Shell's 2023 profit falls 30% to US$28 billion, dividend boosted

SHELL on Thursday (Feb 1) reported a 2023 profit of US$28 billion, down 30 per cent from the previous year’s record as oil and gas prices cooled, still allowing the firm to increase its dividend by 4 per cent and extend its share repurchases.

Shell posted fourth-quarter adjust earnings, its definition of net profit, of US$7.3 billion, exceeding analysts’ expectations of US$6 billion profit but down from a record US$9.8 billion a year earlier.

Strong liquefied natural gas (LNG) trading results in the quarter helped offset weaker refining and oil trading results.

Shell increased its dividend by 4 per cent quarter on quarter to US$0.344 per share and announced the repurchase of a further US$3.5 billion of its shares over the next three months, a similar rate to the previous quarter.

Its share distributions in 2023 reached nearly US$23 billion, representing more than 10 per cent of Shell’s market value and over 40 per cent of its cash flow from operations.

“As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions,” chief executive officer Wael Sawan said. REUTERS