Shell's Strategic Reorientation Amidst Profit Dip
Shell reported a 16% decline in 2024 earnings due to lower oil and gas prices and demand, but increased shareholder returns with a dividend hike and a share buyback. The company aims to focus on more profitable sectors like oil, gas, and biofuels while reducing renewable investments.
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Shell announced a 16% drop in its 2024 annual profit, which it attributed to weaker oil and gas prices, as well as reduced demand. This comes despite the company's strategic refocusing on its most profitable sectors and increasing shareholder returns.
The oil giant reported a decrease in adjusted earnings, down to $23.72 billion from $28.25 billion in the previous year. This figure fell short of market expectations, highlighting challenges faced by the company amid narrower LNG trading margins and weaker refining profits.
CEO Wael Sawan remains confident in the company's pivot strategy, emphasizing cost-cutting measures and a focus on oil, gas, and biofuels. Shell expects to lower capital expenditure in the coming year, with more financial details to be disclosed at its capital markets day.
(With inputs from agencies.)