Shell annual profits fall on lower oil prices after record 2022

Shell has said annual profits tumbled in 2023 after lower oil and gas prices knocked its bottom line.

The oil giant reported adjusted earnings, including taxes, of 28.3 billion US dollars (£22.4 billion) for 2023, down 29% on 2022, when soaring oil prices drove profits to an all-time high.

Underlying earnings fell 19% to 68.5 billion US dollars (£54.1 billion), down 19% from 84.3 billion US dollars (£66.6 billion) the previous year.

The lower profits come after oil prices fell last year after big increases in 2022 in the aftermath of Russia’s invasion of Ukraine, with oil trading at about 82 US dollars a barrel on average through last year, against 100 US dollars in 2022.

As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions

Chief executive Wael Sawan

But Shell said it saw a 17% increase in underlying earnings, including taxes, to 7.3 billion US dollars (£5.8 billion) quarter on quarter in the final three months of 2023.

It also announced plans to deliver more returns for shareholders, with another 3.5 billion US dollars (£2.8 billion) in share buybacks this quarter.

Shell chief executive Wael Sawan said the group “delivered another quarter of strong performance”.

He said: “As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions.”

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