Shell Strategies Amid Profit Decline: Balancing Outputs and Buybacks

Shell's Q4 profits dipped, driven by reduced refining margins and LNG trading. Profits fell to $3.66 billion, down from $7.31 billion a year prior. CEO Wael Sawan concentrated on cost-cutting, emphasizing oil, gas, and biofuels while moving away from renewable power, amid industrywide profit reductions.


Devdiscourse News Desk | Updated: 30-01-2025 12:54 IST | Created: 30-01-2025 12:39 IST
Shell Strategies Amid Profit Decline: Balancing Outputs and Buybacks
Representative Image Image Credit: Twitter(@Shell)

On Thursday, Shell announced a decrease in fourth-quarter profits, attributed to diminished refining margins and liquefied natural gas (LNG) trading impacts. In response, Shell plans a $3.5 billion share buyback.

The company's adjusted earnings, a measure of net profit, fell to $3.66 billion for the quarter ending December 31, down from the previous year's $7.31 billion. Since assuming office two years ago, CEO Wael Sawan has prioritized cost reduction and realignment of Shell's focus on the thriving sectors of oil, gas, and biofuels, while reducing its engagements in renewable power generation.

Globally, leading oil and gas companies are witnessing a downturn in profits throughout 2024, after unprecedented gains in the previous two years as energy prices stabilized and worldwide oil demand waned.

(With inputs from agencies.)

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