Shell Plc has declared a significant dividend payout of $23 billion to its shareholders for the year 2023, according to a statement released by the company’s CEO, Wael Sawan, on Thursday.
Sawan emphasized Shell’s commitment to a ‘progressive’ dividend policy, stating, “In 2023, Shell returned $23 billion to shareholders and is now increasing its dividend by 4 percent. Additionally, we are commencing a $3.5 billion buyback program for the next three months.”
The third quarter of 2023 witnessed Shell’s adjusted earnings reaching $7.3 billion, a notable 17 percent increase compared to $6.2 billion in Q3 2022.
Sawan attributed this growth to robust operational performance, strong LNG trading, and optimization results.
The cash flow from operations for the last quarter amounted to $12.6 billion, reflecting a 2 percent rise from Q3 figures.
Despite the positive dividend news, Sawan acknowledged that the total Cash Flow From Operations (CFFO) for 2023 was 21 percent lower than the previous year, standing at $54.2 billion compared to $68.4 billion in 2022.
Shell’s unaudited results for Q4 2023 and the full year revealed that the income attributable to Shell PLC shareholders in 2023 reflected lower oil and gas prices, reduced volumes, and declining refining margins.
However, higher LNG trading and optimization margins, along with increased Marketing margins, partially offset these challenges.
The company highlighted its efforts to streamline operations, with $1 billion in pre-tax structural cost reductions compared to 2022, primarily driven by divestments.
The full year 2023 also saw net impairment charges and reversals of $6.2 billion, contributing to identified items totaling a net loss of $8.2 billion.
This contrasts with the full year 2022, which reported identified items amounting to a net gain of $1.2 billion.
Shell explained that impairments recognized in the Upstream sector were primarily associated with projects in North America, Nigeria, and the UK, triggered by factors such as revised reserves estimates and portfolio choices.
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