Exchange under the symbols RDS.A and RDS.B, respectively. Each ADS represents two ordinary shares, two A Shares in the case of RDS.A or two B Shares in the case of RDS.B. ADSs are evidenced by an American Depositary Receipt (ADR) certificate. In many cases the terms ADR and ADS are used interchangeably.
Shell has introduced option to receive dividend in US dollars and moved to full electronic settlement of its dividends
On December 18, 2019, Shell announced the introduction of US dollar as additional currency election and highlighted that its dividend will be settled with its shareholders fully electronically either in CREST or via interbank transfers. The announcement provided an overview of the actions needed by shareholders to ensure they continue to receive their dividends. Please refer to the announcement of December 18, 2019 for further information: https://www.shell.com/media/news-and-media-releases/2019/shell-introduces-option-to-receive-dividend-in-us-dollars.html
Dividend timetable for the third quarter 2020 interim dividend
|Announcement date||October 29, 2020|
|Ex-dividend date||November 12, 2020|
|Record date||November 13, 2020|
|Closing of currency election date (see Note below)||November 27, 2020|
|Pound sterling and euro equivalents announcement date||December 3, 2020|
|Payment date||December 16, 2020|
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
Cash dividends on A Shares will be subject to the deduction of Dutch dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their particular circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax.
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 operate Dividend Reinvestment Plans (“DRIPs”) which enable RDS shareholders to elect to have their dividend payments used to purchase RDS shares of the same class as those already held by them:
- 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 Nominee Service;
- ABN-AMRO NV (“ABN”) for Financial Intermediaries holding ‘A’ shares or ‘B’ shares via Euroclear Nederland:
- JP Morgan Chase Bank NA (“JPM”) for holders of ‘A’ and ‘B’ American Depository Shares; and
- Other DRIPs may also be available from the intermediary through which investors hold their shares.
Such organisations provide their DRIPs fully on their account and not on behalf of Royal Dutch Shell plc. Interested parties should contact DRIP Offerors directly.
More information can be found at https://www.shell.com/drip
To be eligible for the next dividend, shareholders must make a valid dividend reinvestment election before the published date for the close of elections.
Royal Dutch Shell plc