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Shell, the British oil giant revealing a 4% growth in its dividend and introducing a $3.5 billion share buyback initiative

The company reported adjusted earnings of $28.25 billion for the entirety of 2023, marking a 29% decline from its record annual profit of $39.9 billion in the previous year. Analysts had anticipated Shell’s net profit for the full year 2023 to be around $27.5 billion, based on a consensus compiled by LSEG.

Shell reported better-than-expected adjusted earnings of $7.31 billion for the fourth quarter of 2023. The company attributed the results to robust liquefied natural gas trading and optimization margins, which offset weaker oil products trading. Shell also declared a 4% hike in dividend per share for the fourth quarter and outlined plans for a $3.5 billion share buyback program to be implemented over the next three months. Additionally, the company noted the completion of another $3.5 billion in share buybacks announced in November of the previous year.

During morning trading, shares of the London-listed stock increased approximately 2%. Shell CEO Wael Sawan expressed satisfaction with the progress made while acknowledging that more work remains. When questioned about the balance between capital expenditure and renewable energy investment, Sawan outlined three key focus areas. He highlighted the company’s efforts to strengthen the balance sheet in 2023, reducing it by over a billion dollars. In terms of shareholder distributions, Shell has distributed 42% of its overall cash flow from operations, totaling $23 billion.

Sawan stated, “And, on top of that, our commitment to net-zero emissions by 2050 is unchanged,” emphasizing that the company had allocated $5.6 billion for “low-carbon” projects last year. He emphasized that Shell is striking a balance, ensuring the delivery of energy security today while strategically investing in its competitive strength in the energy transition.

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