Shell posts the lower than expected profit in a full year on the drop in oil prices

British Oil Giant Shell said a significant drop in annual profit on Thursday, citing higher exploration radiation, lower trade and lower gross prices in the last three months of the year.

Shell posted an adjusted profit of $ 23.72 billion for the full year 2024, compared to the annual profit 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. A separate forecast of the analysts interviewed by Vara Research expected the annual profits to expect $ 24.11 billion.

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

Shell has announced a 4% increase in dividend per share and launched another $ 3.5 billion share buy -back program, which is expected to be completed in the next three months.

Addressing “Squawk Box Europe” of CNBC on Thursday, the CEO of Shell, Wael Sawan, described 2024 as a “very strong year”, the one that gave the company a platform “to do everything that We said we were going to do. ”

When asked if he was time for Shell to move his London list to New York to fill the evaluation gap on his American peers, Sawan said that the company “still examined the lists of the siege and other “.

However, “there is no live discussion at the moment on this subject in Shell, because our number one priority is to ensure that we unlock the full potential of this business,” noted Sawan.

The actions of the listed company in London exchanged 0.4% more at 9:25 a.m. London time.

Other strengths of income:

• The annual cash flow flows reached $ 54.68 billion, beating analysts’ expectations
• Net debt at the end of 2024 was $ 4.7 billion less than at the start of the year

The best oil and gas companies in the world have seen benefits fall from record levels in 2022, when Ukraine’s large -scale invasion in Russia prompted the Brent Brent international index to increase to nearly $ 140 a barrel.

The oil prices have since cooled in the middle of the global demand that breathes, with upwards up to 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 trade update on January 8, Shell has reduced its prospects for the production of liquefied natural gas (LNG) for the last three months of 2024 and has warned that trade results for its chemical division and petroleum products should be “considerably lower “on a base quarterly.

Shell’s Shell’s results occur 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’s 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 withdrawal Electrical markets in Europe and China.

Like the other oil and gas majors, Shell has watered up climatic targets and green investments in recent years. The company, however, said that it was determined to become a zero zero company by 2050.

Analysts led by Biraj Borkhataria on RBC capital markets said that Shell’s results have confirmed “relatively soft” expectations but showed a robust cash generation.

“Since the expectations had fallen as a result of the update of exchanges, we consider these results as an incident,” said Borkhataria in a research note.

In addition, Maurizio Carulli, Energy Analyst of Quilter Cheviot, said that the results of Shell’s fourth quarter painted a “mixed image”.

“Although the profits are lower than expectations, the performance of the company’s cash flows exceeded consensus estimates,” said Carulli.

“Seasonal factors, alongside prices and lower margins, have had a negative impact on profits. However, these concerns are attenuated by the generation of solid cash flow of Shell,” he added.

American oil giants Exxon Mobil And Chevron should both publish profits on Friday, while European peers totaled those responsible and COP should follow up on February 5 and February 11, respectively.