Shell Plc has announced a significant return to its shareholders, totaling $23 billion for the fiscal year 2023. The disclosure was made by Shell’s Chief Executive Officer, Wael Sawan, who highlighted the company’s commitment to a “progressive” dividend policy.
Sawan stated, “In 2023, Shell returned $23 billion to shareholders. In line with our progressive dividend policy, Shell is now increasing its dividend by 4 percent. We are also commencing a $3.5 billion buyback program for the next three months.”
The third quarter of 2023 saw Shell’s adjusted earnings at $7.3 billion, marking a 17 percent increase compared to the same period in 2022. This growth was attributed to robust operational performance and strong results in liquefied natural gas (LNG) trading and optimization.
The cash flow from operations (CFFO) for the last quarter reached $12.6 billion, indicating a 2 percent rise from the third quarter of 2022. However, the total CFFO for the year 2023 was reported to be 21 percent lower than the previous year, standing at $54.2 billion compared to $68.4 billion in 2022.
Despite challenges such as lower realized oil and gas prices, reduced volumes, and lower refining margins, Shell highlighted its commitment to efficiency and cost management. The company achieved $1 billion in pre-tax structural cost reductions for the year 2023, mainly driven by strategic divestments.
The report also detailed that the full-year 2023 income attributable to Shell PLC shareholders included net impairment charges and reversals of $6.2 billion. Unfavorable movements of $1.3 billion were reported due to the fair value accounting of commodity derivatives. These charges and movements were categorized as identified items, resulting in a net loss of $8.2 billion, in contrast to a net gain of $1.2 billion in the full year 2022.
Under depreciation, depletion, and amortization, Shell addressed impairments recognized in the Upstream segment, primarily related to projects in North America, Nigeria, and the UK. These impairments were triggered by factors such as revised reserves estimates and portfolio choices.
The dividend increase and buyback program reflect Shell’s commitment to delivering value to its shareholders amid dynamic market conditions.
