Shell Hikes Dividend and Buybacks Despite Underwhelming Earnings

ByTsvetana Paraskova– Jan 30, 2025, 7:30 AM CST

Shellimage

Shell (NYSE: SHEL) on Thursday raised its fourth-quarter dividend by 4% and announced a new share buyback program even as it reported earnings below expectation for the last quarter of 2024.

The UK-based oil and gas supermajor booked $3.66 billion in adjusted earnings for the fourth quarter, below the analyst estimate of around $4 billion, and down from the $6 billion for the third quarter of 2024.

‘;
document.write(write_html);
}

The fourth-quarter earnings reflect lower prices and margins, higher exploration well write-offs, and the non-cash impact of expiring hedging contracts on LNG trading and optimization results, the company said.

Earlier this month, Shell had already warned that its LNG production and trading and oil trading businesses were set to book significantly lower results for the fourth quarter of 2024, due to seasonality and timing of lifting.

The chemicals and products division even slipped to a $200-million loss from earnings of $500 million for the third quarter, due to “significantly lower contribution from trading and optimisation, including seasonality effects, and continued weak chemicals margin environment,” Shell said.

Full-year 2024 adjusted earnings, Shell’s preferred metric for net profit, fell to $23.7 billion from $28.25 billion in the previous year.

However, cash flow from operations (CFFO) remained resilient in both Q4 versus Q3, and for the full year compared to 2023. CFFO for the whole of 2024 hit $54.68 billion, slightly higher than $54.19 billion for 2023.

“2024 was another year of strong financial performance across Shell. Despite the lower earnings this quarter, cash delivery remained solid and we generated free cash flow of $40 billion across the year, higher than 2023, in a lower price environment,” CEO Wael Sawan said.

Shell is increasing dividend per share by 4% to $0.358 for the fourth quarter, while commencing a $3.5 billion share buyback program expected to be completed by the Q1 2025 results announcement in the spring.

The buyback program is the 13th consecutive quarter of at least $3 billion of share repurchases, Shell said.

The higher dividend and new buyback reaffirm the priority of the company, and other Big Oil firms, to return more cash to their shareholders and boost share prices.

At Shell, distributions to shareholders were $22.6 billion in 2024, representing 41% of CFFO generated last year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com

Join the discussion | Back to homepage

 

  • Related Posts

    Global Gas Crunch Makes Europe’s Remaining Coal Plants Profitable

    The global LNG supply crunch has made Europe’s last-standing coal-fired power plants profitable this year as gas supply costs soar while the need for conventional generation to stabilize grids remains.…

    Iran War Set To Push PetroChina’s Trading Profit to Record $3 Billion

    The trading arm of China’s state-owned giant PetroChina is set to reap a record more than $3 billion (20 billion yuan) in trading profits this year as the Middle East…

    Have You Seen?

    Global Gas Crunch Makes Europe’s Remaining Coal Plants Profitable

    • October 16, 2026
    Global Gas Crunch Makes Europe’s Remaining Coal Plants Profitable

    Data Centers Drive Surge in India’s Renewable Power Demand

    • October 16, 2026
    Data Centers Drive Surge in India’s Renewable Power Demand

    Iran War Set To Push PetroChina’s Trading Profit to Record $3 Billion

    • October 16, 2026
    Iran War Set To Push PetroChina’s Trading Profit to Record $3 Billion

    Air Liquide to expand nitrogen pipeline in China to support chipmaking

    • October 16, 2026
    Air Liquide to expand nitrogen pipeline in China to support chipmaking

    Aternium targets 2027 off-site construction of hydrogen, heavy-water systems

    • October 16, 2026
    Aternium targets 2027 off-site construction of hydrogen, heavy-water systems

    Intel Israel plant explosion sparks NF3 leak

    • October 16, 2026
    Intel Israel plant explosion sparks NF3 leak

    Trump Condemns Ukraine’s Russian Refinery Strikes as a “Disgrace”

    • October 16, 2026
    Trump Condemns Ukraine’s Russian Refinery Strikes as a “Disgrace”

    India Slashes Diesel Export Tax as Global Fuel Crunch Deepens

    • October 16, 2026
    India Slashes Diesel Export Tax as Global Fuel Crunch Deepens

    South Korea Turns Back to Coal as LNG Crisis Deepens

    • October 16, 2026
    South Korea Turns Back to Coal as LNG Crisis Deepens

    China’s Sufficient Gas Stocks Could Ease Winter Supply Concerns

    • October 16, 2026
    China’s Sufficient Gas Stocks Could Ease Winter Supply Concerns