Shell Reports $28 Billion Profit in 2023, Boosts Dividend

 Shell Reports $28 Billion Profit in 2023, Boosts Dividend

Shell (SHEL.L) has unveiled a 2023 profit of $28 billion on Thursday, marking a 30 percent decrease from the previous year’s record due to a decline in energy prices and demand. Despite this, the company managed to enhance its dividend by 4 percent and extend share repurchases.

In 2023, Shell distributed approximately $23 billion to shareholders, equivalent to over 10 percent of its market value. This underscores investors’ emphasis on returns amid the uncertain future of fossil fuels in the sector.

Shell’s 2023 profits were characterized by reduced margins in chemicals and refining sectors, along with sluggish fuel sales due to subdued global economic activity following the surge in energy prices spurred by Russia’s invasion of Ukraine in 2022.

However, Shell concluded the year on a positive note by announcing fourth-quarter adjusted earnings of $7.3 billion, surpassing analysts’ projections of $6 billion profit. Despite this, the figure was lower than the record $9.8 billion reported a year earlier.

Robust liquefied natural gas (LNG) trading outcomes during the quarter mitigated the impact of subdued results in refining and oil trading, although the chemicals division incurred a loss of $500 million.

Analysts at Bernstein projected that LNG trading contributed $3.5 billion to profits, marking a record high.

Chief Executive Officer Wael Sawan emphasized the ongoing organizational simplification with a focus on maximizing value while reducing emissions as Shell enters 2024.

At 0945 GMT, Shell’s shares surged by 2.5 percent. Notably, the company’s shares have demonstrated superior performance compared to its competitors over the past year, boasting an increase of over 8 percent.

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