Shell Raises Dividend Despite Profit Shortfall

Shell’s 2024 earnings landed below market expectations, reflecting weaker trading margins, exploration write-offs, and softer crude prices in the last quarter. The British oil giant posted an adjusted full-year profit of $23.72 billion, down from $28.25 billion in 2023. 

Analysts had expected earnings closer to $24.71 billion. The final quarter proved very soft, with adjusted earnings at $3.66 billion. Despite this, Shell increased its dividend per share by 4% and rolled out a $3.5 billion share buyback program.

Market reaction was lukewarm, with Shell’s shares rising 1.1% in London trading. The company maintained strong cash flow, with full-year operating cash flow hitting $54.68 billion, outpacing analyst estimates. Net debt dropped by $4.7 billion over the year, bolstering the balance sheet.

Shell’s results come amid falling oil profits across the industry. In 2022, Brent crude soared to nearly $140 a barrel following Russia’s invasion of Ukraine, but prices have since retreated. Brent futures averaged $80 a barrel in 2024, about $2 lower than the previous year. Weaker demand weighed on Shell’s performance, with the company trimming its LNG production outlook and reporting significantly lower trading results in its chemicals and oil products division.

What Does This Mean for Me?

As part of its ongoing restructuring, Shell continues prioritizing profitable oil and gas operations while scaling back investments in offshore wind, hydrogen, and European power markets. The company says it is still committed to long-term net-zero goals but has softened its immediate climate targets.