Shell’s Profits in 2023 Hit by Fall in Energy Prices

The company reported adjusted EBITDA of $16.3 billion, more or less unchanged from the prior quarter, said the press release.

SEATTLE (Oil Monster): Oil and gas major Shell plc. reported lower profits in 2023,mainly driven by falling energy prices. The profits for the previous year stood at $28.2 billion, significantly down from $39.9 billion reported in 2022. The company had reported its highest ever profits in 2022.

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The dip in profits was mainly due to lower oil and gas prices, lower trade volumes and lower refining margins. Shell reported profits of $7.3 billion in the final quarter of 2023, beating analysts’ expectations. However, it stood significantly lower when compared with record profits of $9.8 billion posted in the corresponding quarter a year before. The company reported adjusted EBITDA of $16.3 billion, more or less unchanged from the prior quarter, said the press release.

The company announced 4% increase in dividend for the fourth quarter and a $3.5 billion share buyback program, which will be executed over the next three months.

Commenting on the results, Shell CEO Wael Sawan said that he is pleased with the progress, but there is more to go. The company has strengthened its balance sheet through 2023. The net debt increased from $40.5 billion at the end of Q3 to $43.5 billion by the end of the previous year, he noted.