Shell, a leading energy company, has revealed an annual profit of $28 billion, fueled by strong liquefied natural gas (LNG) trading.
Despite a 30 percent dip in annual profit from the previous year’s record, Shell showcased resilience amid challenges in the chemicals and refining sectors and sluggish fuel sales tied to a global economic slowdown post-2022.
Shell Chief Executive Officer Wael Sawan, who assumed the role in January 2023, vowed to reshape Shell’s strategy by focusing on higher-margin projects, maintaining oil output stability, and boosting natural gas production. This commitment was evident in recent months with company-wide staff reductions, including within its low-carbon solutions division, Reuters news report said.
In a notable shift, Shell’s spending on renewables and energy solutions decreased by 23 percent in 2023, amounting to $2.7 billion, representing 11 percent of the company’s total capital spending, compared to 14 percent in 2022. Shell’s total capital expenditure for 2023 reached $24.4 billion, with expectations ranging from $22 billion to $25 billion in the current year.
Last year, Shell invested 5.6 billion dollars in low-carbon energy, such as our Nature Energy acquisition and the CrossWind JV, which will supply renewable power to Holland Hydrogen 1, Europe’s largest electrolyser.
Despite challenges, Shell concluded the year strongly, reporting fourth-quarter adjusted earnings of $7.3 billion.
Exxon Mobil and Chevron are set to report their results on Friday, followed by BP and TotalEnergies next week.
Shell reported pre-tax impairment charges of $5.5 billion, with reductions in the value of its chemicals business in Singapore, revisions of oil and gas operations in Nigeria, Britain, and North America, and adjustments in LNG production estimates in Australia contributing to the charges.