The Rising Influence of Rising Affluence

[DewDiligence]

From Shell’s 4Q13 CC (apropos to the Steve Kolpits video):

http://s05.static-shell.com/content/dam/shell-new/local/corporate/corporate/downloads/quarterly-results/2013/q4/q4-2013-analyst-presentation-transcript.pdf

Our free cash flow has declined in recent quarters, as we move through a phase of higher acquisitions and fewer asset sales. That position should improve in 2014, as the pace of asset sales increases, and we see cash flow growth from new projects.

Acquisitions and divestments are distorting the core free cash flow picture, and these are short-term effects. The dividend increase we are expecting for the first quarter 2014 reflects the confidence we have in the growth in Shell’s free cash flow over time.