Shell posts weaker-than-expected full-year profit on lower oil prices

British oil giant Shell Thursday, a significant drop in annual profit after a year of drop in crude prices.

Shell posted an adjusted profit of $ 23.72 billion for the full year 2024, compared to the annual benefit of $ 28.25 billion A year earlier.

Analysts expected the net profit of 2024 of the year of Shell to $ 24.71 billion, according to a consensus compiled by LSEG.

The adult in energy posted a lower than expected adjusted profit of $ 3.66 billion for the last quarter of 2024.

Shell has announced another share repurchase program of $ 3.5 billion, which is expected to be completed over the next three months.

“Despite the drop in profits from this quarter, cash delivery has remained solid and we generated available cash flows of $ 40 billion during the year, more than 2023, in a lower price environment”, said CEO Wael Sawan in a statement on Thursday.

“Our continuous objective on simplification has contributed to making more than $ 3 billion in structural costs reductions since 2022, achieving our objective before the scheduled date, while making significant progress compared to all our other financial objectives” -It added.

The best global oil and gas companies have seen benefits falling from Recording levels in 2022When the large -scale invasion of Ukraine by Russia has prompted the Brent Brut international index to switch to Almost $ 140 a barrel.

Oil prices have since cooled in the middle the global demand that madeWith term contracts on crude Brent on average $ 80 a barrel in 2024. It was about $ 2 a barrel less than the previous year, according to the US Energy Information Administration.

In a Commercial update On January 8, Shell reduced its prospects for the production of liquefied natural gas (LNG) for the last three months of 2024 and warned that commercial results for its chemical division and petroleum products should be “considerably lower” to a quarterly base.

The actions of the listed company in London have increased by around 4.8% up to date.

The results of the shell in the year came while the company enters the last section of its so-called “first sprint“The strategy, which was launched in 2023 and takes place until the end of this year, aims to fill the evaluation gap with American peers by increasing the profitability of the major.

Shell CEO, Wael Sawan, prioritized the company’s more profitable oil and gas operations as part of this change, while reducing expenses on areas such as offshore wind And hydrogen and withdraw from the electrical markets in Europe And China.

As other Majors of oil and gas, Shell has watered down climatic targets and green investments in recent years. The company, however, said that it was determined to become a zero zero company by 2050.

American oil giants Exxon Mobil And Chevron are both planned to publish profits on Friday, while European peers TOTAL OF THE REGALS And COP should follow up on February 5 and February 11, respectively.

This story of rupture is updated.