A shell logo is displayed on 03 May 2024 in Austin, Texas.
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British oil giants shell On Thursday, the last three months of the year recorded a significant decline in the annual profit, citing high exploration rights, low business margin and weak raw price prices.
Shell posted an adjusted income of $ 23.72 billion for 2024 as compared to the annual profit. $ 28.25 billion A year ago.
According to the LSEG-Sankalized Conscience, analysts expected to have a net profit of the full year 2024 in $ 24.71 billion. A separate forecast from analysts voted by Vara Research expects a full-year benefit in $ 24.11 billion.
The energy chief posted a weak-predicted adjusted income of $ 3.66 billion for the last quarter of 2024.
Shell announced a 4% increase in dividends per share and launched another share buyback program of $ 3.5 billion, which is expected to be completed in the next three months.
Talking to CNBC “Squalk Box Europe” On Thursday, Shell CEO Well Sawan described 2024 as a “very strong year”, a platform to the company, “Whatever we had said,” whatever we are going to do, whatever we are going to do. Were. ,
Asked if she was given time for Shell to close its listing from London to New York to shut down the evaluation difference on its American peers, Sawan said the firm “was always the headquarters listing and such reviews. ”
However, “Shell has no live discussion at the moment because our number one priority is to ensure that we unlock the entire capacity of this company,” Sawan said.
London-listed company shares did 0.4% more business at 9:25 pm at London.
Other earning highlights:
- Full year cash flow from operating activities came in $ 54.68 billion, analysts defeating expectations
- At the end of 2024 at the end of the year, $ 4.7 billion was less at the beginning of the year
The world’s top oil and gas companies have seen profits falling Record level in 2022 When Russia’s full -scale invasion of Ukraine inspired the International Benchmark Brent crude to jump About $ 140 per barrel,
Oil prices have become cold since then Globally The $ 80 per barrel was average in 2024 with Brent crude futures. It was about $ 2 per barrel less than the previous year, according to US Energy Information Administration,
One in Business update On 8 January, Shell trimmed its liquefied natural gas (LNG) production approach for the last three months of 2024 and warned that the trading results for the division of its chemicals and oil products to be “significantly low” based on a quarter. Was hopeful.
‘First sprint’
The result of the full-year of the shell comes as the company enters the final stretch of its so-called “First sprint “The strategy, which was launched in 2023 and lasts by the end of this year, aims to close the valuation gap with American peers by promoting the profitability of the major.
Shell CEO Well Sawan has preferred more profitable oil and gas operations of the firm as part of this shift, such as cuts on areas offshore wind And Hydrogen And retreat from electric markets Europe And China,
Like Other Big oil and gas companies, shells have watered water Climate target And green investment in recent years. However, the company has said that it is committed to becoming a net-zero energy business by 2050.
On Sunday, February 11, 2024, Oil Storage Silos, beyond the oil storage silos at the Shell PLC Parnis Refinery at Rotterdam, Netherlands.
Bloomberg | Bloomberg | Getty images
Analysts led by Birj Borkhataria at RBC Capital Markets stated that the results of the shell confirmed “relatively soft” expectations, but showed strong cash production.
Borkhataria said in a research note, “Expectations fell after the trading update, we see these results to a great extent unevenly.”
Separately, Maurizio Karully, an energy analyst of quilter shaviet, stated that the results of the fourth quarter of the shell depicted the “mixed picture”.
“While the earnings had come down from expectations, the company’s cash flow exceeded consensus projections,” Karully said.
He said, “Seasonal factors, with low prices and margin, affect earning negatively. However, these concerns are reduced by the creation of the shell’s strong cash flow,” he said.
American oil giants Exon mobil And Shehtir Both are scheduled to report earnings on Fridays, while European peers Total And BP Are ready to follow the suit on 5 and February 11 respectively.
