From Morningstar:

Energy giant Shell PLC (SHEL) saw a significant drop in profit and revenue in the 4th quarter and for the whole of 2023, citing lower oil and gas prices. Despite the decrease, the company announced a new share buyback program and higher dividend, causing shares to rise. Pre-tax profit fell from $16.44 billion to $1.64 billion in Q4 of 2023. Total revenue also dropped 21% to $80.13 billion from $101.20 billion.

In the entire year of 2023, pre-tax profit fell nearly 50% to $32.63 billion from $64.82 billion in 2022. Total revenue dropped 16% to $323.18 billion from $386.20 billion.

Shell also announced it completed a $3.5 billion share buyback and is initiating a new $3.5 billion share buyback program. Despite the drop in profit, the company raised its quarterly dividend per share to 34.40 cents from 28.75 cents the year prior, bringing the total dividend for 2023 to $1.29, up 25% from $1.04 in 2022.

Shell said the worsened results in 2023 were due to lower realized oil and gas prices, lower volumes, and lower refining margins. Despite this, the company increased its quarterly dividend per share and announced a new share buyback program. Chief executive Wael Sawan said, “Shell delivered another quarter of strong performance, concluding a year in which we made good progress across the targets outlined at our Capital Markets Day.”

In 2024, Shell expects a cash capital expenditure of $22 billion to $25 billion, which is compared to $24.39 billion in 2023 and $24.83 billion in 2022. Shell shares were up 1.5% to 2,483.00 pence on Thursday morning in London. The FTSE 100 index, of which Shell is a major component, was up just 0.2%.

The oil and gas company noted a decline in profits for the entire year of 2023 due to a combination of lower oil and gas prices, reduced volumes, and lower refining margins. However, they stressed the positive completion of a $3.5 billion share buyback and their intention to launch a new $3.5 billion program. CEO Wael Sawan emphasized a continued focus on “delivering more value with less emissions.”

Shell expects a cash capital expenditure of $22 billion to $25 billion for 2024, while its shares were up 1.5% to 2,483.00 pence on Thursday morning in London. The FTSE 100 index, of which Shell is a major component, was up a mere 0.2%.



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