Shell launches US$3.5bn buyback while lower profit tops City hopes
Published: 02:51 01 Feb 2024 EST
Shell PLC (LSE:SHEL, NYSE:SHEL) on Thursday launched a US$3.5 billion share buyback and boosted its dividend 4%, despite reporting a big drop in fourth-quarter profit.
The FTSE 100-listed oil and gas producer said fourth-quarter adjusted earnings were US$7.31 billion, up from US$6.22 billion in the third quarter, but down from US$9.81 billion in the final quarter of the previous year.
Shell said profit - which was around US$1 billion above City forecasts - reflected a robust operational performance and strong LNG trading and optimisation results.
But the firm booked impairment charges and reversals of US$3.9 billion and noted unfavourable movements due to the fair value accounting of commodity derivatives.
Cash from facility operations totalled US$12.6 billion for the quarter and US$54.2 billion for full-year 2023.
Looking ahead, Shell said cash capital expenditure for 2024 is expected to be within US$22 to US$25 billion with Integrated Gas production expected to reach approximately 930 to 990 thousand barrels of oil equivalent per day (boepd).
Upstream production is expected to be approximately 1,730 to 1,930 thousand boepd and marketing sales volumes are expected to be approximately 2,150 to 2,650 thousand barrels per day.
The firm increased its dividend by 4% to $0.344.
