Shell’s Strategic Shift: Balancing Profits Amidst Oil and Gas Price Volatility

Shell reported a 16% profit decrease in 2024 due to weakened oil and gas prices. Despite this, its shares rose by over 2% following a 4% increase in dividends and a $3.5 billion share buyback program. Shell also cut $3.1 billion in costs ahead of schedule.

Shell has announced a 16% drop in its profits for 2024, attributed to declining oil and gas prices, as well as reduced demand. However, the energy giant saw its share prices rise after boosting its dividend by 4% and unveiling a $3.5 billion share buyback for the current quarter.

The company's shares climbed over 2% despite adjusted earnings falling to $23.72 billion from $28.25 billion in 2023. This decline was driven by tighter liquefied natural gas margins, lower commodity prices, and weaker refining margins, missing industry forecasts.

Shell CEO Wael Sawan emphasized the organization's significant progress, noting a $3.1 billion cost reduction achieved a year ahead of schedule. While moving away from renewable energy, Shell continues to focus on oil, gas, and biofuels as part of its strategic realignment.

(With inputs from agencies.)