Oil giant Shell posted its highest-ever annual profit of $39.9 billion, which was recorded for the full year of 2022.
The report was disclosed in its fourth-quarter audited report for 2022, released on February 2, 2023.
In its financial statement, Shell reported adjusted earnings of $39.9 billion for the full year 2022. This comfortably surpasses the $28.4 billion in 2008, which Shell said was the firm’s previous annual record, and is more than double the firm’s full-year 2021 profit of $19.29 billion.
For the fourth quarter of 2022, Shell reported adjusted earnings of $9.8 billion, with adjusted earnings before taxes, income, depreciation, and amortization (EBITDA) of $20.6 billion, despite the lower oil and gas prices compared with Q3 2022 and higher LNG trading and optimization results. Its shareholder distribution for 2022 amounted to $26 billion.
Its cash flow from operations amounted to $22.4 billion for the fourth quarter, which benefited from a working capital inflow of $10.4 billion. Q4 2022 production was higher than in Q3 2022, mainly driven by lower scheduled maintenance and lower unscheduled deferment.
In the fourth quarter, Shell strengthened its portfolio with the announcement of the acquisition of Natural Energy (Denmark) and also simplified its portfolio with the merger of Shell Midstream Partners (USA).
Shell announced its $4 billion share buybacks, expected to be completed by the first quarter of 2023, and a 15% dividend per share increase for the fourth quarter. For the final quarter of 2022, Shell reported adjusted earnings of $9.8 billion.
Wael Sawan, Chief Executive Officer of Shell Plc, promised in his statement to continue implementing the Powering Progress strategy and to focus on performance. “Our results in Q4 and across the full year demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world. We believe that Shell is well-positioned to be a trusted partner through the energy transition. As we continue to put our Powering Progress strategy into action, we will build on our core strengths, further simplify the organization and focus on performance. We intend to remain disciplined while delivering compelling shareholder returns, as demonstrated by the 15% dividend increase and the $4 billion share buyback programme announced today.” He said.
