
Shell reported a drop in fourth-quarter profit on Thursday, missing estimates due to lower refining margins and LNG trading, while announcing a $3.5 billion share buyback and a 4% dividend increase.
The oil and gas major reported adjusted earnings, its definition of net profit, of $3.66 billion for the quarter ended December 31, down from $7.31 billion a year earlier.
That was short of the $4.09 billion expected by analysts polled by Vara Research.
The weaker-than-expected results add pressure on CEO Wael Sawan, who has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power.
Shares of the company were up 0.25% in morning trading, broadly in line with the blue-chip FTSE 100 index.
Shell also expects 2025 capital expenditure to fall below last year's $21 billion, with more details to be shared at its capital markets day in March.
For the full 2024, Shell's profit fell 16% to $23.72 billion.
The world's leading oil and gas companies experienced a decline in profits through 2024, following record earnings in the previous two years, as energy prices stabilised and oil demand weakened.