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Shell Reports $7.3 Billion in Fourth Quarter 2023 - CStore Decisions

Shell Reports $7.3 Billion in Fourth Quarter 2023 - CStore Decisions

Shell Reports $7.3 Billion in Fourth Quarter 2023

The company distributed a noteworthy $23 billion to shareholders throughout the entire year.

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Shell has released its financial results from the fourth quarter of 2023.

“Shell delivered another quarter of strong performance, concluding a year in which we made good progress across the targets outlined at our Capital Markets Day. As we enter 2024, we are continuing to simplify our organization with a focus on delivering more value with less emissions,” said Shell CEO Wael Sawan. “In 2023, Shell returned $23 billion to shareholders. In line with our progressive dividend policy, Shell is now increasing its dividend by 4%. We are also commencing a $3.5 billion buyback program for the next three months.”

In the quarter, Shell reported adjusted earnings of $7.3 billion, which the company accredited to “robust operational performance and strong LNG trading and optimization results.”

Shell’s cash flow from operations (CFFO) hit $12.6 billion for the quarter — total CFFO from 2023 amounted to $54.2 billion.

The company also reported that for the entire year, it distributed $23 billion to shareholders, in excess of 40% of CFFO for 2023. Additionally, the company saw an increase of 4% in dividend per share for the fourth quarter and has plans for a $3.5 billion share buyback program, which is expected to be completed by its Q1 2024 results announcement.

Some decisions made by Shell that contributed to the successful quarter were the start-up of Mero-2 in Brazil — which, according to the company, enhanced its advantaged upstream portfolio — and Shell’s final investment in the Sparta deep-water development in the U.S. Gulf of Mexico.

“By focusing the portfolio and simplifying the organization, $1 billion of structural cost reductions (were) delivered in 2023,” the company noted in its announcement.

Shell stated that a focus on disciplined spending led to a 2023 capital expenditure of $24.4 billion, with its 2024 capital expenditure predicted to reach $22-25 billion in 2024.

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