By Declining Profits Amid Market Challenges
Shell reported a 39% decline in fourth-quarter adjusted earnings, totaling $3.66 billion. The energy firm pointed to reduced oil and gas prices, weaker refining margins, and lower trading performance as key drivers of the decline.
Commitment to Shareholder Returns
Despite the earnings drop, Shell announced a $3.5 billion share buyback program, signaling continued prioritization of shareholder returns. Cash dividends remained steady at $0.358 per share for the quarter.
Annual Profit Reflects Market Softness
Shell’s full-year profit fell to $23.7 billion from $28.25 billion in 2023, driven by lower trading profits in LNG and reduced marketing activity.
Cash Flow and Debt Challenges
Operating cash flow reached $13.2 billion in Q4, supported by working capital inflows. However, higher tax and regulatory expenses weighed on overall performance. Net debt climbed to $38.8 billion, reflecting increased spending on share buybacks, dividends, and leases.
Future Strategy and Spending Plans
For 2024, Shell plans to spend $21 billion in capital expenditures, with potential reductions in 2025 spending on the horizon. More details are expected during the company’s Capital Markets Day.