Shell's Earnings Miss Estimates Amid Lower Refining Margins

Shell reported a fourth-quarter profit of $3.66 billion, below expectations, attributed to lower refining margins and LNG trading. The company plans a $3.5 billion share buyback and a 4% dividend increase. CEO Wael Sawan continues to focus on cost-cutting and aligning with oil, gas, and biofuels sectors as energy prices stabilize.

Shell announced a fourth-quarter profit of $3.66 billion on Thursday, falling short of analyst expectations due to lower refining margins and LNG trading. Despite these challenges, the company declared a $3.5 billion share buyback and a 4% increase in dividends.

CEO Wael Sawan has concentrated efforts on reducing costs and aligning Shell with its most profitable sectors, focusing on oil, gas, and biofuels. This strategic pivot marks a shift away from renewable power generation, as the company adapts to changing market conditions.

Profits for the world's leading oil and gas companies have declined through 2024 amid stabilizing energy prices and weakened oil demand, a departure from the record earnings seen in recent years. Shell's adjusted earnings for the quarter ended Dec. 31 stood at $3.66 billion, down from $7.31 billion the previous year, and below the $4.09 billion anticipated by analysts polled by Vara Research.