Q4 Earnings Decline Sharply
Shell posted a 39% year-on-year decline in Q4 adjusted earnings, reaching $3.66 billion. The downturn was attributed to lower oil and gas prices, weaker refining margins, and reduced trading activity.
Shareholder Focus: New Buyback Program
Despite weaker financial performance, Shell unveiled a new $3.5 billion share buyback plan, emphasizing its commitment to rewarding shareholders. Cash dividends were held steady at $0.358 per share.
Annual Results Highlight Market Challenges
Full-year profit fell to $23.7 billion, down from $28.25 billion in 2023. Weaker LNG trading and lower marketing volumes contributed to the decline amid a softer energy market.
Cash Flow and Debt Dynamics
Operating cash flow in Q4 stood at $13.2 billion, bolstered by $2.4 billion in working capital inflows. However, increased tax and regulatory costs, coupled with higher debt, weighed on results. Net debt rose to $38.8 billion, compared to $35.2 billion in the prior quarter.
2024 Outlook and Spending Plans
Shell plans $21 billion in capital expenditures for 2024 and hinted at potential cuts in 2025. More strategic updates will be shared during its Capital Markets Day.
