After cutting its dividend at the height of the pandemic last year, Royal Dutch Shell plc plans to give back to shareholders, with distributions set to rise on an improving commodity price outlook.

The Anglo-Dutch supermajor previewed its 2Q2021 results on Wednesday, ahead of reporting on July 29. Shareholders had endured a dividend cut in April 2020, the first time since World War II. There was better news to report on Wednesday.

“As a result of strong operational and financial delivery, combined with an improved macroeconomic outlook, Shell will move to the next phase of its capital allocation framework,” management said.

Once the board signs off, distributions are to increase to 20-30% of cash flow from operations. The better pricing also is helping to eliminate its...