Shell Faces Profit Dip But Boosts Shareholder Returns

Shell reported a 16% profit drop for 2024 due to weak oil prices and demand. Despite this, shares rose after a 4% dividend increase and $3.5 billion share buyback announcement. The company reported fourth-quarter earnings nearly halved from the previous year and a $2.2 billion impairment in its projects.

Shell, one of the world's leading oil and gas companies, announced a 16% decline in profit for 2024. The decline, attributed to weaker oil and gas prices and reduced demand, did not deter investor confidence. Shares rose as Shell increased its dividend by 4% and unveiled a $3.5 billion share buyback plan for the current quarter.

The company revealed that its 2024 adjusted earnings fell to $23.72 billion, missing market forecasts. Lower liquefied natural gas trading margins and weaker refining operations contributed to the decline. Despite a challenging year, Shell continues to prioritize returning cash to shareholders, with CEO Wael Sawan emphasizing cost-cutting and a focus on profitable sectors like oil, gas, and biofuels.

Fourth-quarter earnings almost halved compared to the previous year, impacted by a $2.2 billion impairment largely due to an offshore wind project write-off. Shell expects 2025 capital expenditure to decrease from the previous year, citing strategic shifts and market conditions. Meanwhile, disputes over LNG supply contracts continue to affect operations, as seen with Venture Global's Calcasieu Pass facility.

(With inputs from agencies.)