Shell Plc (LON:SHEL) maintained the pace of its share buybacks after a strong performance from its gas traders offset the impact of lower commodity prices in Q4.
The London-based energy giant benefited both from “exceptional” trading opportunities on the global gas market and higher volumes of liquefied natural gas available for sale thanks to the end of maintenance works at its Prelude facility in Australia.
The company said it will repurchase $3.5 billion of shares this quarter, matching the level of the preceding three months. It is the first of the so-called supermajors to report earnings in what’s expected to be a weaker quarter across the board for the industry.
“Shell delivered another quarter of strong performance,” Chief Executive Officer Wael Sawan said in a statement on Thursday. “In 2023, Shell returned $23 billion to shareholders.”
Shell’s adjusted net income for the three months ended Dec. 31 was $7.31 billion, down from $9.81 billion a year earlier but beating the average analyst estimate of $6.14 billion.
The company’s chemicals unit posted the worst performance, with adjusted earnings dropping from $1.38 billion in the third quarter of 2023 to just $83 million in the final three months of the year. Margins in the business were hammered by a global oversupply and weak demand, according to the statement.
Profit from chemicals and oil products — a core part of the majors’ global operations — was actually outstripped by the renewables and energy solutions division, which reported adjusted earnings of $155 million.
Shell has said its priority is boosting returns to shareholders, while scaling back less profitable parts of the business, such as renewables. Its quarterly dividend of 34.4 cents a share was 4% higher than a year earlier.
“As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions,” Sawan said.
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