Shell’s earnings fell by nearly a third as the company adapted to reduced oil and gas prices.
The company reported adjusted profits of $28.3 billion (£22.3 billion) for 2023, a 29% decrease from the previous year’s record $39.9 billion (£32.2 billion), which followed the energy crisis caused by Russia’s invasion of Ukraine.
This decline coincides with a 37% drop in Brent crude oil prices since reaching $127 a barrel in March last year, a consequence of Vladimir Putin’s invasion of Ukraine. Additionally, wholesale gas prices have seen a dramatic 90% fall since the initial energy market shock.
Despite this, Shell reported a 17% increase in adjusted profits for the fourth quarter, amounting to $6.3 billion (£5 billion), even as Greenpeace activists staged a “profit party” protest at its London headquarters.
The company also declared a new $3.5 billion share buyback program for the upcoming quarter, consistent with the previous quarter’s level.
CEO Wael Sawan commented, “Shell has maintained strong performance in the last quarter, rounding off a year of significant progress towards our goals set at our capital markets day. As we move into 2024, our focus is on streamlining our operations, aiming for higher value and lower emissions.
“In 2023, we returned $23 billion to our shareholders. In alignment with our progressive dividend policy, we are increasing our dividend by 4%. Additionally, we are initiating a $3.5 billion buyback program for the next three months.”
