Shell,
Europe’s biggest oil-and-gas company, had an impressive 2023 even though oil prices were substantially lower.
The spike in crude prices after Russia invaded Ukraine led to record profits for major oil companies in 2022.
Shell’s
adjusted earnings in 2023 came to $28.3 billion, 29% below the haul the year before. Nevertheless,
Shell
was able to boast that it returned $23 billion to shareholders last year. It also said was raising its dividend and would continue its share buyback program.
The stock added 2.9% in London trading Thursday. Its American depositary receipts climbed 2.8% just after the market opened. The
S&P 500
rose 0.6%, while the U.K. blue chip FTSE 100 was up 0.1%.
A big part of Shell’s success in the fourth quarter was its trading and liquefied natural gas operations, which form a bigger part of the company’s business than for rivals.
Exxon
and
Chevron,
whose shares fared worse in 2023 than Shell’s, report earnings on Friday. London-based
BP
reports next week.
Despite Shell’s strong performance last year, it still carries a lower valuation than
Exxon
or
Chevron.
Shell trades at 8 times forward earnings, while its U.S. peers are at 11 times earnings.
Shell’s adjusted earnings of $7.3 billion in the fourth quarter beat analysts’ estimates. Per-share adjusted profit of $1.11 also topped forecasts of 91 cents. The company also said capital expenditures will be lower over the next few years than previously thought, and that it will cut operating costs.
Write to Brian Swint at [email protected]
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