Shell increases dividends with a $28 billion 2023 profit

Due to robust liquefied natural gas (LNG) trade, Shell exceeded fourth quarter profitability predictions and posted a $28 billion annual profit on Thursday. This allowed the oil giant to continue repurchasing shares and raise its dividend.

Due to reduced chemicals and refining profit margins, slower fuel sales, and a slowdown in global economic activity after a record-breaking 2022 driven by a spike in energy prices following Russia's invasion of Ukraine, the year's profit was 30% less than the previous year's record.

The British corporation said that it will repurchase an additional $3.5 billion of its shares over the next three months, at a rate comparable to that of the preceding three months, and boosted its quarterly dividend by 4%.

With its dividends to shareholders reaching about $23 billion in 2023—more than 10% of the company's market value—Shell underscored the emphasis on returns on the part of investors as the industry struggles with the unpredictability of fossil fuel prices.

Shell has been reducing employees across the board, including in its low-carbon solutions sector, in recent months.

According to Reuters research, the group's spending on its renewables and energy solutions segment fell by 23% to $2.7 billion in 2023 from the previous year, which may be an indication of the shifting priorities. Comparing it to 14% in 2022, that amounts to 11% of Shell's total capital spending in 2023.

Group capital expenditures totalled $24.4 billion in 2023, and this year's total is predicted to be between $22 and $25 billion.

(Sources: investing.com, reuters.com)