ROYAL Dutch Shell has said it expects to return an extra $25 billion (£19bn) to shareholders over the next three years reflecting the benefit of the partial recovery in the crude price and cost cutting moves, writes Mark Williamson.

Directors of the Anglo-Dutch giant underlined confidence in the outlook for the firm by also announcing plans to cancel the scrip dividend from the fourth quarter.

Shell introduced the scrip dividend in response to the slump in oil prices that started in 2014 to save cash.

The move to cancel it comes after Shell grew third quarter profits 47 per cent, to $4.1bn.

Led by chief executive Ben van Beurden, Shell said it expects to be able to generate $25bn to $30bn free cash annually by 2020, if oil trades at $60 per barrel.

Brent crude sold for around $63.50/bbl yesterday. That compares with less than $30/bbl in the first quarter last year and $115/bbl in June 2014.

Shell noted it had cut operating costs by 20 per cent plus since 2014. The firm has shed around 1,000 North Sea jobs in that period.

Last November Shell said it would close its accounts centre in Glasgow, putting nearly 400 posts at risk.

Shell said yesterday it would complete share buybacks of at least $25bn from 2017 to 2020, subject to progress with debt reduction and recovery in oil prices, in line with plans announced when it bought BG for £47bn in 2015.

BP said last month it was planning to resume buy backs after it doubled third quarter profits to $1.9bn.